- 1 can you file chapter 13 after 7
- 2 Information on Chapter 13 Bankruptcy - Retain Your Assets and Repay Your Creditors
- 2.0.1 Overview of Chapter 13 Bankruptcy
- 2.0.2 What is the Difference Between Chapter 13 and Chapter 7?
- 2.0.3 Who Can File for Chapter 13 Bankruptcy?
- 2.0.4 What Are The Benefits to Filing CH 13?
- 2.0.5 How Long Does it Take to Pay Off a Chapter 13 Bankruptcy?
- 2.0.6 What Are Some Disadvantages to Filing for Chapter 13 Bankruptcy?
- 2.0.7 Will a Chapter 13 Bankruptcy Affect my Credit?
- 3 Bankruptcy Options and How They Affect Your Mortgage
- 4 How Many Times Can You File Bankruptcy?
- 5 After a Foreclosure Sale Date Is Set Can I Still File Chapter 13?
can you file chapter 13 after 7
I recently moved from Arizona. Can I still file in Arizona?
Yes, if you have not been out of Arizona more than 90 days
However, like most things in the Bankruptcy Code, the answer is not quite as simple as it seems. The state in which you must file is controlled by 11 U.S.C. пїЅ 1408. That statute specifies that you can file only in the state in which you have had your domicile, residence, principal assets or principal place of business for the majority of the last 180 days.
In most consumer bankruptcy cases, the location of filing (we lawyer types call this venue) is based on residence. As a result, you could file in Arizona until you had resided in the other state for more than 90 days.
But wait! It can get more complicated if you moved to yet another state before you have been out of Arizona for 90 days. Arizona might be the state you would have to file even when you had been out of Arizona for six months! Remember, you can only file in the state where you have resided longest in the last 180 days.
One final note: If you file in Arizona, you will have to return to Arizona for the court meeting. [9-98]
How long do I have to reside in Arizona to file here?
The simple answer is that you can file in Arizona after you have resided here for 90 days.
The Bankruptcy code is almost never that simple, and if you read the previous question, this answer is going to sound very familiar.
The state in which you must file is controlled by 11 U.S.C. пїЅ 1408. That statute specifies that you can file only in the state in which you have had your domicile, residence, principal assets or principal place of business for the majority of the last 180 days.
Since residence controls the place most consumer bankruptcies are filed, you can file here after you have resided here longer here than in any other state in the last six months. If you were only in Arizona an one other state, that would be on the 91st day you are here. If you resided in two other states for 60 days each, you could file here after you have been here for 61 days. I'll let you do the math, but if you move a lot, it could be even less time.
Although you cannot file until you have met the residency requirement, you may retain an attorney and begin preparation of your case anytime. If your attorney will allow you to refer creditors to his or her office (as our office does), it can stop annoying creditor's calls even before you file. However, only filing will stop repossession, foreclosure, lawsuits and judgments. [12-6-99]
Does bankruptcy have to be filed in the county in which you reside?
Bankruptcy cases generally have to be filed in the court having jurisdiction over cases in the county in which you reside, but there are exceptions. If most of your assets are in another location, or your principal place of business is in another location, you may file in the court in that location. пїЅ 1408.
The court location for every county in Arizona are given on our Locations page.
We handle cases for all counties in Arizona. Usually, all matters can be taken care of by phone and mail, but you will have to attend a hearing based on where your case is filed. [5-10-00]
Do bankruptcy filings get posted in the local papers?
Cases are public records, so any paper choosing to do so may publish the names of persons who have filed. I am aware of no papers in the Phoenix area that publish those names, however, you may want to check in publications in your area to see if they devote a section to those listings. My experience has been that papers serving smaller regions are more likely publish bankruptcy filings. [5-10-00]
When you file Chapter 13, can you move out of state, and still just continue to mail your payments to trustee--as long as you notify them of changes?
Yes, once you have filed in the correct state (see the jurisdictional requirements above), you may move wherever you wish, assuming you return for your пїЅ 341 meeting and have a local attorney who can handle whatever else comes up. Naturally, you will need to be sure to keep your attorney, the trustee and the court advised of your address. [1-4-00]
Can you file Chapter 13 after you have filed Chapter 7 have missed payments on accounts that have been reaffirmed?
Yes, you can file Chapter 13 even right after a Chapter 7. That is those of us in the bankruptcy practice would call a "Chapter 20." There is no real Chapter 20, but we bankruptcy attorneys amuse ourselves by proving that we can add.
