Suppose you’re having financial difficulties and your home is about to be sold, the best option is usually to file for bankruptcy. Filing for bankruptcy will help you stop foreclosure immediately and offer you relief to help you get out of financial difficulties. However, if you have filed for bankruptcy before, you might be wondering if it is possible to file for another. Many homeowners have abused the use of bankruptcy to stop foreclosure. And that leads to the government creating laws that limit how often you can file for bankruptcy. The limit imposed by the law varies by the type of bankruptcy you’ve filed or about to file.
The significant chapters of bankruptcy filed for by homeowners are chapter 7 and chapter 13. Chapter 7 bankruptcy help homeowners discharge their debts, including credit card debts, and gives them a fresh start. With chapter 7 bankruptcy, your slate is wiped clean. However, most of your properties will be liquidated to pay off some of the loans, while others will be discharged.
Chapter 13 bankruptcy helped homeowners get back on track with their mortgage payment. It forces your lender to negotiate a loan modification with you. To make it easier for you to get back on track with your payment. Chapter 13 bankruptcy gives you a more permanent solution, as it gives you a period of three to five years to pay off your loan.
Therefore, the limit created by the government varies between the different chapters. Below is the time limit for homeowners who seek to file for another bankruptcy. The limit is dependent on the chapter you filed before and the one you want to file now.
Therefore, you can file for bankruptcy multiple times, but you must keep the time limit stated above.