MY 8 YEARS AFTER CHAPTER 7 HAS NOT PASSED: ANOTHER REASON TO FILE CHAPTER 13
Another reason to file Chapter 13 is because you cannot file Chapter 7 due to not having 8 years pass since your previous case.
Life can bring many unexpected surprises. In our Indiana Bankruptcy office we have seen many times where large amounts of debt are accrued AFTER a Chapter 7 case is filed. If these debts accrue sometime within the 8 years after your Chapter 7 was filed, you will not be able to file Chapter 7 again.
During that 8 years, you will need to file a Chapter 13 case for debt relief. Chapter 13 cases can be VERY beneficial to those who have not yet met the 8-year waiting period to file Chapter 7.
CHAPTER 13 CAN REALLY HELP THOSE WHO CANNOT FILE CHAPTER 7
Although you may prefer to file Chapter 7, Chapter 13 can be extremely beneficial to file if you cannot yet file under Chapter 7. Chapter 13 is VERY affordable to get started and can present you with a situation where your payments to your creditors could be much lower. Many times you can drastically reduce the amount that you must pay to your automobile creditors. You will be surprised: Chapter 13 will cost you little to get started and will likely instantly drop your total payments.
CHAPTER 13 CAN BE “EASY” AND “AUTOMATIC”
If you cannot file Chapter 7, you may be concerned about the complexity of Chapter 13. However, Chapter 13 is not usually very complex because you are required to turn in less documents to get the Chapter 13 started. In addition, the payment can be automatically paid from your paycheck or sometimes a bank account. It will be MUCH easier to deal with an “impossible” credit situation if you file a Chapter 13 case even if you would prefer to file Chapter 7 but are not yet able due to the 8 year waiting period.
YOU ARE NOT “LOCKED IN” TO CHAPTER 13: YOU CAN CHANGE TO CHAPTER 7 LATER
If you decide to file for Chapter 13 because you are currently in the “8-year bar” from filing for Chapter 7, you will not be “locked in” to Chapter 13. Many of our clients have chosen to remain in the Chapter 13 and finish it. But, you do have the ability to allow your new Chapter 13 case to dismiss after the Chapter 7’s 8-year-wait has passed.
Letting the 13 dismiss can let you file under Chapter 7 when the full 8 years have passed. Do not be concerned about new debt or high Chapter 13 payments: you will be able to “switch” to Chapter 7 when the time comes if it is necessary.
If you need debt relief, do not be afraid of Chapter 13. It can be a powerful remedy if you are currently under the 8 year “bar” from filing Chapter 7. Chapter 13 can be the flexible remedy you may need if Chapter 7 is not currently available.