Sometimes a Chapter 7 is immediately followed by a Chapter 13 intentionally. For example, if you had unsecured debt in excess of $269,250 you could not file Chapter 13, even to protect your home from foreclosure. After a Chapter 7, you would have no (or hopefully, much less) unsecured debt, and you could then file Chapter 13 to save your home.
In your case, you can file Chapter 13 to deal with secured debt which you reaffirmed. [8-99]
I wanted to know if we can file for Chapter 7 for our medical bills. My husband just had emergency surgery for his Appendix to be removed. Plus we both had some medical bills collections on our credit from the past. Also we wanted to file a chapter 13 on our car and van payments and credit cards.
You can file a Chapter 7 to discharge your medical bills. However, filing two bankruptcies is probably not the most practical solution.
It is possible to file a Chapter 7 discharging certain unsecured debts like your medical bills and then file a Chapter 13 to deal with the vehicles. People sometimes think that a Chapter 13 must pay all of the bills over the period of the plan, and that discharging unsecured debt in a Chapter 7 will reduce the payments in the subsequent Chapter 13.
A Chapter 13 does not require that all of your unsecured debt be paid. In most of the Chapter 13 cases that we file, only a tiny portion of the unsecured debt (like medical bills and credit card debt) is paid. The payments usually are applied directly to the claims secured by the home and vehicles. As a result, it is quite possible that your payments would be virtually the same in a single Chapter 13 filing as they would be in a Chapter 13 filed after a Chapter 7. [9-1-04]
These questions and answers are not intended as legal advice or as a statement of the law. They are intended to suggest areas which you should discuss with your attorney.
Although Bankruptcy law is Federal code applicable to all states, the way it is applied may depend upon state law and varying practices of the courts, trustees, and even attorneys. As a result, some of these answers are directly applicable only in cases filed by our office in Arizona.
Information on Chapter 13 Bankruptcy - Retain Your Assets and Repay Your Creditors
Last Updated: May 11, 2016
There are two main ways to file personal bankruptcy under the U.S. Bankruptcy Code - Chapter 7 and Chapter 13. In a CH 7, your assets are liquidated to pay off your debts and then you are given a clean slate, so to speak. In a CH 13 filing, you are given 3 to 5 years to pay off your debts and you are able to keep all of your assets. Of course, there is a lot more to each type of bankruptcy and in this article we will address the most frequently asked questions regarding filing Chapter 13 BK.
Overview of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as a reorganization bankruptcy. It is filed by individuals who want to pay off their debts over a period of three to five years and it appeals to people who do not want to liquidate non-exempt property.
Chapter 13 is also an option for individuals who have sufficient income to pay their reasonable monthly expenses and have money left over to pay off their debts. In other words, CH 13 is for someone who did not pass the Means Test and cannot file for CH 7 bankruptcy.
What is the Difference Between Chapter 13 and Chapter 7?
One of the main differences between Chapter 13 and Chapter 7 bankruptcy, is the ability of a debtor to retain certain assets that would otherwise be liquidated by a Chapter 7 bankruptcy trustee. In most cases, you can keep your home and your car under either plan, provided your equity does not exceed certain limits. However, under CH 7, you wouldn't be able to keep your rental properties, antique gun collections, etc.
The goal of most Chapter 7 bankruptcies is to discharge your existing debts and allow you a "fresh start" on your finances. In other words, once your discharge is granted, you no longer need to repay the debts that were incurred before you filed your bankruptcy.
Under a Chapter 13, however, you repay most or all of your debts before your slate, so to speak, is wiped clean. And because you repay your debts, you gain certain advantages over a Chapter 7 BK.
Who Can File for Chapter 13 Bankruptcy?
An individual with regular income, who can pay for their living expenses but can not keep up with the payments on their debts. They must have less than $383,175 in unsecured debt and whose secured debts are less than $1,149,525.
What Are The Benefits to Filing CH 13?
Chapter 13 bankruptcy protects individuals from the collection efforts of creditors; permits individuals to keep their real estate and personal property; and provides individuals the opportunity to repay their debts through reduced payments. Another benefit is that the time your Chapter 13 bankruptcy shows on your credit report is less, so it takes less time to repair your credit after a bankruptcy.
You may be able to discharge debts in a Chapter 13 bankruptcy that would be non-dischargeable under other chapters, for example, fraud judgments.
How Long Does it Take to Pay Off a Chapter 13 Bankruptcy?
The size of your monthly plan payments is determined by the amount you can afford to pay after paying necessary living expenses - i.e. insurance, car payment, mortgage payment, food, utilities, etc.
