Eligible for Chapter 7 Bankruptcy in 2014? You Should Get Started Early Due To New Increased Paperwork Requirements
Posted on Friday, April 18th, 2014 at 4:12 pm
Many people filed for Chapter 7 bankruptcy in October of 2005. It was important to file before the new bankruptcy regulations went into effect later that month. The new bankruptcy regulations were much stricter and would require many Chapter 7 filers to file a Chapter 13 if they waited until November 2005. The rush of Chapter 7 filings in October 2005 helped save many people from ruthless creditors who were trying to take their property or garnish their paychecks.
Chapter 7 Bankruptcy Can Only Be Filed Every 8 Years
The unfortunate side effect was that all those bankruptcy filers from 2005 were prevented from filing bankruptcy between October 2005 and 2013. The bankruptcy code only permits a Chapter 7 to be filed every eight years. The eight years is measured from the date of the first bankruptcy filing to the date of the second bankruptcy filing. If no discharge is received during the first bankruptcy, then the eight year limitation does not apply. However, most Chapter 7s result in a discharge. Although you can file a Chapter 13 within eight years of receiving a discharge from a prior bankruptcy, there are certain limitations that apply to Chapter 13s as well.
Have You Been Waiting to File For Chapter 7 Bankruptcy?
There are many people in Northern Kentucky that filed bankruptcy eight years ago and have found themselves in the same unfortunate situation now that they were in then. Many have gone through divorce or have had unexpected medical problems. Others still struggle with student loans that they were unable to discharge in the first bankruptcy, and these payments have led to more credit problems. Others were caught in the financial crisis and lost their homes to foreclosure. Whatever the reason, there are many people who have been waiting to file a Chapter 7 and that time is now upon them.
The Latest Generation of Bankruptcy Laws Requires a Great Deal of Paperwork
The most important thing for a Northern Kentucky bankruptcy filer to realize is that the new bankruptcy laws require a great deal of paperwork. If you intend to file bankruptcy in or near the date you are eligible in 2014, you should get started early. The requirements are very different now than they were eight years ago. A Northern Kentucky person filing for Chapter 7 bankruptcy today has to do many different things that were not required in 2005. If you don’t consult with an attorney now, you will probably not be ready to file in October.
If you or someone you know may need to file bankruptcy, contact a Northern Kentucky Bankruptcy Lawyer today. Lawrence & Associates can help! We serve all of Northern Kentucky including Boone, Kenton, Campbell, Gallatin and Grant counties!
Contact Us (859.371.5997) for a Free Consultation