How Many Times Can You File Bankruptcy?

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How Many Times Can You File Bankruptcy?

How many times can you file bankruptcy depends on how well you understand the bankruptcy process. You must understand the bankruptcy law thoroughly. Bankruptcy is a legal process with lots of rules involved. You can file bankruptcy as many times as you like and whenever you wish, but you don’t always get the result that you want. There are limits on whether your debts will be discharged. Limits on bankruptcy were made so that people won’t take advantage of that privileged of having your debts discharge. Imagine bankruptcy with no limits, how many times can you file bankruptcy? Maybe ten times or you can file bankruptcy for the rest of your life. This will lead to creditors and lenders being out of business which is not a good thing. Credit is important for businesses and consumers; good credit makes businesses grow fast and help consumers in times of crisis. Be well prepared before you ever filed bankruptcy. Make sure you can bounce back financially after all your debts are discharged. Check all dischargeable debts and filed them all in the bankruptcy case. Remember it’s not about how many times can you file bankruptcy that matters, it’s hopefully you’ll never need to file one. The October 17, 2005 changes in the bankruptcy law have made it a lot harder for people to file bankruptcy. It is important to seek alternative solutions to your financial problem because bankruptcy can leave a red mark on your credit report that stays with you for a very long time. This can greatly affect your future ability to obtain new credit, job application or even renting a house.

You can choose what type of bankruptcy to file. Chapter 7 relies on what type of previous bankruptcy you filed and the measurement of the time periods from the commencement date of the respective cases. Chapter 7 can be filed every 8 years from a previous chapter 7 filing and every 6 years from a prior chapter 13 filing. A person cannot obtain a discharge in a chapter 7 filing if the debtor has obtained a discharge in a chapter 7 filed within the past 8 years or a discharge in a chapter 13 filed within the past 6 years. Chapter 13 can be filed every 4 years from a previous chapter 7 filing and every 2 years from a prior chapter 13 filing. A person cannot obtain a discharge in a chapter 13 filing if the debtor has obtained a discharge in a chapter 7 filed within the past 4 years or if the debtor has obtained a discharge in a chapter 13 filed within the past 2 years. Dates of discharge doesn’t affect disqualification but the type of bankruptcy you will file and the measurement of the given time periods will have a bearing on how many times can you file bankruptcy in your situation.

There are many reasons that lead people to file for bankruptcy. Consumers who find themselves in huge mountains of debts and had no means of repaying them might have filing for bankruptcy as only the last choice they have. Situations that are out of control from the hands of consumers can also be a factor that results to bankruptcy. Unexpected events such as job lay off, catastrophic events, huge medical and hospitalization bills can sometimes make filing for bankruptcy as the most viable option available. Other reasons for bankruptcy are divorce and financial mismanagement. There can be unlimited reasons that can lead you to bankruptcy but how many times you can file bankruptcy exist only if you meet the requirements of the bankruptcy law. Avoiding bankruptcy is like avoiding sickness, keep your credit healthy and in check. Get your finance in order. Mismanagement can cause more debt that you might find unaffordable. Always start with a budget; this will help you have a good credit. Think smart about your money and stay away from credit trap. Stay alert on high interest credit cards and loans because this can dip into your savings. For more information on how many times can you file bankruptcy, visit http://www.onlinebkassist.com.

For more information, visit http://www.onlinebkassist.com
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