One of the initial questions to a new client is whether the client has ever filed a bankruptcy before. If so, the prior bankruptcy filing may affect the client's ability to file a new bankruptcy, under what chapter the client can file under, and whether the client is eligible for a discharge. Under bankruptcy law prior to the changes in the law in 2005, a debtor could not receive a discharge in a Chapter 7 if the debtor had received a discharge in a previous chapter 7 case filed within 6 years prior to the second bankruptcy. Thus, there was a 6 year waiting period between chapter 7 cases under prior law. Under the old law a debtor could file a Chapter 7 bankruptcy, obtain a discharge, and then immediately file a chapter 13 bankruptcy and receive a discharge in that case as well with no waiting time period.
New Laws Require 8 Years between Successive Chapter 7 Cases
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA) extended the time periods between multiple bankruptcy cases and changed the rules. Under present law, a chapter 7 debtor cannot be granted a discharge if a discharge was received within 8 years of the pending chapter 7 bankruptcy. Therefore, there is an 8 year waiting period between chapter 7 cases.
6 Years between Prior Chapter 13 Bankruptcy and New Chapter 7 Bankruptcy
If a previous chapter 13 was filed and a discharge obtained, you must wait 6 years prior to filing a new chapter 7. The waiting period is shorter between a chapter 7 filed after an earlier chapter 13 than between two chapter 7 cases.
4 Years between Prior Chapter 7 and New Chapter 13 Bankruptcy
If a previous chapter 7 was filed and a discharge obtained, you must wait 4 years prior to filing a chapter 13. The time period starts to run from the previously filed petition and not the discharge date.
2 Years between Prior Chapter 13 and New Chapter 13 Bankruptcy
A chapter 13 debtor may not be granted a discharge if the debtor received a discharge in a previous chapter 13 filed within 2 years of the pending chapter 13 bankruptcy. Thus, there is a two year waiting period between two chapter 13 cases.
The options with respect to re-filing a new bankruptcy case have changes greatly by BAPCA. It is critical to consult with a qualified bankruptcy attorney to review your options. Contact one of our New Jersey or New York bankruptcy attorneys to discuss how to best proceed.
Our law firm offers bankruptcy solutions and legal strategies to clients throughout cities and towns of New Jersey, including but not limited to Wayne, Hoboken, Newark, Jersey City, Paterson, Orange, West Orange, South Orange, Irvington, Belleville, Maplewood, Clifton, Wayne, Passaic, Fort Lee, West New York, Morristown, Guttenberg, Union City, Weehawken, North Bergen, Paterson, Hackensack, Englewood, Livingston, Bloomfield, Little Falls, Hillside, Union, Kearny, Harrison, Fairfield, Caldwell, Garfield, Lodi, Totowa, Bayonne, North Bergen, Weehawken, Union City and Secaucus, and Passaic County, Hudson County, Essex County, Bergen County, Union County, Sussex County, New York, Manhattan, New York County, Bronx County, Brooklyn, Long Island, Queens and Staten Island.
