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Options exist when financial hardship strikes following bankrupcy

Sometimes residents of Pennsylvania turn to bankruptcy to address their financial difficulties. Depending on one’s situation, that may be accomplished via a Chapter 7 filing. In a filing like this, the petitioner’s assets will be sold and the proceeds disbursed to creditors. Once this process is complete, most remaining debt is discharged and the petitioner can in a sense start over financially.  While in many situations filers successfully set off on a ne w financial path, at times, things happen that leave them facing financial hardship once again. In these cases, they may not know where to turn.

Depending on the amount of time that has passes since the last filing, it is possible that Chapter 7 bankruptcy could be filed once again. Under the law Chapter 7 bankruptcy can be filed once every eight years. While this may exclude some people from bankruptcy relief under that chapter, they may still have bankruptcy options. It is possible that someone who has previously filed for debt relief under Chapter 7 may be able to do so again, under a Chapter 13 filing.

Under a Chapter 13 filing, either part, or all of the debt owed will be paid over the course of three to five years.To accomplish this, a repayment plan that must be approved by the trustee is developed. Once the repayment period is over, a petitioner is once again set on the path of financial stability.

Determining the best way to proceed when facing financial hardship can be complicated. It is dictated by the circumstances surrounding each petitioner’s situation. To help deal with these complexities most find it beneficial to work with a bankruptcy lawyer.

 

Source: Fox Business, “Too Soon to File for Bankruptcy Again?” Justin Harelik, Aug. 14, 2013

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