Typically, the payments last for 36 months, unless additional time is requested, but in no event will they last more than 60 months. Therefore, if your payment analysis shows, for example, that you can afford to pay $200.00 per month (above and beyond your normal living expenses), you would pay that each month to the Chapter 13 Trustee, who would disperse it pro rata among your creditors. At the end of 36 months, you are discharged from all dischargeable unsecured debts, regardless of how much your creditors have received.
In addition to your plan payments, you must stay current with any ongoing obligations you have to secured creditors, such as on your mortgage. Chapter 13 (or any type of bankruptcy for that matter) only affects debts that you owe on or before you filed the bankruptcy. Therefore, on your mortgages and other secured debts, your Plan payment goes to pay any arrearages that existed on the date you file and you can repay that arrearage over the life of the Plan; but, you must stay current from the filing date forward with any mortgage payments, etc.
Secured debts (your mortgages) must be repaid in full, but CH 13 enables you to cure the defaults (reinstate the loans) over 36 months (or up to 60 months with creditor consent and court approval). You also have the ability to eliminate junior liens from your real property (your mortgages) under certain circumstances and restructure mortgage and other payments.
What Are Some Disadvantages to Filing for Chapter 13 Bankruptcy?
If you miss any payments at all that are due under your Plan, your case will be dismissed by the Court. Also, generally speaking, a CH 13 case is a bit more expensive to file than a CH 7 case - sometimes running $1,000 to $1,500 more in filing fees than a Chapter 7 bankruptcy filing.
Will a Chapter 13 Bankruptcy Affect my Credit?
Yes. A CH 13 bankruptcy will stay on your credit report for 7 years after you file, as opposed to 10 years if you file CH 7 BK. Other accurate negative reports on your credit must be removed after 7 years, such as late payments on credit cards, foreclosures, etc.
Your credit will most definitely be less damaged than had you completed a Chapter 7. However, the usual limitations will apply until the bankruptcy disappears off of your report: You will not get as high a credit limit as you once had nor will you be able to borrow a large sum of money. But getting some credit, such as a secured credit card, shouldn't be that difficult and you will be able to rebuild your credit over time.
What you will likely face is not unlike a person with a Chapter 7 on their credit report: higher interest rates, required higher down payments, more points, etc. But you will be treated more leniently than a person with a Chapter 7 bankruptcy. For instance, mortgage lenders will give you the benefit of the doubt, giving you preferred credit status over those filing Chapter 7.
Bankruptcy Options and How They Affect Your Mortgage
Bankruptcy is a bummer. No one has ever said “OH MAN! I’m so excited to file bankruptcy! It’s going to make everything so awesome!” That being said, sometimes it needs to be done. If you have explored all of the alternatives and have decided to file bankruptcy, it’s important that you know what your options are and how they will impact your existing mortgage, or your future ability to obtain home loan financing.
What’s the difference between Chapter 7 and Chapter 13?
Chapter 7 bankruptcy is also known as total bankruptcy. It’s a wipeout of many (or all) of your debts. Also, it might force you to sell, or liquidate, some of your property in order to pay back some of the debt. Chapter 7 is also called “straight” or “liquidation” bankruptcy. Basically, this is the one that straight-up forgives your debts (with some exceptions, of course).
Chapter 13 bankruptcy is more like a repayment plan and less like a total wipeout. With Chapter 13, you file a plan with the bankruptcy court detailing how you will repay your creditors. Some debts will be paid in full, some will be paid partially or not at all, depending on what you can afford. Chapter 7 = wipeout. Chapter 13 = plan.
How does Chapter 7 bankruptcy affect my existing mortgage?
When you file Chapter 7, your existing property will either be deemed exempt or nonexempt. Exempt means you will be able to keep the property throughout the bankruptcy process. Nonexempt means you will either be required to surrender the property or pay its value in cash as a part of the bankruptcy. In some cases, people are allowed to keep nonexempt properties. It all depends on the bankruptcy trustee and how they choose to handle the property.
To understand how chapter 7 impacts your existing mortgage, you must first understand the difference between a loan and a lien.
When you get a mortgage, your mortgage company gives you a loan. They let you borrow money in order to buy a property. When they do that, they have a lien on the property. A lien is a right or interest in the property that the mortgage company has until the debt (or loan) is paid in full.
