Multiple Bankruptcy Filings – Chapter 7 Discharge or Not?

We recently had a client come in who previously filed for chapter 13 bankruptcy way back in 2006. Eventually, his bankruptcy case was converted to chapter 7 bankruptcy and he received a discharge in 2011. Unfortunately, his finances have deteriorated again and he’s looking into filing bankruptcy as an option. Can he get another discharge or not?

Discharge Limitations if He Files Chapter 7 Bankruptcy:

Just like any other uncommon situation in the bankruptcy world, the best place to look to solve his dilemma is the Bankruptcy Code itself. The Bankruptcy Code is clear – in chapter 7 bankruptcy, whether it’s a Plano chapter 7 or Dallas bankruptcy case, Section 727 states that the court shall grant a Texas chapter 7 discharge unless:

…the person filing bankruptcy has received a discharge in a chapter 7 case that was commenced within the 8 years before the immediate case was filed; or
…the person filing bankruptcy received a chapter 13 discharge in a case that was commenced within the 6 year period before this case is filed.

So, if he were to now file chapter 7 bankruptcy again, he will be eligible for another chapter 7 discharge so long as his previous case was filed more than 8 years ago. If the prior discharge was for a chapter 13 case, he would only have to wait 6 years to file bankruptcy and be eligible for another chapter 7 discharge.

If you have filed bankruptcy before and are unsure whether or not you are eligible for a bankruptcy discharge, make sure you contact a Dallas bankruptcy attorney to see what your options are.

About the Author

Derek Prosser understands that clients need help and need answers and that in order to properly address those concerns, clients need to deal with an attorney first and always, not just an assistant or paralegal. By effectively counseling from the outset of a case, Toronjo & Prosser Law can anticipate and address potential problems before they arise, as opposed to when they’ve already surfaced (the “Counsel Later” approach), and, in the end, strive for a seamless representation.