When Can I File Bankruptcy Again?

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There is no limit on the number of bankruptcy cases that one may file. In fact, there is no limit in between time frames to file bankruptcy. Nevertheless, if sufficient time between filings does not take place, you may be not be eligible for “discharge.”


So if a bankruptcy case is filed too soon, even though it will not be dismissed, a discharge may not take place. Why would anyone do this? Well there are several reasons to name a few.
If enough time has not taken place, but a debtor wants to eliminate their debt in a subsequent chapter 7 and has sufficient assets to do so, filing another case may be a good idea. Suppose a debtor has a messy asset(lawsuit, insurance claim, etc) but wants to use that to pay creditors. By filing another chapter 7, the trustee can liquidate that asset to pay the debts. Although the debtor may not be getting top value for the asset since the trustee only cares about getting enough money to pay the creditors, it may be worth the peace of mind for the debtor in not dealing with the asset and having the trustee in charge of converting it to dollars.

Or, maybe a debtor recently filed a chapter 7 and has remaining non-dischargeable student loans or taxes. The debtor could then file a subsequent chapter 13 and be protected for the next 5 years without any worries of lawsuits, levies, or wage garnishments, even though at the end of 5 years no discharge is entered. Then, maybe at that date, the debtor might also be eligible to eliminate the debt in another chapter 7 or 13.

In a nutshell, the time frames between discharge eligibility are as follows:

8 years between 7s. -727(a)(8)
2 years between 13s. -1328(f)(2)
4 years between a 7 and 13 -1328(f)(1)
6 years between a 13 and 7(if under 70% plan). -727(a)(9)

The time is counted from filing to filing — not from first discharge to second filing.
So don’t immediately give up on bankruptcy relief just because not enough time has passed. With a little pre-bankruptcy planing and creative filing techniques, you and your attorney can probably get you the relief you need!

Written by Michael G. Doan

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Bankruptcy and Divorce

All too often money problems lead to divorce.  So it’s normal that a bankruptcy (or two) will be part of the picture.

Should you file bankruptcy first, or wait until the divorce is filed or concluded?  A good question.  The answer depends entirely on where you live and what issues need to be resolved.

A married couple, even if they aren’t living together, can file  together.  After the divorce, they can no longer do that, so two cases might need to be filed. Thus, you can save a filing fee if you file before the divorce. But, and this is a big but, you can’t expect to maintain a Chapter 13 bankruptcy if you are divorced.  So, it’s best to talk to a competent bankruptcy attorney and be completely honest about the domestic situation before filing.  And, you might find that the attorney, upon learning that a split up is imminent, won’t represent both of you, because of the potential conflict of interest.

Additionally, if you are still living together, the income of both spouses, at least to some extent, will need to be included in the calculation of the means test to determine if a Chapter 7  is a viable alternative. So, if the combined income is too much, it might be better to wait until you have separated before filing.

Generally, there are three things that get sorted out in a divorce: property division; child custody; and spousal and child support.   The automatic stay in bankruptcy will stop any property division but won’t stop the determination of child custody or the payment of  support.  Thus, if you file for bankruptcy before the property is fully divided up, that process will go on hold for a while.  Since the determination of property rights includes the payment of debts, the bankruptcy will often help resolve some of those issues.

If your marriage is breaking up, it might be nice to clean up your debts too and get a true fresh start.

Bankruptcy Law Network

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How to get student loans forgiven

Conventional wisdom has it that student loans, whether federal or private, are impossible to walk away from. However, recent research shows that's not the case. Jason Iuliano, a Princeton political science Ph.D. student who also has a degree from Harvard Law School, did a comprehensive search of bankruptcy cases in which borrowers sought to discharge student loans; he found that in four out of 10 cases, judges erased all or part of the debt. Here's the rub: Only 0.1 percent of student loan borrowers who declared bankruptcy actually tried to get their loans forgiven!

If you or a family member are struggling under financial pressures and have student loan debts that you can't pay, you should first pursue a break from payments, known as deferment or forbearance, or an income-linked repayment plan such as Pay as You Earn, which I discussed in a previous column. However, here's what you need to know about taking the last resort to get rid of your debts.



Student loans aren't dischargeable under normal bankruptcy proceedings. You have to file a separate suit, called an adversary proceeding, that is like a mini-trial within a bankruptcy case.

