Can I file again?

Hopefully those of you who have filed for Bankruptcy will not find yourself in the position where you need to file a second or third time but unfortunately it does happen and it happens more often than you may think.  Sometimes its a result of poor planning but more often than not its a function of reality.  Bad stuff happens and people with less resources are more likely to be unable to weather the storm.

Technically speaking there is no minimum time frame between bankruptcies.  However there are limitations regarding the usefulness of filing.  The end goal of most bankruptcies is a discharge of the legal obligation to pay one's debts.  Unfortunately if you file to soon you run the risk of not being able receive the discharge you desire.  

I will summarize the rules here for your benefit but keep in mind that some issues (and this is one of them) are best answered by an Attorney.  The best thing you can do is make sure you hire a good attorney who can look at you individual situation and determine the best course of action for you.  In order to find the right attorney for you it is important that you develop a general understanding of the law so that you can assure you have a knowledgeable attorney in the field.  For more info on this check out my book by clicking here.  Or you can buy it on Amazon.com 

General Guidelines are as follows

Successive Chapter 7 cases need to 8 years apart

Successive Chapter 13 cases need to be at least 2 years apart

It is more complicated if you change Chapters (ie file one of each)

After a 13 in which you recieved a discharge you need to wait at least 6 years to file a 7 unless you either 

1) paid all creditors in full in the 13 or

2) you paid at leas 70% and it was you best efforts and in good faith

If you filed 7 first then you need to wait at least 4 years to file the 13

As I said it can be complicated so check out my Book and get a good attorney. 

Inherited IRA funds

OK so I am a bit late to post on this issue but late is better than never I guess.  United States Supreme Court in Clark v. Rameker just held that IRA funds inherited by a debtor do not fall with in the retirement account exemption.  Their reasoning which strikes us as entirely reasonable is that funds in an inherited IRA are immediately accessible without penalty to the owner and as such are not really retirement funds at all but instead a potential source of capital currently available to repay debts.  

As always dont forget to check out the book.  

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Super sale on Book

Just a reminder the electronic version of the book is on sale for 99 cents at Amazon currently.  And also keep in mind that physical book can be bought for under 10 bucks.






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Post Bankruptcy Mortgages

One issue that many people worry about when considering filing for Bankruptcy is their future ability to purchase a house.  This a legitimate although perhaps premature concern in general we believe that Bankruptcy is a last resort so the future consequences to ones ability to borrow are not particularly relevant.  Arguably they are only relevant if a person can afford not to file in order to avoid them which of course means the person probably shouldn't be filing in the first place. I digress...

The good news is that in many cases a person can get a new mortgage as quickly as 2 years after filing a chapter 7 bankruptcy.  This period applies to FHA loans when the borrower didnt experience a foreclosure. If there has been a foreclosure than the period is increased to 3 years following the foreclosure date.

The periods for conventional loans are longer and start at a 4 year period.  I know of at least a few banks that make a borrower wait as long as 7 years.

At any rate if you file it doesn't have to be the end of your financial life it should be considered a new beginning for you.  You will have to rebuild but you can do it.  For more information on this topic be sure to check out the book.  The kindle edition is only 99 cents and you can buy a printed edition for less than 10 bucks!

                                                             






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Super Cheap and Short Report on Self Publishing Now Available on Amazon

Jeffrey Holst recently published Self Publishing for Lawyers; a new report that might me of interest to some of our readers.

Check it out

Book News

In the next few hours there will be a deep discount applied to the book on Amazon so if you have been thinking about buying it for 14.95 now is you chance to get it for much much less.   Time to jump the sale wont last forever.  

Detroit bankruptcy news

http://www.freep.com/article/20140327/NEWS01/303270095/Detroit-swaps-bankruptcy-Chapter-9-UBS-Bank-of-America-Merrill-Lynch

Same Sex Marriage and Bankruptcy

In my private practice days I filed a few same sex couples bankruptcies and they were always plagued with issues since their relationships were not recognized by the federal courts.  This resulted in us having to file two separate petitions at considerable expense to the couple.

I recently saw this post about some changes to this process which I thought our readers might find interesting

Are all debts included in your Bankruptcy?

I found this useful question and answer on Bankrate.com that I thought our readers might find insightful.

About the author

Jeffrey Holst is the author of the self-published book "Should I File:A Definitive Guide to Bankruptcy."  He holds an M.B.A from Grand Valley State University and earned his J.D. Cum Laude from Michigan State University.  He is licensed to practice law in Michigan and Tennessee.   He currently resides in Chattanooga, Tennessee where he is general counsel for a closely held company in the transportation industry. 

For your viewing pleasure, here is commercial I used to use back in the day when I used practice law.  Let me know what you think.

****this is not a solicitation for Legal Services,  I am no longer taking new clients and work exclusively as in house counsel for a small closely held company.****

Commercial Bankruptcy Filings for 2013

Good news on the economic front according to the Wall Street Journal commercial bankruptcies fell 24% to a pre-financial crisis level of 43,934.  2007 the first year of the fiscal meltdown saw 46,132 commercial bankruptcies, in 2012 the number was 57,702.

Additionally my conversations with consumer bankruptcy attorneys also show a marked decline in filings.  I havent yet seen the final numbers but I expect them to also be down significantly.  

Lets all hope that 2014 is a banner economic year.