How Many Times can You File Bankruptcy in Arizona?
Filing for bankruptcy often seems like the only solution in a situation of unforeseen financial problems. Whether you’ve lost your job or you have to pay large medical bills, chances are that you’re looking for a way out of the situation. Filing for bankruptcy is one of the possibilities but how often can you do it? How many times can you file bankruptcy in Arizona?
Chapter 7 and Chapter 13 Bankruptcies Differ
The answer to the question how many times can you file bankruptcy in Arizona depends on the type of bankruptcy that you’re interested in.
According to Arizona law, you can file for Chapter 7 bankruptcy once every eight years. When it comes to bankruptcy, most people are looking forward to this opportunity because it allows for the discharge of most kinds of debt.
Under Arizona bankruptcy law, a Chapter 13 bankruptcy can be filed at any time. The Chapter 13 bankruptcy allows for debt rescheduling and the creation of a payment plan that will last anywhere between three and five years. The payments will be lower and it’s also possible for a portion of the debt to be discharged.
Filing for Chapter 13 bankruptcy more than once is quite common for people in a financial difficulty. The reason is simple – stricter conditions apply to a Chapter 7 bankruptcy application and it may be turned down.
Filing for Bankruptcy Under a Different Chapter
Another possibility you may want to explore is how often filing for bankruptcy under a different chapter is possible in Arizona.
People who have previously filed a Chapter 13 bankruptcy and are now looking forward to a Chapter 7 bankruptcy must wait at least six years to become eligible. In the opposite scenario, the amount of time that will have to pass between the two filings is four years.
Anyone who did not manage to have their debt discharged during a previous bankruptcy is eligible for filing a new one immediately. Depending on the situation, however, specific actions may be required on behalf of the debtor or special court orders may apply.
Other Terms and Conditions
A person who has previously filed for Chapter 13 bankruptcy may be freed from the waiting period whenever a few conditions are satisfied. The debtor will have to pay back all of their unsecured debt and at least 70 percent of secured debts will have to be covered for the exception to apply.
Whenever a case is dismissed because of a failure to obey the court, you will have to wait 180 days before you’re given the opportunity to file for bankruptcy again.
If a court has dismissed a previous bankruptcy filing with prejudice, you may be prevented from filing again. A filing will be dismissed with prejudice whenever there are suspicions that the applicant tried to abuse the system. Depending on the violation and its severity, the court may increase the amount of time you have to wait until you file again or you’ll be prevented from filing for bankruptcy in the future altogether.
Whenever you’re filing again after you were denied discharge, chances are that you will be incapable of discharging any of the debt that was included in the previous filing. When you aren’t eligible for a discharge, you will remain liable for the debt included in the previous filing. While you are in a bankruptcy, however, the terms and conditions are going to be a bit more lenient. Thus, filing for bankruptcy will still make sense because you’ll have a chance to get your finances in order without being pressured to make massive repayments.