Technically, anyone can file bankruptcy at any time, regardless of their past filing history. However, as outlined below, subsequent filings often have limited effects.

Since the Supreme Court has diluted some protections in the Fair Debt Collection Practices Act, Chapter 7 bankruptcy is the best way to obtain immediate relief from aggressive creditors. This relief usually includes the Automatic Stay and debt discharge. The Automatic Stay in a Chapter 7 immediately halts most kinds of adverse action, such as repossession, eviction, and foreclosure. When the case ends, the judge discharges most unsecured debts, like medical bills and credit cards. That combination gives debtors the fresh start they deserve.

Thanks to a combination of solid advice and assertive representation, an Athens bankruptcy lawyer helps debtors maximize their fresh starts.

Prior Dismissals and the Automatic Stay

Some people file bankruptcy and, for various reasons, do not complete it. Sometimes, the prior dismissal is voluntary. That’s especially common among do-it-yourself filers who soon realize they are in over their heads. Without an experienced Athens bankruptcy attorney to handle court appearances, bankruptcy is an extremely complex process. Sometimes, the court involuntarily dismisses cases, mostly because of a missed filing deadline. Once again, these situations are common in do-it-yourself bankruptcies.

Generally, the lookback period is six months in these situations. Rules vary slightly in different jurisdictions, but here’s how it normally breaks down:

• One Prior Dismissal: In these cases, an Athens bankruptcy lawyer simply needs to file a motion to extend the stay contemporaneously with the petition and schedules. Judges normally sign these orders without requiring hearings.
• Two Prior Dismissals: The judge normally extends the Automatic Stay for at least ninety days if the debtor proves the newest petition was filed in good faith. Evidence of good faith usually includes a valid reason for the prior dismissal. The aforementioned do-it-yourself dismissals usually qualify as such.
• Three Prior Dismissals: In these cases, there is essentially a presumption that the debtor is a serial filer who is using bankruptcy to frustrate creditors, as opposed to using bankruptcy to obtain a fresh start.

Speaking of serial filers, many of these people file bankruptcy using different entities (e.g. John Smith and John Smith, LLC) or file in different areas. In ye olden days, these scams sometimes worked. But almost everything is computerized and automated now, so things are different.

Prior Discharge and Debt Forgiveness

The Automatic Stay rules are relatively straightforward, but the subsequent discharge rules are rather complex, so strap yourselves in.

The same chapter discharge waiting periods are either the longest or the shortest. For successive Chapter 7s, the waiting period is eight years. For successive Chapter 13s, the waiting period is two years.

Debtors who receive Chapter 7 discharges are usually eligible for a Chapter 13 discharge after four years. If the order is flipped (Chapter 13 then Chapter 7), the discharge waiting period is normally six years.

“Chapter 20” Bankruptcies and Athens Bankruptcy Attorneys

Frequently, these debt discharge limitations are largely irrelevant. Sometimes, debtors simply need more time to pay off certain obligations.

Assume Julio files a do-it-yourself Chapter 7 because he thinks it will erase his back taxes. Unfortunately, the IRS has assessed the tax debt within the last six months, so the debt is not dischargeable. To avoid wage garnishment and other possible adverse actions, Julio could immediately file Chapter 13. If he only has the one bankruptcy on his record, an Athens bankruptcy lawyer could easily extend the Automatic Stay, as outlined above. As a result, he has up to five years to pay off his past-due taxes without harassment from the IRS.

Courts do not always allow Chapter 20 bankruptcies, mostly because the informal qualifications are different for different chapters. Generally, Chapter 7 debtors must have almost no disposable income, and Chapter 13 debtors must have considerable disposable income. So, debtors should only file a Chapter 20 if they have experienced counsel.

Get Sound Legal Guidance from a Knowledgeable Athens Bankruptcy Attorney

Debtors can file Chapter 7 as often as they like, but the effects might be different. For a free consultation with an experienced Athens bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. We routinely handle matters in Clarke County and nearby jurisdictions.