“Deja vu all over again” is one of the paradoxical expressions associated with the baseball legend Yogi Berra. The statement could be applicable in almost any context where someone is going through something they have been through before.
How would apply, however, in the context of a bankruptcy filing?
In the wake of the Great Recession, bankruptcy remains an important debt-relief strategy for many people in the San Antonio area and across the nation. It helps put many people back on their feet financially and gives them a fresh start.
There are some people, however, who struggle again with debt, even after a bankruptcy filing. Is it possible, in such cases, to file for bankruptcy again?
The short answer is: not right away. The law is pretty clear on the subject.
For a Chapter 7 bankruptcy, someone can file and receive a discharge only once every eight years. And that, of course, is a rather long time.
Chapter 13 bankruptcy is somewhat different. That type of bankruptcy involves working out a repayment plan for debt, typically over a three-to-five year period.
To be sure, it would be preferable not to have to consider bankruptcy again. Having to do so is not what anyone would intend coming out of an earlier bankruptcy.
But as the saying goes, “stuff happens.” All it can take for many people is one serious illness or job loss to create serious financial problems. Sure, financial counselors say everyone should have an emergency fund for such contingencies. But if you do not have such a fund, you have millions of people for company.
Source: Fox Business, “Too Soon to File Bankruptcy Again?” Justin Harelik, August 14, 2013