When you file Chapter 7, you are no longer legally obligated to repay the loan. “Legally obligated” are the key words here because Chapter 7 does not get rid of the lien on the property. Your lender still has a right to the property if the debt is not paid. So basically, you don’t have to pay your mortgage. But if you don’t you will lose your property because your lender will likely enforce the lien they have. If you are able to keep your home as part of Chapter 7, it’s probably a good idea to do everything in your power to keep paying your mortgage.
How long do I have to wait after Chapter 7 to get a new mortgage?
Most reputable lenders, including Quicken Loans, will not consider you for financing until two years after the Chapter 7 bankruptcy has been discharged. If you find a lender who will consider you prior to two years, make sure you are fully aware of all the terms and conditions included in your mortgage. Really scrutinize the details and look at all the costs to ensure you’re not being scammed.
Ok, what about Chapter 13? What happens with my existing mortgage?
With a chapter 13 bankruptcy, you will not lose your property. You will include details on how you plan on paying your mortgage in your repayment plan. In most cases, an automatic stay is issued once Chapter 13 is filed. An automatic stay means that creditors must stop collection efforts. It was designed to temporarily halt foreclosure and stop repossession of homes regardless of the stage of the foreclosure proceedings.
How long do I have to wait after Chapter 13 to get a new mortgage?
Most reputable lenders, including Quicken Loans, will not consider you for financing until at least one year after the Chapter 13 bankruptcy has been discharged. Some exceptions are made for US veterans. If you find a lender who will consider you prior to one year, make sure you are fully aware of all the terms and conditions included in your mortgage.
Filing for bankruptcy is a big decision that has a lot of implications for your current and future financing. Make sure you discuss your options with a lawyer or your financial advisor before you stop making payments or file for bankruptcy.
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How Many Times Can You File Bankruptcy?
The short and simple answer is: YES, you can file bankruptcy for the second or even third time. Although there are no specifics on how often you can file for bankruptcy, there is a restriction as to when you can file for a second bankruptcy after filing for a first one. The length of waiting period is usually dependent on the type of bankruptcy you pursued the first time.
Initial Chapter 7 Bankruptcy Discharge
Let us say you initially filed a Chapter 7 Bankruptcy and received a discharge for it, allowing you to be free from most of the debt you have accumulated. The amount of time you have to wait for another filing would depend on the second bankruptcy type you want to file.
Chapter 7 Bankruptcy to Chapter 7 Bankruptcy
If you are filing for a Chapter 7 Bankruptcy, you will need to 8 years from the date you filed the first Bankruptcy documents. Note that the 8 years starts from the FILING date and not the grant of bankruptcy. Hence, if you filed for Chapter 7 on the year 2000, you can file again on the year 2008.
Chapter 7 Bankruptcy to Chapter 13 Bankruptcy
If you are filing for a Chapter 13 after being initially discharged for a Chapter 7, you will have to wait just 4 years from the time you filed the initial bankruptcy application. The wait is therefore shorter but only available if you gathered a favorable discharge with the first bankrtupcy.
The situation is different if you initially filed and gained a favorable discharge from a Chapter 13 Bankruptcy and may be dependent on how you paid off your remaining debts after Chapter 13. As you know, there is a marked difference between a Chapter 7 and a Chapter 13. Chapter 7 is often viewed as a clean slate type, wiping out all debts except for those specifically exempted by the law. Chapter 13 however does not wipe out debts but rather, makes it easier for you to pay off the amount. Chapter 13 can be loosely viewed as debt consolidation, allowing you to pay off a small amount each month for a specific number of years.
Chapter 13 Bankruptcy to Chapter 7 Bankruptcy
If you initially file a Chapter 13 Bankruptcy, you will have to wait 6 years before filing for a Chapter 7 bankruptcy. Again, you count 6 years from the time of filing of the initial Chapter 13. For example, if you file a Chapter 13 on 2000, you can file a Chapter 7 on the year 2006.
However, there are instances when you can file a Chapter 7 Bankruptcy within 6 years after an initial Chapter 13 discharge. This is only possible if you have managed to pay off more than 70% of your debts from the Chapter 13.
For example, say you filed for a Chapter 13 on the year 2000 with a debt of $10,000. If you wish to file Chapter 7 in 2004 which is within 6 years, you must have paid at least $7,000 or 70% of the debt. If this is not the case, then your Chapter 7 application will be declined. You will have to wait until the year 2006 before your Chapter 7 is accepted.
Chapter 13 Bankruptcy to Chapter 13 Bankruptcy
The wait is shorter if your initial Bankruptcy filing was a Chapter 13 followed by another Chapter 13. Since the debt is simply carried with none wiped out, you only have to wait 2 years before filing a second case. Hence, if you filed for Chapter 13 on year 2000, you can file another one in the year 2002.
