SECOND BANKRUPTCY

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When you filed bankruptcy your main goal is to discharge from all liabilities. In the filing of first bankruptcy, you discharge from all liabilities earlier but this can’t happen in the case of the second bankruptcy filing. In first filing of bankruptcy although you discharge most of your liabilities but there were some liabilities which are non-dischargeable and you need some automatic protection that is available through filing bankruptcy which protects you from creditors and your assets and there is also a possibility that you don’t get that source of income which you expected in past(at the time of filing of first bankruptcy).So these type of situations required for filing of bankruptcy to get relief from all type of debt. There are certain limitations for filing second bankruptcy mainly time limitation. For filing second bankruptcy there is a certain time gap between first filing and second filing for bankruptcy. if there is no time gap between which is require then the filing of second bankruptcy is almost impossible. The following is the breakdown provided under the bankruptcy code:

If you file first bankruptcy case under chapter 7 and receive the discharge from liability then you must have to wait for 8 years from the date you filed before getting the discharge in the second bankruptcy case.

E.g. If you filed your 1st Chapter 7 bankruptcy on may 1, 2008. You received a discharge on august 30, 2008. In order for you to qualify for another discharge in your 2nd Chapter 7 bankruptcy, you must wait until May 2, 2016, to file your 2nd Chapter 7 bankruptcy to get a discharge.

If you file first bankruptcy course under chapter 7 and want to file second  bankruptcy course under chapter 13 you  must have to wait for 4 years for filing second bankruptcy

For e.g you filed first bankruptcy under chapter 7 on 1st may 2012 and for filing second bankruptcy course under chapter 13 you must have to wait until 2nd may 2016.

If you filed first bankruptcy case under chapter 13 and receive the discharge from liabilities you must have to wait for 2 years for filing a second bankruptcy case.

For e.g. you file the case of first bankruptcy on may 1,2008 and discharge from liabilities on 2nd June 2012,  but you are able to file a case of second bankruptcy on 2nsd may 2010.

If you filed the first bankruptcy case under chapter 13 and discharge from liabilities and you want to file a second bankruptcy case under chapter 7 you must have to wait for 6 years for filing the second bankruptcy case.

Before filing for the bankruptcy, must join the bankruptcy course. For preventing the situation of bankruptcy people must go for the debtor education course and credit counseling course. Debtor education course will guide the people on how to manage the financial budget so that they can avoid the bankruptcy. Always keep a good check on your all expenses and saving to avoid bankruptcy.