If you are in the position of considering claiming bankruptcy twice, you should first look at the type of debts that you have to determine whether they can be discharged under a traditional Chapter 7 bankruptcy filing, or whether a repayment plan under Chapter 13 would be best.  There is no specific waiting period between bankruptcy filings but if you filed under Chapter 7 the first time and wish to do so again to discharge your debts, you will need to wait a total of 8 years from the date of filing of the first petition.  However, debts can also be discharged under Chapter 13 and you will only have to wait a total of 4 years from your original Chapter 7 to take advantage of the repayment bankruptcy process.

Claiming bankruptcy twice is also possible if your first case was a Chapter 13 filing.  In that case you will have to wait 2 years for a repeat version of the case, or 6 years if you now wish to file under Chapter 7.  If you have already paid off at least 70% of the debt due to unsecured creditors, you can petition for a Chapter 7 bankruptcy without any waiting period from your original Chapter 13 case.

Whatever your reason for claiming bankruptcy twice, remember that it is possible but the effect that it will have on your credit rating will be severe.

A Chapter 7 bankruptcy eliminates all debt except the debt the person wants to continue like payments on a car, home or furniture. Chapter 13 bankruptcy pays off the majority of the debt owed over a period of five years payments are made to the bankruptcy trustee and forwarded to the creditors. Everyone looking into this relief must go through a qualifying process if they are able to repay the debt, they are required to do a Chapter 13. The monthly payments are reduced to a percentage of income, an amount the debtor can afford to pay.

Once the client has started with the Columbus bankruptcy attorney, paid the fees and filed the correct forms, creditors are no longer allowed to contact the client. All contact must go through the bankruptcy trustee who is appointed by the court to oversee the paperwork process. It becomes safe to answer the telephone and the door and to open mail again.

Many homeowners are able to continue making mortgage payments and avoid Columbus Foreclosure on their home. Payments on other bills are reduced or eliminated. There is enough money to cover life’s essentials.

Many people find themselves considering this option when they lose their job, have their hours or pay reduced or experience major financial difficulties. Life happens and a Columbus bankruptcy attorney can offer options and help in dealing with this unfortunate event. This is the first step to building a secure future.

First off, make sure that you’ve considered all of your options; bankruptcy should be only a last resort. Aside from being a very difficult and stressful process (particularly since Congress changed the laws recently to make it even harder to discharge your debts through bankruptcy), it will also make it very difficult to repair your credit or obtain more. Additionally, many companies do pull your credit report before hiring you, so a major negative event like a bankruptcy can also affect your ability to find a new job.

If you do decide to go this route, be aware of what you’re getting into. Generally, you’ll be able to keep your home, if you own one (which is kind of unfair as you don’t get any extra exemption if you don’t own a home). Assuming you’re filing a chapter 7, which wipes out your debt (and is more difficult to get), you’ll be required to turn over most of your other assets to the court for disposal. You get to keep your current car if it’s value is no more than $3,225 (or you can pay the difference if it’s worth more than that). You can also keep household goods valued at up to $10,775 total, although no individual item may be worth more than $525. Finally, retirement plans (such as an IRA) are protected – just one more great reason you should be saving for retirement! If you don’t qualify for chapter 7, you may be able to get chapter 13, which does not discharge your debts but does put you on a payment plan that makes your payments more manageable.

With that being said, mortgage rates reset and people could no longer afford their homes. However, if the person can get over the physical aspect of losing their home they have a chance to be in a better position over the long run if they plan ahead and file bankruptcy.  People are now planning their defaults and taking advantage of housing prices dropping. In addition, job losses began to mount and unemployment began to rise and the bankruptcy lawyer found he was very busy

Planning ahead for bankruptcy

Once you realize you can no longer afford your home you need to do your research and find out which bankruptcy you qualify for. You can file bankruptcy and erase credit card debt and not owe any money at all on previous debts including your home debt if you qualify for chapter 7.

Once you file, don’t reaffirm your home and quit paying your mortgage. The money you save living rent free you can sock it away and buy house on a land contract for cheap and then refinance it in three years. The house you bought for cheaper will have appreciated and you will have established a positive credit rating.  Once you file bankruptcy the mortgage company by law can not continue to foreclose on your home. You save time and this should be last step.

People will tell you that you will ruin your credit, if you can afford your home and you lose it to foreclosure they your credit will be bad and you should file bankruptcy and wait the year it will take for the mortgage company to kick you out while saving your money the whole time.

The first step in the bankruptcy process will be to gather detailed information related to your assets, liabilities and household income. You will need to gather things like credit card statements, loan documentation, bank account details and mortgage data. All of this information will be used to determine your filing eligibility and also to ensure that you’re not simply using the process to get out from under your obligations when you could, in fact, take care of them on your own. Some of this data will also be used to determine whether or not you have assets available that could be used to pay back your creditors in bankruptcy. Lastly, the information will be used to determine the type of bankruptcy that will best suit you – Chapter 7 or Chapter 13.

Once you’ve collected the required information and have been approved through the bankruptcy courts, you will be required to pay a filing fee of a few hundred dollars and will also need to attend some credit counseling sessions. These sessions are designed to teach the about the basics of money management, with the purpose of preventing future financial mishaps.

If all of this sounds overwhelming, then it probably makes sense to speak to a financial professional that specializes in debt resolution. They can help to further clarity the whether or not you should go bankrupt, and they can also explain some of the many alternatives to bankruptcy.