What if there is No Initial Discharge?
Note that the waiting period above applies only when you have actually gained a discharge from the
state. If this is not the case, then you do not have to wait before submitting another application. This means that you are denied rather than dismissed. Denial connotes that the court does not deem your bankruptcy application worthy, which may be attributable to different causes. Nowadays, the law is very strict with the regulations regarding bankruptcy and employs a mathematical equation to fully understand whether you are in dire financial straits to warrant a discharge. This being the case, re-submitting your bankruptcy application after being DENIED will not really bode well for your chances. Since they will be looking at the same information, there’s every chance you will be denied again. This is when the input of a lawyer becomes crucial to ensure that your information will reflect a financial situation suitable for a bankruptcy grant.
A dismissal is another matter. If your case is dismissed, then you will have to wait 180 days before filing another motion for bankruptcy. With dismissal, it doesn’t matter what kind of Chapter you initially filed for. Reasons for dismissal are varied ranging from failure to appear in court, failure to obey a court order, or even a voluntary dismissal.
How many times you can file for bankruptcy depends largely on your current situation and your past bankruptcy applications. One thing you can be sure though is that with each filing, you’ll be getting a poorer reception from the State. This is why it’s often a good idea to consul a bankruptcy lawyer, especially if you’re filing a second or third bankruptcy. The assistance of a professional makes it easier to argue your case.
Bankruptcy laws offer individuals many opportunities to do something about their finances in the event of problems. Note though that the law operates to protect both the debtor and the creditor. Hence, the limitations are put in place to ensure that creditors aren’t taken advantage of even as it gives individuals the chance to restore their finance.
Note that if you commit any fraud in pursuance of your bankruptcy application, then the waiting period may be longer than 8 years, often indefinite and subject to the full discretion of the court. How many times can you file for bankruptcy may be completely cut off by committing fraud.
After a Foreclosure Sale Date Is Set Can I Still File Chapter 13?
Foreclosure proceedings, no matter what stage they are in, never create an obstacle for filing Chapter 13 bankruptcy. The eligibility requirements to file Chapter 13 bankruptcy do not relate in any way to whether foreclosure is occurring or has already happened. There is some question, however, whet
Foreclosure is a mortgage lender's contractual right to take a borrower's property if the borrower does not repay the mortgage loan. Foreclosure is a contract right governed by state law. A short sale, like foreclosure, is also a matter of contract. This means that a mortgage lender can agree to a s
The United States Bankruptcy Court calls Chapter 13 a "debt adjustment" plan; it allows you to restructure payments to your creditors so you can hang onto and catch up with secured loans that you want to keep. Most debtors file for Chapter 13 protection because they want to save their homes from for
If you are overwhelmed with debt and in danger of losing your home to foreclosure, you may be able to save your house by filing bankruptcy under Chapter 13. This chapter outlines a system by which creditors can reorganize their finances and repay all or a portion of their debts under a court supervi
If you're facing the possibility of losing your home and want to avoid foreclosure, filing for Chapter 7 bankruptcy protection may be your best alternative. Filing for Chapter 7 essentially halts collection efforts against you, including foreclosure proceedings. While filing Chapter 7 may not preven
A Chapter 13 bankruptcy allows you to satisfy certain debts through a court supervised payment plan. If you are at a juncture where a mortgage lender obtained permission from the bankruptcy court to proceed with a foreclosure against you despite the payment plan, you still have other options. One co
The foreclosure process is complicated by state laws and specific lender terms. Borrowers in fear of foreclosure should familiarize themselves with the foreclosure process in the state they reside in. Some state laws require the bank, or lender, to send the borrower a notice of sale when a pending f
Oftentimes, foreclosure sale dates are postponed while homeowners are arranging a short sale or a mortgage modification. When foreclosure sales dates are postponed, the lender agrees to put the sale off for an indefinite period of time. The amount of time allowed homeowners to find alternative mortg
Many debtors in danger of losing their homes file for Chapter 13 bankruptcy. Chapter 13 bankruptcy requires debtors to enter a debt repayment plan that will last either three or five years. These debtors should have regular income for the years to come because of this fact. If a debtor takes a finan
Foreclosure doesn't happen overnight. Before a lender files foreclosure, you have time to devise an alternative plan or make arrangements to find new housing. For many people, filing Chapter 13 bankruptcy is a viable alternative to foreclosure. However, filing Chapter 13 carries consequences. Weigh