Filing for bankruptcy can be a vital lifeline for those drowning in debt. Whether you’re a Kentucky resident or a business owner, understanding the ins and outs of bankruptcy frequency is crucial. Our expert attorneys are here to guide you.
Understanding Bankruptcy Types
First and foremost, let’s delve into the primary types of personal bankruptcy:
1. Chapter 7 Bankruptcy (Liquidation): This process discharges many of your unsecured debts. However, it may require the sale of certain assets. Ideal for those with limited income and assets.
2. Chapter 13 Bankruptcy (Reorganization): This is a debt repayment plan suited for those with a regular income. Instead of selling assets, you’ll repay a portion of your debts over 3-5 years.
Bankruptcy Filing Frequency
Chapter 7 to Chapter 7: After successfully filing for Chapter 7, you’ll need to wait eight years from the original filing date to file another Chapter 7.
Chapter 13 to Chapter 13: If you’ve gone through a Chapter 13 process, a two-year wait from the initial filing date is mandatory before pursuing another Chapter 13.
Switching Between Chapters
Chapter 7 to Chapter 13: A four-year wait from the Chapter 7 filing date is typically required before filing Chapter 13.
Chapter 13 to Chapter 7: A six-year interval is necessary, though exceptions exist if you’ve repaid a significant portion of your unsecured debts under Chapter 13.
Factors to Keep in Mind
- Dismissed cases – A case dismissal might allow you to refile sooner, but reasons for the dismissal matter. For instance, failure to follow court orders could enforce a 180-day waiting period.
- Importance of discharge – The above timelines are based on filing dates, not discharge dates. Ensure clarity on this distinction.
- Multiple filings – Frequent bankruptcy filings can raise eyebrows in the court. While it’s legally possible, repeated filings might challenge your ability to obtain discharges in the future.
Knowing what assets you can protect is vital. Click here to read about Kentucky’s specific bankruptcy exemptions.
Your Trusted Louisville Bankruptcy Attorneys
Bankruptcy laws can be intricate. We believe that Kentuckians deserve legal consultation that is tailored to their unique circumstances. If you’re contemplating bankruptcy or want to know more about your options, Chris Kurtz can help you navigate all your options.
