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Filing bankruptcy more than once

People throughout Ohio may be able to file bankruptcy if they're struggling financially and need assistance. With the debts written off through a discharge or restructured into more affordable payment levels, people can create a more stable financial position. There are many reasons people need to file bankruptcy, including going through a divorce, the loss of a job and medical bills. These events can happen multiple times in a person's life, so an individual may need to file bankruptcy more than one time.

Individuals are allowed by law to file bankruptcy more than one time, but there are limitations that must be observed, including a waiting period between filings. In a Chapter 7, the debts are liquidated and discharged. When this type of bankruptcy is chosen, individuals must wait eight years before they can file another Chapter 7 liquidation.

The other bankruptcy option is a Chapter 13 restructuring. When people choose to restructure, there is no waiting period before they may file bankruptcy again. However, they may not be eligible to have debts discharged completely. People are required to six years after the full discharge of a Chapter 13 to file a Chapter 7. Chapter 13 bankruptcies may be filed at any time after a previous bankruptcy concludes, but people may not be eligible to have debts discharged unless the required waiting periods are observed. When filing for a Chapter 13 discharge, people must wait four years after filing a Chapter 7 and two years after a previous Chapter 13.

When someone needs a fresh financial start, bankruptcy may be the right choice. An attorney can help debtors review their situation to determine what their options are and suggest possible alternatives. Experienced bankruptcy attorneys can also provide information regarding what debts are eligible for discharge, how it will impact a credit score and other details.

Source: Ohio State Bar Association, "Bankruptcy", November 02, 2014

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