Debt is provided by lenders to people who wish to make large purchases that they couldn’t otherwise afford. For example, people may go into debt for a home or car or use a credit card to buy food, clothing or electronics. But, people also suffer from unexpected debts, such as medical bills
Too much debt can cause problems for people. Debtors may struggle to pay off their debt if they face late fees and high interest rates. People who struggle with debt often have more options than they realize. Two common ways people resolve their debt obligations are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy allows people to resolve large amounts of debt. Chapter 13 bankruptcy allows people to reorganize their debts so that payments are easier. It’s important for people to know that there is no limit to the number of times bankruptcy can be filed. However, there are waiting periods between one filing and the next.
Wait times before filing for Chapter 7 and Chapter 13 bankruptcy
It’s not uncommon for people to build up debt more than once in their lives, especially if they’re unlucky enough to have health issues, go through a divorce or simply experience job loss or business failures. People who have filed for bankruptcy in the past may try to file again. However, debtors will have to wait before they can file for bankruptcy again. Here’s how long it may take to file for bankruptcy:
- It must be two years before someone can file for Chapter 13 bankruptcy after a previous filing for Chapter 13
- It must be four years before someone can file for Chapter 13 bankruptcy after a previous filing for Chapter 7
- It must be six years before someone can file for Chapter 7 bankruptcy after a previous filing for Chapter 13
- It must be eight years before someone can file for Chapter 7 bankruptcy after a previous filing for Chapter 7
Filing for bankruptcy is often a complicated process. People looking to resolve their debt obligations may need to reach out for legal help to learn about their options.