How Many Times Can You File for Bankruptcy in California?
If you’re considering filing for Chapter 7, you may be wondering how many times can you file for bankruptcy in California. There is no limit to how many times you can file for bankruptcy in Califonia under any chapter. If you are eligible, you can file for bankruptcy multiple times.
What Is the Time Between Bankruptcy Filings?
Unless you are able to discharge your debts, you don’t need to wait for a new bankruptcy filing. You can file a new case at any time. The main issue is usually whether you are eligible to receive a discharge in a new bankruptcy case.
How to Determine the Time Between Filings
This is the definitive guide that will tell you how long it takes for an individual (not a partnership or corporation) to file another bankruptcy case in order to get a discharge of your debts.
Chapter 7 Bankruptcy: You can file a Chapter 7 case and get dischargeable debts unless:
- You were discharged in a Chapter 7 or Chapter 11 case that was filed (commenced) within 8 years before the filing of the “new” case or,
- You received a discharge from a Chapter 13 case within 6 years prior. If your Chapter 13 case was filed within 6 years and you have paid 70–100% of the claims under the above provisions, there is no deadline for filing a Chapter 7 discharge.
Chapter 13 Bankruptcy: You can file a Chapter 13 case and get a discharge of your dischargeable debts unless:
- You were discharged from a previous Chapter 7, 11, or 12-case filed (commenced) within 4 years before the filing of the “new” case or,
- You received a discharge from a Chapter 13 case that was filed 2 years before the “new” case.
Chapter 11 Bankruptcy: You can file a Chapter 11 case and get a discharge of your dischargeable debts at any time unless:
- Chapter 11 is a liquidation of all assets or substantially all assets. No business will be operated after the consummation. The time requirements for Chapter 11 are the same as for Chapter 7.
Should I File Another Bankruptcy Now If I’m not eligible for a Discharge of Debts?
Even if your debts are not dischargeable, you still have the right to file the next case.
You might be wondering what they are.
The automatic stay during bankruptcy prevents creditors from taking any collection actions during bankruptcy. This applies regardless of whether the debtor is able to discharge his debts.
How Is That Helpful?
Let’s suppose you owe taxes and the IRS asks you to pay them all within 24 months. You can extend your tax payments for 60 months by filing a Chapter 13 case. This will enable you to pay no interest.
The same can be done for student loans. However, unlike other taxes, student loans do not need to be paid in full within the Chapter 13 period. Therefore, multiple Chapter 13 cases may be required to maintain student loan protection.
Let’s say that you just filed a Chapter 7 and got your discharge. However, you still have a junior lien on your home that you can remove in a Chapter 13 case. Even though you will not receive a discharge, you can file a Chapter 13 to remove the lien. Such liens cannot be removed from Chapter 7.
We hope this article has given you a clear answer on how many times you can file for bankruptcy in California. The next step is to look for an experienced California bankruptcy attorney to help you with debt relief.
Schedule a Consultation With a California Bankruptcy Lawyer
Before you make any rash decisions it is critical that you seek the advice of a licensed professional in your local area. Bankruptcy can have long-term implications both personally and financially so it is crucial that you understand all your options before choosing a course of action.
Tenina Law has been helping clients in filing bankruptcy for 20 years. You are assured that our bankruptcy lawyers in California are ready to provide you with the best solutions when it comes to your problems. If you need the assistance of a bankruptcy attorney for your legal issue, Tenina Law will be apt to provide you with quality representation. Contact us now for an initial consultation!