Any American consumer may file a bankruptcy case at any time until a bankruptcy court issues an order prohibiting it. However, consumers will only be entitled to a discharge order eliminating qualifying debt if a certain amount of time has passed between bankruptcy case filings. The following shows the required waiting periods between bankruptcy cases:

• [13→13] For those former debtors who want to file a new bankruptcy case under chapter 13 and have received a discharge in a prior chapter 13 case, two years must elapse between the first chapter 13 filing date and the new filing date.
• [7→13] For those former debtors who want to file a new bankruptcy case under chapter 13 and have received a discharge in a prior chapter 7 case, four years must elapse between the chapter 7 filing date and the new chapter 13 filing date.
• [13→7] For those former debtors who want to file a new bankruptcy case under chapter 7 and have received a discharge in a prior chapter 13 case, six years must elapse between the chapter 13 filing date and the new chapter 7 filing date.
• [7→7] For those former debtors who want to file a new bankruptcy case under chapter 7 and have received a discharge in a prior chapter 7 case, eight years must elapse between the first chapter 7 filing date and the new filing date.

There is an exception to the last rule for former chapter 13 debtors wishing to file a chapter 7. The six-year rule does not apply if, in the previous Chapter 13, the debtor paid back all or at least 70% of his or her unsecured debts in a plan proposed in good faith and implemented through his or her best efforts.

While the automatic stay protects a debtor against collection efforts by creditors during bankruptcy, if the court dismisses the first bankruptcy and the second case is filed within one year, the automatic stay in the new case only lasts for 30 days. Anyone with two or more dismissals within one year of the new case filing does not receive the benefit of the automatic stay for any time frame, not even for a 30-day period.

The solution is to file a motion requesting the court to order or extend the automatic stay in the new bankruptcy case. Grounds in a chapter 13 case could possibly be the extension of the stay is necessary for an effective reorganization. Experienced bankruptcy attorneys can analyze any debtor’s present and former cases to determine the best course of action.

These rules are conditional. The bankruptcy court can prohibit anyone from filing another bankruptcy case for a specific amount of time by dismissing a case “with prejudice.” Debtors who engage in fraud, unnecessary delay, or act in bad faith face this possibility.

Theron Morrison cares about protecting your rights. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.