In this economy, many people are finding themselves in financial difficulties, facing foreclosure and garnishment, after an earlier Chapter 7 Bankruptcy discharge. Earlier this week I received a phone call from a person facing $500 garnishments from her 2,000 pay check, which would leave her unable to pay the mortgage and support her family. Since she received a Chapter 7 discharge within the past eight years, she was not eligible for another Chapter 7. However, many people don’t realize that they may qualify for a Chapter 13 discharge provided that they did not received a prior discharge within four years of the anticipated Chapter 13 discharge.
For example, if you filed a Chapter 7 in 2007 and received a discharge in 2007 you would not be eligible for another Chapter 7 discharge until 2015. However you can file a Chapter 13 and depending on the length of your Chapter 13 plan, receive a discharge within 3 years. If you have questions regarding your ability to file, contact an attorney who offers a free consultation and ask him or her to determine if you qualify for Chapter 13 relief, after your earlier Chapter 7 discharge.
