Can I File For Chapter 7 Bankruptcy Again If I Received a Bankruptcy Discharge In The Past?

There are some potential clients who, for various reasons, find themselves in need of bankruptcy relief again after having previously received a bankruptcy discharge. These clients often wonder if and when they are eligible to receive a discharge of their debts through Chapter 7. A person is eligible to receive another discharge under Chapter 7 eight (8) years after the filing date of the previous case in which he received a Chapter 7 discharge. For example, let's say someone filed a Chapter 7 bankruptcy case on January 1, 2008, and received a discharge in that case on June 1, 2008. If the same person needs to file another Chapter 7 case on May 1, 2015, he would be eligible to receive a discharge under Chapter 7 since May 1, 2015, is more than eight years since the filing date of his previous Chapter 7 case (January 1, 2008). It is important to note that it is eight years from the date of filing, not the date of discharge.

Now if the previous case where a discharge was received was a Chapter 13 instead of a Chapter 7, a different rule applies. A person is eligible for a Chapter 7 discharge six (6) years after the filing date of a Chapter 13 case where he received a discharge and his unsecured creditors were paid less than 70% through the Chapter 13 plan. It should also be noted that the amount paid to unsecured creditors must have been proposed in good faith and was the person's best effort. For example, a person files a Chapter 13 case on May 1, 2008, and receives a discharge on May 1, 2011, after having completed a Chapter 13 plan that provides 0% repayment to unsecured creditors. If this same person wants to file a Chapter 7 case on May 1, 2015, he would be eligible for discharge since May 1, 2015, is more than six years after the filing date of his Chapter 13 case in which he received a discharge and paid less than a 70% dividend to unsecured creditors. It should be noted that the six-year waiting period only applies when a discharge was received in the previous Chapter 13 case and unsecured creditors receive less than 70% repayment. There is no six-year waiting period if the previous Chapter 13 case was dismissed or more than 70% of unsecured debt was paid through the Chapter 13 plan.

Therefore, it is possible to receive a Chapter 7 discharge even if one has previously received a bankruptcy discharge. However, there are rules that dictate how much time must pass before one is eligible for Chapter 7 discharge after having a previous discharge under either Chapter 7 or Chapter 13. If you have previously received a bankruptcy discharge and have questions about whether you are eligible for a Chapter 7 discharge, contact the Douglasville Bankruptcy Lawyer at (770) 485-6620.