Most courts use something called the Brunner test to decide if your student debts cause you "undue hardship," which is necessary for getting all or part of the loans written off. The Brunner test requires proving three things in your adversary petition: first, that you cannot maintain a minimal standard of living for yourself and your dependents while making your loan payments; second, that this situation is likely to persist (sometimes called the "certainty of hopelessness"); and third, that you have made a good-faith effort to repay your loans. Typically, the lender, like Sallie Mae, offered the borrower a settlement out of court. He believes that if more people were aware of the adversary proceeding option, there would be far more cases of getting federal loans forgiven.

If you have private (sometimes called "alternative") student loans, Richardson has a final piece of advice. Private lenders are usually pretty unwilling to negotiate. "You have two choices: pay or not pay," he says. And the loans, like federal loans, are not discharged in bankruptcy. However, if you really can't pay, the lender will have to take you to court and get a judgment in order to collect. After a few years, if the bank doesn't take the time to pursue you, the statute of limitations on the unpaid debt will run out. And seven years after you first go into default, the incident should be expunged from your credit report. In no way is this a recommended course of action, but if you truly have no other choice, it's good to know that your life doesn't have to be over because of an ill-considered student loan.

By Anya Kamenetz, Tribune Media Services | The Savings Game

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Credit Repair Scams

Common Credit Repair Scams

Getting a New Social Security Number - Individuals are only permitted to have one Social Security number. It is against the law to use a different Social Security number to create a false identity.

Getting a Federal Employer Identification Number (abbreviated as EIN or FEIN) - Proponents of this "file segregation" scam claim that you can obtain a federal tax ID number, as if you are a business, then get a clean credit record under that tax ID number. It is against the law to use an EIN to set up a false identity. Further, a new credit report under an EIN will not show any credit history. It is unlikely that a creditor would regard a new business with no credit history as a good credit risk.

Challenging Every Negative Entry on a Credit History - As a general rule, it is lawful for credit agencies to keep accurate records of negative entries on your credit history for up to seven years, and to keep records of any bankruptcies for up to ten years. There are certain circumstances where truthful negative information may be reported beyond those time periods. As much as you do not like having negative information on your credit report, your ability to object to inaccurate information is not meant to be a license to harass honest creditors in an effort to remove accurate negative entries.

Common Misrepresentations by Credit Repair Companies

"If you have declared bankruptcy, you can't get credit for ten years" - The truth is you can start building a positive credit history as soon as your bankruptcy is resolved. While creditors will be cautious at first, you can gradually demonstrate your fiscal responsibility, and build a history that can lead lenders to view you as a good credit risk long before the bankruptcy drops from your credit history.

Warning Signs of a Bad Credit Repair Company

Do not use any credit repair company that doesn't follow industry standards or regulations.
Do not use a credit repair company that offers to "wipe out bankruptcies", to remove accurate negative information from your credit history, or to obtain credit for you regardless of your credit history.
Do not use a credit repair company that promises to exploit "secret" or "little known" loopholes in the system to remove information from your credit history.
Do not use a credit repair company unless it provides a written disclosure of your rights in relation to your credit history before asking you to sign a contract. The contract should include all the terms and conditions of payment, a detailed description of the services to be provided, including any guarantees of performance and an estimate of how long it will take to perform the contract. The agreement should also include a right to cancel lasting at least three days, in case you have second thoughts.
Do not use a credit repair company that attempts to charge money before it has performed the credit repair services.
Do not use a credit repair company that discourages you from directly contacting the major credit bureaus.

Removing Inaccurate Information From Your Credit History

Although the process can be slow, it is relatively simple to object to inaccurate information on your credit history.

After you obtain a copy of your credit report, review it for any inaccuracies. If you don't understand some of the entries on the report, ask the credit reporting agency what they mean.
Once you have identified any inaccurate entries, notify the credit bureau about the entries you believe to be in error, providing as much information as you can about the error. For example, if you paid a debt which is reflected on your credit report as delinquent, you may wish to provide a copy of a cancelled check reflecting payment. Once you make the report, the credit agency is responsible to investigate any errors at no expense to you, and to either verify the information in the credit report or to remove any information that is inaccurate or which cannot be verified.
You may also contact creditors directly, to let them know of any errors, and to ask that they correct their records and forward accurate information to the credit reporting agencies.
If you are unable to obtain the removal of information from your credit report, and still object to its inclusion, you may submit a written objection (up to 100 words in length) to the credit reporting agency, explaining your side of the story. The explanation will be included in your credit report, and will be distributed to anybody who obtains a copy of the report.

