In Utah, bankruptcy protection offers you a fresh financial start and a second chance at getting your life back on track.
But what if you need a third chance? Or a fourth chance? Can you file another claim, or is Utah bankruptcy a one-time option?
Multiple Utah Bankruptcy Filings Are Allowed by Law
The good news is that the U.S. Bankruptcy Code does not restrict you from filing more than once in our state; in fact, there are no limits to how many times you can file a claim.
However, the law seeks to limit abuse of the bankruptcy system.
For this reason, the legal code contains statutory guidelines for repeat filers. In other words, you’ll have to wait a specific amount of time after receiving a Utah bankruptcy discharge before you can get another discharge.
How long will you have to wait before you can file for another discharge? The time frame depends upon the type of claim that you previously filed.
If You Previously Filed Chapter 7 Utah Bankruptcy
Did you receive your first Utah bankruptcy discharge under Chapter 7?
If you plan on filing the same type of claim again, be prepared to wait. You won’t be eligible for another discharge for eight years. But that’s eight years from the date you filed the previous claim, not from the date of your last bankruptcy discharge.
If your previous bankruptcy claim was granted under Chapter 7, but now you want to file for Chapter 13, the time frame is shorter. You’ll only need to wait four years to be eligible for another discharge.
Keep in mind, however, that the court may not confirm your Chapter 13 plan. If that happens, you have the option to convert the case to a Chapter 7 bankruptcy, but only if eight years have passed from your last Chapter 7 filing.
If not, your case will be dismissed.
If You Previously Filed Chapter 13 Utah Bankruptcy
Was your last bankruptcy discharge under Chapter 13? To file another of the same type of claim, you’ll only need to wait two years from your previous filing date.
However, if your first discharge was under Chapter 13 and now you plan on filing for
Chapter 7 bankruptcy, you won’t be eligible for discharge until six years from the date your previous case was filed. The court may grant an exception and permit an earlier Chapter 7 discharge if you paid all or most of your unsecured creditors in the first Chapter 13 case.
For more information or assistance in handling your Chapter 7 or Chapter 13 claim, contact the experienced bankruptcy attorneys at Lewis Adams and Associates. Call our West Jordan office today to schedule a free consultation to discuss your options for filing Utah Bankruptcy.