Share post
Debt Consolidation Forums Bankruptcy Chapter 7 and Chapter 13 forums

Does anyone really know the rule for Chapter 13????

member profile picture
Posts: 742
Credits: 0
[Donate]

Ok so I'm trying to find out if you can file Chapter 13 after having a previous Chapter 7. I've called 3 lawyers offices and 2 said you can't file for 4 years after your discharge and the other said you can file at anytime, you just can't get a discharge until after 4 years from the Chapter 7. I was surfing around the net today and I found a couple of varing answers again, I've listed what I found below. Does anyone know for sure what the rule is???


From the Internet:
Did you have a Chapter 7 discharge within 4 years of filing a new Chapter 13? Then you won’t get a Chapter 13 discharge after you finish your payment plan.

Did you get a Chapter 13 discharge within 2 years of filing a new Chapter 13? Then you won’t get a Chapter 13 discharge after you finish your payment plan.

Advantages to Each
So does that mean I can file for Chapter 13 as often as I want?
You can file, but under the new bankruptcy law, it may not be possible to complete the bankruptcy and be discharged from your debts. A Chapter 13 debtor will be denied discharge if he or she received a discharge in a case filed under Chapter 7, 11, or 12 during the previous four years, or in a Chapter 13 case filed during the previous two years. The advantage of being able to refile under Chapter 13 (even if debtors are not permitted discharge) is that debtors are given the temporary protection of the automatic stay. The benefits of having a period of time—up to five years—to deal with secured debt, a time in which unsecured creditors must suspend their collection efforts, may outweigh not being able to get a discharge at the end of that period.


Chapter 13 cannot be filed unless:
The debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or
the debtor received a discharge under Chapter 13 more than two years ago.

The Chapter 13 Discharge
The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Therefore, debtors should consult competent legal counsel prior to filing regarding the scope of the chapter 13 discharge.
A chapter 13 debtor is entitled to a discharge upon completion of all payments under the chapter 13 plan so long as the debtor: (1) certifies (if applicable) that all domestic support obligations that came due prior to making such certification have been paid; (2) has not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 cases and four years for prior chapter 7, 11 and 12 cases); and (3) has completed an approved course in financial management (if the U.S. trustee or bankruptcy administrator for the debtor's district has determined that such courses are available to the debtor). 11 U.S.C. § 1328. The court will not enter the discharge, however, until it determines, after notice and a hearing, that there is no reason to believe there is any pending proceeding that might give rise to a limitation on the debtor's homestead exemption. 11 U.S.C. § 1328(h).


See what I mean??? I'm wondering if you can file and get the auto stay and be approved for a payment plan, then once the 4 years have past are you eligable then for discharge?




so I'm assuming even though you don't get the discharge it will seriouly reflect negetive on the CBR? Which at this point doesn't really matter I just wondered. One more question, while in the chapter 13, is a person allowed to get student loans? The reason I'm asking is I'm also getting pressured by my job to finish my degree, they will only pay half, so at this point student loans would be my only option, however if I'm not allowed to take any out, not sure how to pull that off. Thanks

Sub: #11 posted on Tue, 09/02/2008 - 04:53

lmale lmale

(Posts: 742 | Credits: )

Bk will report negatively. If you can, I would consider a dmp plan. I know you can get a student loan if in a DMP, but not sure about Bk. I THINK you can, just not 100% sure. I would call a Bk attorney/paralegal and ask them.

Sub: #12 posted on Tue, 09/02/2008 - 04:56

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

I'm calling today, thanks for all you help!! Reny

Sub: #13 posted on Tue, 09/02/2008 - 04:59

lmale lmale

(Posts: 742 | Credits: )

Pls let me know what they say! Good luck!

Sub: #14 posted on Tue, 09/02/2008 - 05:06

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

Imale, instead of BK, the dmp program usually works with your creditors to reduce interest rates and fees. Typically you will pay them back over 3 to 5 years. Very similar to a Chap 13 BK but w/o the permanent derogatory mark on your CR. While in the program, your creditors may report that you are in a DMP, but when completed, any notation is removed and your credit should have recovered perfectly if you make all your payments on time. Usually you only pay a small enrollment fee (ie $50) then a monthly fee of $50.

Are you current on your bills or past due? Are you being harrassed by collectors and that is why you are thinking about BK? Just wondering why you think BK is your main option?

Sub: #15 posted on Tue, 09/02/2008 - 07:12

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

Desperately, I think she has been in a dmp with T & C and recently decided that it wasn't working, so she is now exploring other options.

Reny, keep us posted, and let us know what you find out today about the Chapter 13!

Sub: #16 posted on Tue, 09/02/2008 - 07:16

alias1958 alias1958

(Posts: 1230 | Credits: )

Thanks Alias!

Sub: #17 posted on Tue, 09/02/2008 - 07:19

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: )

Anytime!

Sub: #18 posted on Tue, 09/02/2008 - 07:22

alias1958 alias1958

(Posts: 1230 | Credits: )

Update: I have appointment tomorrow at 11. They would not tell me over the phone if I could or not, I don't really understand why it seems pretty cut and dry to me, but ok...So I have to have a "free consult" then they will tell me if I have any options.

Sub: #19 posted on Tue, 09/02/2008 - 16:59

lmale lmale

(Posts: 742 | Credits: )

Good luck, and let us know how it goes!

Sub: #20 posted on Tue, 09/02/2008 - 20:44

alias1958 alias1958

(Posts: 1230 | Credits: )

Attachment
More information
  • Files must be less than 500 MB.
  • Allowed file types: txt pdf jpg jpeg png.


Page loaded in 0.777 seconds.