We don’t live in a perfect world. That’s why there are laws in place that are there to protect us from our own mistakes. One such helpful tool the law provides for us is bankruptcy. Sometimes we find ourselves in an impossible financial situation by no fault of our own. Sometimes we find ourselves in an impossible financial situation and the fault can be laid squarely at our feet. And then there are the times that we find ourselves in an impossible financial situation, file bankruptcy, get a fresh start and then find ourselves in an impossible financial situation again.
In this situation, you would need to know how soon you could file bankruptcy for the second time. Bankruptcy law states that you can only file for Chapter 7 bankruptcy and receive a discharge of your debts once every 8 years. For those who find themselves facing creditor lawsuits or foreclosure, etc. before they have reached the 8-year mark, they have the option of filing for Chapter 13.
A Chapter 13 bankruptcy is a repayment plan for none, some or all of your debt. The repayment plan stretches across 3-5 years. Some filers will be assigned a payment of $100/month for the length of their Chapter 13 repayment plans. This type of minimal payment isn’t going to go a long way towards actually paying back much of the principal probably owed to creditors, but individuals who are facing lawsuits and are unable to pay need to have the protection that bankruptcy offers.
If you are in need of advice on filing bankruptcy for the second time and what options are open to an individual who has multiple bankruptcies, contact the southern California bankruptcy experts at Westgate Law.
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