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Bankruptcy is an emergency gateway, and it should be used sacredly. However, with the extended pandemic, many people are seeing a lot of unseen circumstances that are making life difficult every few years. Bankruptcy can be filed multiple times. There is no restriction so that one person can file bankruptcy only once or twice in a lifetime. But there are some cool-off periods and other laws that prevent consistent misuse or abuse of the bankruptcy codes. The intention of filing for bankruptcy is closely evaluated by the bankruptcy court. If the intention is incorrect, then the filer might be in trouble.
Disruptive bankruptcies
A one-year ban could be enforced by the bankruptcy court on the filer if it is observed that the filer continues to file bankruptcy appeals just to create inconvenience for the lenders. In such a situation bankruptcy has no actual merit but it is done to create frustration or additional delays in payment to the lenders. Such repetitive occurrences will be dealt with very strictly by the bankruptcy court.
Discharge rules
Repeat bankruptcy filings do not guarantee the discharge of debts. There might be a seasoning period before you receive your second discharge of debts. This cool-off period or seasoning period is at the discretion of the court, depending on the circumstances, and varies on a case-to-case basis. Sometimes, borrowers need to file for bankruptcy even without discharge to request a restructured plan to catch up on their lagging EMIs or request a better payment plan to ensure they can safeguard their essential assets. To understand seasoning periods and their exceptions, log on to https://recoverylawgroup.com/bankruptcy/ now.
- The seasoning period if you are filing for Chapter 13 after previously filing Chapter 7 is 4 years
- The same is 8 years if you file for Chapter 7 after previously filing Chapter 7
- The seasoning period if you are filing Chapter 13 after previously filing Chapter 13 could be 3 years or more
- The same is 6 years or to the discretion of the bankruptcy courts based on various facts available at their disposal
Dismissal
The dismissal of a bankruptcy code is very sad, which essentially means the bankruptcy case is rejected and the borrower continues to live with the miseries he/she had earlier. If you are in Los Angeles & Dallas, TX, dial 888-297-6203 right now if you need instant resolution for your dismissed case. Dismissal is usually due to two aspects. One is due to incorrect or incomplete filing or lack of appearances as instructed by the court. In these cases, usually, the filer can file the bankruptcy claim again with rectified details almost instantly after the dismissal.
However, if there is intent to destroy a record, willful failure to follow or abide by court directions or orders, presenting inaccurate facts before the court, or an attempt to fraud lenders, there can be a waiting period of 6 months before you can refile. In such situations, lenders or the trustee might also charge the filer with criminal cases of fraud as the filer attempted to manipulate facts and fraud the lenders.