I FILED A CHAPTER 7 IN 2012, BUT NOW HAVE NEW CREDITORS PURSUING ME. CAN YOU HELP ME?
Mr. Steven Taieb has helped lots of clients over the years that got a Chapter 7 discharge and then due to problems outside of their control, got into financial problems again.
Under the law you are only allowed to file a Chapter 7 every 8 years. However, the law allows you to file a Chapter 13 to deal with creditors who are pursuing you. This will create a new stay and stop the creditors from pursuing you. As long as you file a Chapter 13 more than 4 years after you filed the Chapter 7, all the unsecured creditors listed in the Chapter 13 will be discharged in the Chapter 13, as long as you complete the plan. If you file a Chapter 13 within 4 years of the date you filed a Chapter 7, the stay will still go into effect and stop the creditors from pursuing you but the debts will not be discharged so you would have to pay all your creditors in full.
However, in most cases, except where there are numerous Chapter 13 filings within one year, then a bankruptcy stay will go into effect and help you deal with creditors whether the debts will be discharged or not discharged. The Chapter 13 filing will still help you get creditors off your back. Ideally, if you have a lot of unsecured debt, it is better to wait the four years then have to pay 100% if the debts are non-dischargeable.
For example, one of Mr. Taieb’s clients filed a Chapter 7 on December 31, 2013. Currently, she has substantial new debt. However, if she files a Chapter 13 bankruptcy at this time, it will be a NO DISCHARGE case, so she would have to pay 100% of all debt she owes, which she cannot afford. If she waits until January, 2018 to file a Chapter 13, she will be eligible to wipe out a substantial amount of the new debt incurred and make a minimal trustee payment based on her disposable income.
Thus, if you have new financial problems after you have been discharged in a Chapter 7, you are eligible to file a Chapter 13 to stay new creditors. However, if you file within four years of the Chapter 7 filing, you are barred from getting a discharge. Thus, if you are only dealing with a foreclosure or repossession then it won’t affect you unless you have substantial new unsecured debt. If that is the case, it is ideal to wait a minimum of 4 years after you filed the Chapter 7.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 32 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.