Bankruptcy is a powerful financial tool for people in Texas who have burdensome debt, but they aren't a magic shield that protects from future financial woes. Many individuals find themselves in a situation where they may want to file for bankruptcy a second time. While getting a second bankruptcy has certain limitations and waiting periods, it is possible for some. For many, however, there may be other ways to relieve debt.
For a previous Chapter 7 filer, there is a waiting period of at least eight years before another Chapter 7 petition can be filed. To file Chapter 13 bankruptcy, which restructures rather than discharges debt, a person must wait four years after having filed for Chapter 7. People who previously filed for Chapter 13 only need to wait two years before filing for Chapter 13 again. These bankruptcy wait times were introduced in 2015.
Chapter 13 bankruptcy may be a preferred option to Chapter 7 for people who have a lot of debt that can't be discharged, such as student loans, child support payments, and taxes. Both types of bankruptcies remain on credit reports for several yeas, so people should seriously consider whether filing again is in their best interests. Arranging payment plans and other debt relief programs may be preferable.
People looking to file under Chapter 13 should seek counsel from an attorney. Bankruptcies require complex paperwork, negotiations with creditors, and court appearances. In addition, there are several eligibility requirements that must be met. However, Chapter 13 might be an appropriate choice for consumers who have a reliable and steady source of income that can be used to comply with the terms of the repayment plan.