How Often Can You File for Bankruptcy in Arizona?
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We live in a world where financial troubles are unlimited. One may go through thick and thin with severe financial problems and substantial debt at some point, and when they think the storm is over, similar unexpected challenges emerge.
When you face financial issues for the first time, you may opt to file for bankruptcy to get relief from the overwhelming debts to get your financial situation back on track. However, what happens when faced with financial troubles again? Are you eligible to file for bankruptcy once more? How many times can you do so, and how frequently?
You can file for multiple bankruptcies. However, there are certain time restrictions you need to wait before you can seek debt relief again in Arizona. Let’s take a deeper look at these restrictions, and if you need to discharge your debts, always consult a bankruptcy attorney who can advise you and ensure that you follow all the bankruptcy laws.
How Frequently Can You File for Bankruptcy in AZ?
While it is not advisable to declare bankruptcy as often as you wish, there are no restrictions on the number of bankruptcy filings you can make. However, you must meet specific time requirements for discharging your debts. Whether you can file for another bankruptcy in Arizona and obtain a discharge depends on the following factors:
- The bankruptcy you filed previously
- The bankruptcy type you wish to file now
- How your bankruptcy was finalized (either as a discharge or a dismissal)
- The time you previously filed
The two most common bankruptcy types individuals file are Chapter 7 and Chapter 13, so we will focus on these. However, if you are a business and wish to learn more about Chapter 11, do not hesitate to contact us.
Chapter 7 Bankruptcy
This is the most common type of bankruptcy among individuals. It involves liquidating non-exempt assets to pay off creditors. Chapter 7 is a good option if you cannot repay your debts and risk creditors suing you. If you have filed for Chapter 7 previously and received a discharge, you have to wait for eight years from the date you filed to file for Chapter 7 again to receive a discharge.
If you wish to file for Chapter 7 now but have previously filed and received a discharge for Chapter 13, you need to wait six years to file Chapter 13 bankruptcy. However, the six-year limit can be waived if, during your chapter 13, you managed to pay all or at least 70% of your unsecured debts or the plan was in good faith, and you put your best effort into repaying.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also referred to as a reorganization plan. It reorganizes your debts so that you get more time — usually three to five years — to pay back what you owe. It is a good option where you can repay your debts within a period of three to five years, where you have cosigners to your debts, or if you did not qualify for Chapter 7.
If you had previously filed and received a Chapter 13 discharge, you must wait two years before you can seek debt relief again using Chapter 13. Since the debt repayment plan usually takes three to five years in this chapter of bankruptcy, you can immediately file a second chapter 13 once your first one is closed.
Another scenario is where you previously filed and received a discharge for Chapter 7 but are now seeking to file Chapter 13. In such a case, you must wait four years from when you filed Chapter 7 before you can seek debt relief using Chapter 13. You may seek Chapter 13 if your income has increased or when you want to catch up on missed mortgage payments or to pay priority debts.
Dismissed With Prejudice
You may be prohibited from filing another bankruptcy if the court finds out you are trying to abuse the bankruptcy system or failed to follow the court’s orders. When this happens, the court may prevent you from filing another bankruptcy for a longer time than discussed above. The court may also prohibit you from ever discharging debts that might have been discharged in a case dismissed with prejudice.
Should You File for Bankruptcy Another Time?
Some financial troubles can push you to the limit, making you consider declaring bankruptcy again. However, if you need to file another time, work with an experienced bankruptcy attorney to review your options, and advise you so that you can make an informed decision. Even if you do not file, you will have received advice on the best course of action for your situation.
Talk to an Experienced Tucson Bankruptcy Attorney Today
Filing for bankruptcy can be overwhelming, but we are here to help. Our experienced Tucson bankruptcy attorneys can review your options based on your financial situation and help you receive the maximum debt relief possible. Contact us today at (520) 791-2707 to book your free consultation.