Anyone may file Chapter 7 again at any time they please. However, subsequent filings might affect the Automatic Stay and debt discharge. The Automatic Stay prohibits utility shutoff, repossession, wage garnishment, foreclosure, and other adverse creditor actions. In a Chapter 7, a “discharge” usually means the judge eliminates the legal obligation to repay unsecured debts, such as medical bills and credit cards.

Many people must file bankruptcy again. Typically, a financial storm, such as a job loss or serious illness, forces people into Chapter 7. Unfortunately, these storms are not once-in-a-lifetime events. The next one is probably just around the corner.

A Georgia bankruptcy lawyer helps debtors maximize their fresh starts, so in many cases, there are able to weather the next financial storm. Furthermore, only an attorney can give people legal advice about the consequences of a subsequent filing. Bankruptcy petition preparers cannot give this kind of advice, and do-it-yourself filers are completely on their own.

Subsequent Filing and the Automatic Stay in Georgia

Bankruptcy is designed to be a shield and not a sword. So, debtors are allowed to file bankruptcy to find relief from overaggressive creditors. But they cannot file bankruptcy repeatedly, and somewhat dishonestly, in order to frustrate creditors.

The serial filing rule varies in different jurisdictions. Generally, it follows the “three strikes and you’re out” protocol.

• One Prior Filing: If a Georgia bankruptcy lawyer files a motion to extend the stay at the same time as the petition, the Automatic Stay usually takes full and complete effect. Most judges do not even scrutinize these motions, let alone require a hearing.
• Two Prior Filings: At this point, there is a slight presumption that the debtor might be misusing bankruptcy. A Georgia bankruptcy lawyer can overcome this presumption with any evidence of good cause. Essentially, that means there was a good reason the two prior bankruptcies were dismissed.
• Three Prior Filings: In these situations, there is little that a Georgia bankruptcy lawyer can do, in terms of the Automatic Stay. Even if the judge imposes the Stay, it’s usually for a limited amount of time or for limited purposes.
  There is typically a six-month lookback period in these situations. If a debtor’s prior bankruptcy was voluntarily or involuntarily dismissed earlier than that, it does not count.

Subsequent Filing and Debt Discharge in Georgia

It does not take very long to accumulate a significant amount of credit card or other unsecured debt. Most banks happily issue credit cards to almost anyone. Somewhat similarly, many medical conditions never go away. Cancer might go into remission for several months or even several years. But in many cases, it comes back, and it brings high medical bills with it.
So, many debtors find themselves in need of another fresh start. Such relief could be available, depending on the amount of time which has passed since the previous discharge. The waiting periods and rules for Chapter 7 are somewhat complex.

• Debtors who receive a Chapter 7 discharge cannot receive another one for eight years.
• The waiting period is only six years if the prior bankruptcy was a Chapter 13. The waiting period might be shorter still if the debtor repaid at least 70 percent of unsecured debts in that prior Chapter 13.

These rules are fixed by law. Judges have almost no discretion in this area. So, extenuating circumstances are usually irrelevant.

“Chapter 20” Bankruptcies in Athens, Georgia

Many people do not need a subsequent discharge. They only need a little more time to repay secured debts following a three-year Chapter 13. In these situations, filing a subsequent Chapter 7 might be a good idea, even though the discharge waiting period has not expired. This strategy, which is only allowable in some jurisdictions, is called a Chapter 20 bankruptcy.

Assume Harry is way behind on his mortgage payments. He files Chapter 13 to stop foreclosure and get time to catch up on payments. But the protected repayment period only lasts three years. So, he still owes the mortgage company some money when the judge closes the bankruptcy.

If Harry immediately files a Chapter 7, the Automatic Stay takes full effect, because there is no prior dismissal on his record. When the judge closes the bankruptcy about nine months later, Harry does not receive a discharge. But he does not need one. He only needed a few more months to make catch-up payments, and that’s what he got.

Consult with an Knowledgeable Georgia Bankruptcy Lawyer in Athens, GA

You can file Chapter 7 again. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. We routinely handle matters in Clarke County and nearby jurisdictions.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.