When you file for Chapter 7 bankruptcy in Florida, you’ll get the chance to discharge most of your unsecured debts. Unfortunately, Chapter 7 might not be enough. If you’re still struggling with debt a few years later, you might have to file for Chapter 13.
When can you file for Chapter 13?
After you’ve filed for Chapter 7 bankruptcy, you can’t file for Chapter 7 again until eight years have passed. However, you could file for Chapter 13 after four years have passed. Technically, you could file for Chapter 13 immediately after Chapter 7, but you won’t be able to get any more of your debts discharged.
Filing for two different types of bankruptcy might sound unusual, but your bankruptcy attorney might recommend it in certain conditions. For example, if your Chapter 7 bankruptcy didn’t discharge all your debts, Chapter 13 could give you the chance to pay them off over the next few years. You might even be able to discharge more debts if you wait four years between bankruptcies.
If you’re dealing with the possibility of foreclosure, filing for Chapter 13 gives you the chance to pay off your mortgage before the bank seizes your house. You could also use this time to pay back taxes, student loans and anything else that you still have on your record after filing for Chapter 7.
What’s the best option for you?
Everyone’s situation is different. Some people only need to file for Chapter 7 or Chapter 13 once to clear out their debts while others need to file again after several years. Some people use both Chapter 7 and Chapter 13 to wipe out their debts. An attorney could help you figure out what you need to get on top of your finances again.