Filing a Second Bankruptcy? Minnesota Second Bankruptcy Attorney

There should be no shame in filing for bankruptcy. Most of the time the thought of filing bankruptcy triggers anxiety, sadness, and sometimes shame.

Understanding the process and hiring a knowledgeable attorney should help greatly to reduce the anxiety.

The sadness will pass over time. As a person begins to rebuild his or her credit and begin fresh, any sadness will begin to lessen and eventually fade.

While some people feel shame when filing bankruptcy, there is no need to feel shame. These are difficult times. Politicians run entire campaigns these days on reversing the economic downturn and bringing jobs to Americans. These would not be popular platforms if these were not circumstances affecting so many people.

Second Bankruptcy Filings

Sometimes bad luck hits twice. Sometimes it hits more than twice. Bankruptcy is an opportunity to have a fresh start and begin rebuilding credit, but it is not a guarantee that the future will always be sunny. Sometimes people who have previously filed bankruptcy cases find themselves again needing the fresh start that comes with the conclusion of a bankruptcy case.

There are limitations, however, on when and under what circumstances a person can file a second (or third…) bankruptcy petition. Timing is one of the key issues. Whether this is your first bankruptcy or whether you have filed for bankruptcy in the past, it is important to understand the limitations your filing will have on your future ability to file.

Chapter 7

The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed.

The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case unless

  • the debtor paid all “allowed unsecured” claims in the earlier case in full, or
  • the debtor made payments under the plan in the earlier case totaling at least 70 percent of the allowed unsecured claims and the debtor’s plan was proposed in good faith and the payments represented the debtor’s best effort.

Chapter 13

A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case.