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Previous bankruptcy filing may impact current filing

On occasion, it can seem like some Colorado residents have all the good luck. On the other hand, others seem to continually run out of luck, despite their best efforts. This is particularly true when it comes to finances, as even the best-intentioned of individuals can struggle to make it by.

As discussed previously in this blog, one option for individuals who are deep in debt is Chapter 7 bankruptcy. By filing for Chapter 7, individuals can usually achieve a fresh financial start, free of the debt that has plagued them for years.

On occasion, however, individuals may find themselves back in financial trouble even after a bankruptcy. These individuals may wonder whether they are eligible to file for bankruptcy again, and what impact the previous bankruptcy may have on their current filing.

Typically, a person can only file for Chapter 7, and receive a discharge through Chapter 7, once every eight years. Similarly, if a person received a discharge under Chapter 13, he or she cannot file for Chapter 7 for at least six years. These time limitations run from the date the person filed for the previous bankruptcy.

There are also limitations on filing for bankruptcy if the person had a previous filing dismissed with 180 days prior to filing, based on certain reasons. For example, if the filing violated a court order or was fraudulent, it may present a bar to the current filing.

For many individuals deep in debt, the above issues are not a problem. For those who have previously filed for bankruptcy, however, it is essential to get in touch with a qualified bankruptcy attorney to determine whether or not they are eligible to file again.

Source: Fox Business, "Too soon to file for bankruptcy again?," Justin Harelik, Aug. 14, 2013