Lincolnshire Bankruptcy Attorney Answers The Time Between Filings Question

The law with regard to Chapter 7 states that you can file a Chapter 7 bankruptcy case once every eight years if you receive a discharge in the previous case claims Lincolnshire bankruptcy attorney.  If a case goes through to completion and you receive a discharge, then you cannot file another bankruptcy case for eight years.  Many clients who I have helped in the past have come back to me for a second filing eight years after their first filing.

 There is a new wrinkle under the law with regard to the personal financial management instruction course in order to receive a discharge.  I have had several Chapter 7 clients who filed for Chapter 7 bankruptcy protection and don’t complete their case because they don’t take the two hour financial management class.  By not taking this class, they essentially have not received a discharge.

 Now this is good and bad.  The good part is they have the ability at any time in the future to file another Chapter 7 bankruptcy case; they don’t need to wait eight years.  They don’t need to wake the eight years because they didn’t receive a discharge in the prior case.  The bad news is that creditors technically do not have to wipe out the debt unless it goes to a discharge.  What I have found is that most creditors abide by the bankruptcy protection because they really don’t realize the substance of the case dismissing without a discharge.  Most creditors believe that that person has filed a Chapter 7 and doesn’t have any assets; therefore they stop the collection efforts.  It takes a savvy creditor to realize that the case has closed without a discharge and that they can still pursue the debtor in an effort to try to collect on a debt.

 

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