QUESTION
Can bankruptcy be filed due to a divorce if there was a bankruptcy already filed 5 years ago?
Asked on May 30th, 2013 on Bankruptcy - Colorado
More details to this question:
My son's wife put him in debt and they consolidated in a refinancing of their home and then ended up with foreclosure and bankruptcy. She seemed to be doing a lot better for awhile, but then unknown to him, she buried him again and then decided she didn't want him anymore. They are going through a divorce and the debt is more than he can handle. Is there any relief for him due to the divorce? He is also close to losing his job due to the stress and complications of the divorce. I was hoping that there were some exceptions to the 7-year rules for divorces or extenuating circumstances when someone else puts you into debt without even your knowledge. Please advise. Thank you.
13 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Jun 04th, 2013 at 9:35 AM
A debtor is only eligible for Chapter 7 Discharge once every eight (8) years, with the date of filing (not date of Discharge) being the triggering date. There is no "hardship" exception to this time frame. Your son would be eligible for a Chapter 13 Discharge and certainly could file a Chapter 13 case now, although his unstable employment situation could make a Chapter 13 filing problematic. Your son should contact competent bankruptcy counsel to discuss this matter.
Answered on May 31st, 2013 at 11:15 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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There is no 7 year rule. The time between chapter 7 discharges is 8 yrs from filing date to filing date. There are no exceptions for divorce as there are none for cancer, strokes, loss of overtime, flesh eating bacteria disease, unemployment or any of the myriad of reasons that compel people to file a bankruptcy. Divorce even a complicated one is no more worthy for an exception.
Answered on May 31st, 2013 at 11:14 AM
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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He can file a chapter 13 because it has been over 4 years, and if he makes three years worth of payments, he will get his discharge. Otherwise, he will have to wait 8 years because in 2005 Congress changed it from 7 to 8 years.
Answered on May 31st, 2013 at 9:14 AM
General Practice Attorney serving Coeur d'Alene, ID
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Michael B. McFarland, PA
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The limit is 8 years between bankruptcy filings for Chapter 7 (used to be 6). A chapter 13 can be filed 4 years after a chapter 7, but a person needs some form of regular income. Your son should arrange for an appointment with an experienced bankruptcy attorney - before the divorce is final - to make sure the divorce decree does not saddle him with non-dischargeable debt.
Answered on May 31st, 2013 at 9:13 AM
Chapter 13 Bankruptcy Attorney serving Beaverton, OR
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Law Offices of Alexzander C. J. Adams, PC
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You can file under Chapter 13 of the bankruptcy code for consumer debts 4 years after the Chapter 7. There are also much stronger protections for a divorced debtor through Chapter 13 than through Chapter 7.
Answered on May 31st, 2013 at 2:50 AM
You have to wait at least eight years, not seven years, between chapter 7 bankruptcy filings. There are absolutely zero exceptions to that rule. He may decide to look into Chapter 13 as an available option.
Answered on May 31st, 2013 at 2:45 AM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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No. you have to wait 8 yrs from the date of discharge of the prior bankruptcy.
Answered on May 31st, 2013 at 2:44 AM
Your son will not qualify for a discharge for 8 years after he filed his previous bankruptcy (if he received a discharge). He may be eligible for bankruptcy protection in Chapter 13, which will require him to make monthly payments on his debts.
Answered on May 31st, 2013 at 2:42 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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It is an 8 year rule, but only for chapter 7 first time and chapter 7 second time. Have him look into filing a chapter 13. He may still get some relief, but if he is about to lose his job, I would not ever consider filing any bankruptcy case until he sets himself up in a new job, has health insurance and again has a stable income.
Answered on May 31st, 2013 at 2:42 AM
If he filed a Chapter 7 five years ago, he can now file a Chapter 13 but cannot file a Chapter 7. You have to wait 4 years after the filing of a Chapter 7 to file Chapter 13, and 8 years to file another Chapter 7.
Answered on May 31st, 2013 at 2:40 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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If a discharged was entered on the case 5 years ago, then he will have to wait for the 8 years to pass or file a chapter 13. I am not aware of exceptions.
Answered on May 31st, 2013 at 2:39 AM
Deborah F. Bowinski
If your son filed a chapter 7 last time then he must wait until at least eight years have passed from the filing date if that case before he will be eligible to file another chapter 7 case. However, he is probably eligible to file a chapter 13 bankruptcy now if he needs immediate relief. He should consult with an experienced bankruptcy attorney to review his options.
Answered on May 30th, 2013 at 7:58 PM