By Aaron Larson

Wage Garnishment Must Stop After a Bankruptcy Case is Filed; You Might Even be Able to Get Money Back

Bankruptcy Stops Wage Garnishment

The minute a bankruptcy cases filed,an injunction called the automatic stay is issued, which prohibits creditors from trying to collect on debts that were included in the bankruptcy. The Ninth Circuit Court of Appeals has called the automatic stay “one of the most important protections in bankruptcy law.” The automatic stay is self-executing, effective upon the filing of the bankruptcy case and requires that all collection calls, lawsuits and garnishments must stop immediately. Creditors who continue with collection efforts face stiff fines and penalties from the bankruptcy court. Section 362(k) of the Bankruptcy Code provides:

An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.

Reference National Bankruptcy Forum

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Can I be Denied a Job Because of Bankruptcy?

The Answer May Hinge on Whether Your Employer is Public or Private

I Need to File Bankruptcy, But I’m Worried About My Job…Can I Get Fired?

If you have a job, need to file bankruptcy, and are worried about getting fired because of it, you probably shouldn’t be. The bankruptcy code prevents employers from firing you just because you have filed for bankruptcy. However, if you are a job seeker, need to file bankruptcy, and are worried about being denied a job, you might have cause for concern. Under the current state of the law, a private employer can deny you a job if you are currently in or have filed for bankruptcy, whereas a public employer cannot. Section 525(a) of the Bankruptcy Code provides:

a governmental unit may not . . . deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title [Title 11] or a bankrupt or a debtor under the Bankruptcy Act 

Notice that section 525(a) applies only to public employers. The behavior of private employers is governed by section 525(b) which prohibits discrimination based on bankruptcy, but does not contain the language of 525(a) which addresses denying employment to a debtor based on a bankruptcy filing. The bankruptcy code has this to say about discrimination by private employers:

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt

Reference National Bankruptcy Forum

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5 Ways to Deal With Financial Stress

1. Exercise
It may strike some as a bit strange that exercise would be first on the list. However, it’s really a simple equation: exercise relieves stress. Things always look brighter after a good workout. According to the Mayo Clinic, an exercise routine helps to increase the production of your brain’s feel-good neurotransmitters, called endorphins. Any exercise that gets your heart rate going will do: yoga, squash, tennis, running, basketball etc. Regular exercise can increase self-confidence and lower the symptoms associated with mild depression and anxiety. Exercise also can improve your sleep, which is often disrupted by stress; ever stay up at night wondering how you’ll pay the bills?

2. Prayer/Mediation/Mindful Living
Regardless of religious affiliation, a back to basics spiritual approach can help cope with stress. Take the time to focus on your breath. Ask yourself: of all my problems, what problem am I confronting NOW. Although it can be difficult, try not to immerse yourself in too many scenarios about the future. Deal only with what is on your plate, one day at a time. As Mark Twain famously said: ”I am an old man and have known a great many troubles, but most of them never happened.”


3. Full Disclosure
A routine bankruptcy case is stressful enough, believe me, you don’t want to see a “problem” case. For the debtor, bankruptcy is all about their debt. However, it is important to keep in mind that the Court and trustee are more concerned with assets. This post is intended to aid in relieving stress, so I won’t go through the parade of horribles that will ensue if your schedules are filed sans assets. Just follow one rule: tell your bankruptcy attorney about everything you own, you’ll be glad you did.

4. Don’t Go Through it Alone
One very common source of stress for bankruptcy debtors is shame. Many feel that bankruptcy represents failure. This simply isn’t true. Bankruptcy is a legal, ethical and entirely legitimate process which allows for a fresh start. Taking advantage of bankruptcy under the right circumstances is nothing to be ashamed of. To the contrary, it’s a sophisticated move, utilized often by multinational corporations and celebrities. Discussing your concerns with a close friend or family member will allow for an outlet to all the pressure that is building inside of you. Let it out! Worrying about what other people think should be last on your menu of concerns during a financial crisis.

5. Develop a Plan of Attack for Life After Bankruptcy
This is a big one. Putting together a plan of attack for your life after bankruptcy will be important, not only to relieve stress, but to thrive in your new debt free life.  Identify the circumstances that led to bankruptcy, and if possible, take steps to remedy them. Rebuilding credit will be a key, start by taking a look at the articles in the Related Posts section below. Knowing that you have mapped out the beginnings of a comeback will allow you to sleep better at night.

Lastly, try to remember that, while the bankruptcy process is not easy or fun, it has helped millions of people in this country get out from under impossible debt. Talk to a good bankruptcy attorney, disclose all of your assets, breathe, exercise, plan and you’ll get by……with a little help from your friends. Good luck!

Reference Bankruptcy Forum

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