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Multiple Filings May Account for Predicted Rise in Bankruptcy Cases

Multiple Filings May Account for Predicted Rise in Bankruptcy Cases

Recent economic forecasts for Southwest Ohio predict slow and steady growth in 2013. Several factors may support the economists’ predictions including, but not limited, to job growth at the same rate as 2012, a slight decrease in unemployment rates and improvements in consumer spending. Fewer bankruptcy fillings also serve as an indicator of economic growth. In March, the Administrative Office of the U.S. Courts reported a 14.4 percent drop in Bankruptcy filings.

Despite the improving economy, some bankruptcy experts expect an increase in bankruptcy filings in 2013, including some filers in 2013 who may have filed bankruptcy previously. Although the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) does not set a specific amount of time to wait between bankruptcy filings, it does set a time frame for receiving a successive discharge. The time frame varies based on the type of bankruptcy you filed.

Successive discharges under the same chapter

The BAPCPA requires that debtors who received a Chapter 7 discharge to wait 8 years before filing another Chapter 7 case. Debtors who received a discharge under Chapter 13 must wait 2 years before receiving another Chapter 13 discharge.

Discharges under different chapters

The order of filing will determine the time frame for receiving the second discharge for debtors who file under different chapters and want to receive a second discharge.

Debtors who first receive a discharge under Chapter 7 can receive a second discharge under Chapter 13 after four years from the Chapter 7 discharge. Note that prior to the BAPCPA, debtors could get a discharge under Chapter 13 immediately after receiving a Chapter 7 discharge -this process was known as a “Chapter 20″.

Debtors who first filed under Chapter 13 usually can receive discharge under Chapter 7 after six years. There are two exceptions to the six-year rule:

You paid all unsecured creditors in the earlier case
You paid 70% of the claims in the earlier case and the proposed payment plan was in good faith and the plan was your best effort
Other rules apply if your Bankruptcy case was dismissed or denied. You may be eligible to file for a second discharge. If you are considering filing bankruptcy based on your financial circumstances, you should seek the advice of an experienced Dayton bankruptcy attorney.

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