Question:

If a person went bankrupt (total wipe out) in 2005, can that person go bankrupt again on a restructure bankrup

by Guest65674  |  earlier

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In 2005 i went bankrupt, (total wipeout) ....I got a good job and this past December I bought a new car...now I have lost my job due to state budge cuts...is it possible to go bankrupt again this soon if I do a restructure bankruptcy to keep from loosing my car? Or is it better to loose the car to reposession?

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  1. You shouldn't do that.  You should find temporary work until you get another job in your field.  Combined with unemployment insurance, you should be able to make ends meet.

    You should also seek advice of a financial planner when you are back on your feet to come up with plans for rainy day funds and such.


  2. If you had a chapter 7 bankruptcy you have to wait 8 years for another chapter 7.  I believe you could do a chapter 13 after 4 years (the chart of time limits escapes me at the moment).  But that is not going to help you now.  All you can hope to do is work something out with your lender.

  3. Chapter 7 can be filed once every eight years....so if you filed for Chapter 7 in 2005....you're going to have to wait till about 2013 to be eligible to file again.

    This limit does not apply to Chapter 13, the version of BK where you pay back most of your debts under a court-supervised repayment plan. This can help you hang-on to assets....However,  you're going to end up with really damaged credit if you do this as you'd have almost back-to-back BK filings on your record.

    If we're just talking about a car here....it's MUCH better to loose the car than to file for Chapter 13.....You don't want two BK filings on your credit report within a three year time span....This may make it impossible for you to be eligible for any type of credit, loan, mortgage or rental for a long, long time. A car is not worth this.....

  4. I must agree with Slimick a repossession after a bankruptcy is bad but not as bad as back to back bankruptcy's.

    Besides a chapter 13 shows for 7-years from the date of discharge so if you get into a 5-year plan your talking about it showing on your credit for the next 12-years at least a repossession will fall off after 7.5 years.

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