For individuals who haven’t filed bankruptcy, you may be asking yourself, “Why would anyone want to file bankruptcy in Texas more than once?” We’ll address that question later, however, sometimes situations can (and do) arise, where an individual or a business has a strong need to eliminate debt utilizing the US Bankruptcy Code a second or even third time after previously filing. The key to understanding how many times you can file bankruptcy in Texas is that there is no limit on how many times you can file bankruptcy, but there is a time limit set on bankruptcy discharges. The bankruptcy code has some specific weight requirements before you can receive a second discharge.
Bankruptcy Discharge Waiting Period – Ch. 7
Chapter 7 bankruptcies, for those whose income qualifies them, is a fast and usually pain-free process. In around 4 months, you can knock out many unsecured debts using Chapter 7 bankruptcy. The catch is that you can only receive a Chapter 7 discharge every eight years. If you previously filed Chapter 13 bankruptcy and now want to receive a second discharge, this time with Chapter 7, you must wait a total of six years. The waiting period to obtain a commercial loan is significantly shorter (around 2-3 years) after receiving a Chapter 7 discharge, but this, of course, depends on the lender.
Bankruptcy Discharge Waiting Period – Ch. 13
The waiting period you must observe before receiving a second Chapter 13 discharge is two years. The reason that the elapsed period between Chapter 13 bankruptcy discharges is shorter is due to the length of time it typically takes to complete a Chapter 13 bankruptcy reorganization. It may take individuals up to five years to gradually pay back debt over the course of the Chapter 13 process. If you received a Chapter 7 discharge previously and now want to file Chapter 13, you must wait a total of four years.
Bankruptcy is not only an excellent way to eliminate debt but is also designed for individuals to exit bankruptcy more fiscally minded and responsible. Barring this, life happens, and even responsible individuals can be struck with a divorce, job loss, medical bills, or other unexpected expenses or reductions in income. One of the most important historical factors of successfully discharging unsecured debt using the bankruptcy system is the decision to hire a bankruptcy attorney. It’s proven that hiring a professional from a bankruptcy law firm drastically enhances your success in discharging your legal obligation to pay debts. Contact a Texas Bankruptcy attorney to help ensure your next bankruptcy has a favorable outcome.