Student Loans And Bankruptcy

This turbulent economy has not been very forgiving for many Americans. Thousands of hard-working people have been borrowing more money to make ends meet and keep their house out of foreclosure. Many people are now suffering from the devastating effects of overwhelming debt they cannot afford to repay. Fortunately, bankruptcy is one option that can provide relief from such debt. But what happens to those that have already filed bankruptcy in the past and are now in need of help once again?

Second Chances

Fortunately, the law does not limit how many times a person can file for bankruptcy. However, there are laws that dictate how often a person can file for bankruptcy and how often they can receive a discharge of their debts. There are also rules as to which type of bankruptcy you may file for after you have filed in the past.

Chapter 7

If you filed a Chapter 7 case in the past and obtained a discharge of your debts, you will be required to wait 8 years to obtain another Chapter 7 discharge. If your previous case was a Chapter 13 case, you only need to wait 6 years to receive a discharge for a Chapter 7 bankruptcy. However, if you did not receive a discharge in your previous case, you can file again at any time.

Chapter 13

If you filed a Chapter 7 case in the past and obtained a discharge of your debts, you will be required to wait 4 years to obtain a Chapter 13 discharge. If your previous case was a Chapter 13 case, you only need to wait 2 years to receive a discharge for a Chapter 7 bankruptcy. Again, you are free to file again at any time if you did not receive a discharge under your previous case. However, if your case was dismissed due to failure to comply with a previous Chapter 13 repayment plan, you may be required to wait before filing. This period of time may be specified by the court upon dismissal of your previous Chapter 13 case.