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I’ve Already Filed for Bankruptcy But I Need Financial Relief Again

Posted on May 3, 2012 in Uncategorized


People routinely come into our office concerned about filing a bankruptcy because they have filed for bankruptcy in the past. If the filing was over 8 years ago, it’s not going to impact our options to help.  But  the Bankruptcy Code prevents continuous bankruptcy filings. After filing a Chapter 7 bankruptcy, you must wait 8 years to file another Chapter 7 petition (measured from the date of filing of the original case) or 4 years to receive the full benefits of a Chapter 13 bankruptcy. After filing a Chapter 13 bankruptcy, you must wait 6 years to file a Chapter 7 or 2 years to file another Chapter 13. Even though the full benefits of bankruptcy might not be possible because of a previous filing, there still may be answers for you.

Two of the best ways to receive financial help are filing a “no-discharge” Chapter 13 or filing a Chapter 128 State law remedy. A “no-discharge” Chapter 13 allows you to file for bankruptcy but not receive the full benefits of a discharge (where your debts are forgiven). The “no-discharge” Chapter 13 would be the best option left if you fell behind on a car payment while out of work but recently got re-hired. If the company you’re paying for your car payment tried to repossess your car, you could file a Chapter 13 and prevent the creditor from taking your car – or return it if it’s been repossessed but not sold yet. You would get 3 to 5 years to make up the payments you missed on the car, while also taking care of any debts you’ve received since your last bankruptcy filing. The only catch with the “no-discharge” Chapter 13 is that you have to pay back everything in full.

The Wisconsin residents we serve have another option:  the State law Chapter 128 remedy. You would use a Chapter 128.21 Petition to Amortize Debts if you have fallen behind on bills that were not secured by property.  This means we can’t take care of furniture on credit, car loans/title loans, mortgages, and tax debts.

But most bills, like medical bills, high-interest payday loans and credit card bills can be included. With a Chapter 128 you pay back the bills you choose over three years. Like the “no-discharge” Chapter 13, you also have to pay the bills back in full.  The good news is that interest stops and your wages and bank accounts can’t be touched by the creditors you list.

If you need financial help but are unsure what to do because of a previous bankruptcy filing, give the professionals at Lakelaw a call. We help people in financial difficulty find the right solution for them and do so by using Care, Kindness, Courtesy, Respect, Professionalism and Dedication.

This article was drafted by Lakelaw associate Nicholas D. Strom


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