While you can file for bankruptcy multiple times, there are conditions that apply. A prior discharge of debt or prior dismissed cases impact timing and what type of bankruptcy you are eligible for.
Understand the Basics of Bankruptcy in Utah
Bankruptcy can be a difficult topic to approach, but it’s important to understand the basics if you find yourself in financial trouble in Utah. Filing for bankruptcy can provide relief from overwhelming debt, but it’s essential to choose the right option for your situation.
- A Chapter 7 case is often referred to as “liquidation” because it involves selling off assets to pay off debts. Although most assets are protected.
- A Chapter 13 case involves creating a repayment plan over the course of three to five years to pay some portion of debts.
It’s important to note that not all debts can be discharged in bankruptcy, such as most student loans, taxes and support. Understanding the nuances of bankruptcy law in Utah can be overwhelming, but seeking guidance from a bankruptcy attorney can make all the difference in starting anew financially.
How Often Can You File for Bankruptcy in Utah?
Declaring bankruptcy can seem like an overwhelming decision, but sometimes it’s the best way to get a fresh start financially. However, you need to understand the process and the consequences before filing.
One of the most common questions people ask is how often they can file for bankruptcy. If you’re in Utah, the bankruptcy discharge rules state that you can file for a Chapter 7 bankruptcy once every eight years from the date you filed the last Chapter 7 petition. That means the clock begins ticking the moment you file your previous bankruptcy petition. It’s crucial to consult with a bankruptcy lawyer to ensure that you fully understand your rights and responsibilities.
Can You File Multiple Chapter 7 Bankruptcies?
If you receive a discharge of debt from a Chapter 7 filing, then you cannot file again until eight years have passed from the previous filing date.
Can You File Multiple Chapter 13 Bankruptcies?
If you receive a discharge of debt from a Chapter 13 filing, then you cannot file again within two years from the previous filing date. Since Chapter 13 involves a repayment plan that spans three to five years, people don’t usually run into the problem of needing to file again within two years.
Can You File Chapter 7 and Chapter 13 Bankruptcies Successively?
If you’ve received a discharge of debt under Chapter 13, you cannot file and receive a discharge in Chapter 7 until six years have passed from the Chapter 13 filing, with some exceptions..
On the flip side, if you received a discharge of debt under Chapter 7, you cannot file and receive a discharge in Chapter 13 until four years have passed from the Chapter 7 filing. But there are still options to file sooner if necessary.
If your debt hasn’t yet been discharged, then you can refile for additional bankruptcy without any time limit.
Permission to file may be granted or denied by a court, especially if you’re involved in fraudulent activities. To understand whether or not you’re eligible to file multiple bankruptcies, talk to the professionals at Rulon T. Burton today.
Consequences of Frequent Bankruptcies in Utah
3 Mistakes People Make Filing for Bankruptcy
Frequent bankruptcies can have a significant impact on individuals and businesses. When individuals declare bankruptcy, it can have a lasting effect on their credit scores and financial futures, making it more difficult for them to secure loans or credit in the future. However most people find the bankruptcy improves their credit faster than their current situation.
Multiple or frequent bankruptcy filings can also disrupt the automatic stay, which requires creditors to stop contacting you in order to collect debt. In Chapter 7 bankruptcy, the automatic stay is in effect until all debts have been discharged and the case is closed. In the case of Chapter 13 bankruptcy, the stay is in effect for the span of the bankruptcy (the length of time repayments are in process).
There is no automatic stay if a debtor has had Chapter 13s dismissed twice within one year.
Benefits of Filing Bankruptcy in Utah
Filing for bankruptcy can provide benefits like stopping creditor harassment, preventing wage garnishment, and even saving your home from foreclosure. Additionally, filing for bankruptcy can help you take control of your financial situation and begin to rebuild your credit score. While filing for bankruptcy can seem daunting, the benefits can be life-changing for those facing financial hardships.