Financial hardships are often unexpected. Thus, individuals in West Virginia and elsewhere often seek ways to address their growing debt. It can feel like a helpless situation; however, filing for bankruptcy might be the best decision one can make. Even if you have a history of bankruptcy filings, this does not mean you cannot file again.
Filing a subsequent bankruptcy
Much like there are rules that designate who can file for bankruptcy, there are also rules regulating how often an individual can file for bankruptcy. Following a bankruptcy filing, there is a waiting period that must be met before filing for bankruptcy again; however, this waiting period is dependent on the previous bankruptcy type as well as the type of bankruptcy the individual seeks to file.
Chapter 7
If you seek to file a Chapter 7 bankruptcy and the previous filing was wither a Chapter 7 or 11, you will need to wait 8 years to file for Chapter 7. Things get more complicated if the previous filing was a Chapter 13. There is no waiting period to file for Chapter 7 if all creditor’s claims in the prior Chapter 13 case were paid in fully. Additionally, there is no waiting period if 70% of these claims were paid and the repayment plan was a good faith effort that represents the best efforts given your income and expenses. Finally, if less than 70% of the claims were not paid, there is a 6-year waiting period.
Chapter 13
If your previous filing was Chapter 7, you typically need to wait at least 4 years. In contrast, if the previous filing was a Chapter 13, the waiting period is reduced to two years from when the bankruptcy case was filed.
Navigating debt can be challenging, especially when you are not fully aware of your debt relief options. While changing spending habits can be helpful, bankruptcy might be the best solution when it comes to eliminating debt and creating a fresh financial start.
