Bankruptcy is a difficult process the first time around, and many people don’t realize you can file again a second time. For people who’re considering filing a for bankruptcy protection a second time, we want you to know that it’s possible. However, there are some things you need to keep in mind before you begin, becasue there are requirements involved in a second bankruptcy filing in Michigan!
If you filed Chapter 7 the first time:
- If you filed Chapter 7 bankruptcy the first time, you are required by law to wait a full eight years before you may file Chapter 7 again.
- You may file Chapter 13 at any time after filing Chapter 7, however you have to wait a full four years if you want to be able to receive a discharge under Chapter 13.
- If you choose to file chapter 13 after filing chapter 7, but choose not to wait the 4 years, you may still benefit in other ways, like being able to stop foreclosure on your home, and pay off your debts with a more affordable payment plan.
If you filed Chapter 13 the last time:
- If you filed Chapter 13 relief last time, you are required to wait two years before you may file for Chapter 13 again,
- If you filed Chapter 13 bankruptcy the first time, and you now want to file for Chapter 7 bankruptcy, you are required to wait for six years from the date of first filing.
- The only exception to that rule is if your prior Chapter 13 paid the full 100% of your unsecured claims, or 70% of your unsecured claims and was done in good faith with the best of your efforts.
You will have to fulfill the same obligations as the first time:
As with all bankruptcies in Michigan and elsewhere in the USA, there are certain requirements that everyone is required to fulfill. If you are filing for bankruptcy a second time, you will still have to fulfill these requirements again. This includes:
- You will need to complete a credit counseling class before your petition is filed,
- You will have to have a bankruptcy hearing,
- And you will also be required to complete a financial management class after your hearing is over.
Filing for bankruptcy the second time may be more challenging.
The bankruptcy process is complex, especially the second time around. In addition to the fact that you’ll need to meet the requirements for a second filing, your creditors might be more difficult to work with this time. In addition, the court will do a thorough review of your finances before approving a second bankruptcy filing.
If you or a loved one are considering filing for bankruptcy a second time and you live in Mid Michigan, you are going to need an attorney who understands the process, and can help you prepare for what’s ahead. At The Kronzek Firm, we have decades of experience in handling bankruptcies, including second filings. Our skilled bankruptcy attorneys can provide valuable advice, and guide you through the complexities. Call our Lansing office at 517 886-1000 to speak with an experienced bankruptcy attorney today.