If you filed bankruptcy once, you may wonder when you can file a second time. First off, you need to find out eligibility. You should also consult with a Texas bankruptcy lawyer. This blog guide highlights eligibility for Chapter 7 or Chapter 13 bankruptcy, how to make the choice, and how a lawyer can help.
Eligibility for a Second Bankruptcy
By law, you must wait 8 years after a Chapter 7 bankruptcy to file again, and 6 years after filing Chapter 13 bankruptcy, unless you paid 70 percent or more of the balance.
If you’re eligible, you will go through the process of filing again. This means you’ll be hiring a bankruptcy lawyer, taking a credit-counseling course, take a means test for Chapter 7 or Chapter 13, and more.
What is the means test?
The “means test” is the same test you took in your first bankruptcy. You may wonder what it does. A means test determines eligibility for Chapter 7, or with Chapter 13 it helps create a debt repayment plan. If your income is the same as it was when you first filed Chapter 7 bankruptcy, you can most often file again. The means test is based on the Texas median income for Texas residents; if you’re above, you’re not eligible, but if below you are eligible.
How to Handle Creditors
As with your first bankruptcy, you will be informing all your creditors of your second bankruptcy. This has the advantage of again stopping any calls or notices you’re getting. With Chapter 7, creditors have the right to appeal your discharge of debts; in Chapter 13, they are quite often getting most of their money but if you are behind in mortgage payment, it can save your home.
Your Texas Lawyer
Should you hire the same lawyer or a new one? This is a common question. You likely already know what you want in stopping harassment, what debts you want discharged, and what benefits come from filing bankruptcy. In many cases, you may be unhappy with your bankruptcy lawyer, but kept him or her to save some time. In other cases, your lawyer may have been very effective and helpful, but had so little time to help you that you want a new one. You are allowed to hire a new lawyer. It’s important not to think you can do this alone simply because you filed once; no two bankruptcies are exactly alike. Hire professional representation so this process can be simple and rewarding.
