Chapter 13 After Chapter 7 in Mississippi: Is It Allowed?

Can You File A Chapter 13 After A Chapter 7 in Mississippi? This is a common question because bankruptcy laws can be confusing. It’s normal to have doubts about what filings are allowed. If you need help, you are highly encouraged to seek help from a skilled bankruptcy lawyer. 

If you’re facing financial hardship and struggling with debt, there are two main types of bankruptcy to consider: Chapter 7 and Chapter 13. Chapter 7, sometimes called “liquidation” bankruptcy, involves selling some of your non-essential belongings to repay creditors. The remaining debt is then discharged, meaning you wouldn’t owe it anymore. On the other hand, Chapter 13, known as “reorganization” bankruptcy, allows individuals with a steady income to set up a plan to repay all or part of their debts over time.

Understanding these options is crucial, as Chapter 7 offers a fresh start by eliminating debt, while Chapter 13 helps manage debt through a structured repayment plan.

Short Summary

  • Filing Chapter 13 After Chapter 7 in Mississippi: You can file Chapter 13 bankruptcy after Chapter 7, but waiting periods apply depending on the discharge of your previous debts.
  • Chapter 7 vs. Chapter 13 Bankruptcy: Chapter 7 eliminates most debts through asset liquidation, while Chapter 13 creates a repayment plan to keep property.
  • Qualifying for Chapter 7 vs. 13: Chapter 7 has income limitations. Chapter 13 requires a steady income to afford the repayment plan.
  • Converting Chapter 7 to 13: This is possible if you haven’t received a discharge yet and the court approves.

The question remains: can you file a chapter 13 after a chapter 7? This article will provide a comprehensive answer. 

What is Bankruptcy? 

If you’re overwhelmed with bills in Mississippi, bankruptcy could be an option. It’s a court process that helps people and businesses deal with debts. There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13

Chapter 7 is sometimes called “straight bankruptcy.” In Chapter 7, you sell some of your belongings (assets) to pay off your debts. This removes most unsecured debts, like medical bills and credit card balances. Chapter 13 is for people with a steady income. You create a plan to repay all or some of your debts over a period of time, usually 3 to 5 years.

Bankruptcy Qualification in Mississippi: Am I Eligible?

Filing for bankruptcy requires following some rules. These rules are in place to make sure bankruptcy is used fairly.

One rule is about waiting periods. If you filed for bankruptcy before, you’ll need to wait a certain amount before filing again. The waiting period depends on which type of bankruptcy you filed for before and which type you want to file for now.

There are also specific requirements for each type of bankruptcy. Here’s a breakdown of the basics for Chapter 7 and Chapter 13 in Mississippi.

Chapter 7 Bankruptcy

To qualify for Chapter 7, your family’s total income before taxes (gross income) needs to be lower than the average income for families your size in Mississippi.  You multiply all the money your family earned in the past 6 months by two. Then, check the U.S. Trustee’s website to see if your income falls below the median income for your family size.

You can also use a quick online tool to see if your income qualifies.  If your income is too high, you might still qualify for Chapter 7 by taking another test. This test looks at your income after expenses to see if you have enough left over to make payments under a different type of bankruptcy (Chapter 13).

Chapter 13 Bankruptcy

Qualifying for Chapter 13 can be more expensive because it allows you to keep more of your property.  You’ll need to make a monthly payment, which can be high for some people.  To qualify for Chapter 13, the payment will be based on the highest of these three things:

  • Certain debts you can’t get rid of (like child support)
  • The value of the property you get to keep
  • The money you have left over after paying your bills (disposable income)

How To Convert a Chapter 7 Bankruptcy to Chapter 13?

Not everyone qualifies for Chapter 7 bankruptcy. There’s a test to see if your income is too high. If you filed for Chapter 7 by mistake, you can change your mind and file for Chapter 13 instead.

Chapter 13 lets you keep more of your stuff.  In Chapter 7, some things might be sold to pay back creditors. With Chapter 13, you can plan to repay your debts and get caught up on things like your mortgage or car loan.

Thinking about converting your case?  There are a few reasons why someone might want to switch from Chapter 7 to Chapter 13. Maybe you didn’t realize you could keep more property or want a chance to repay your debts.

Here’s how to convert:  If you’re acting honestly and haven’t hidden any assets, you can usually ask the court to change your case from Chapter 7 to Chapter 13. You’ll need to take a credit counseling class and devise a plan to repay your debts.

Not guaranteed: A judge might say no even though you can ask to convert. This could happen if you owe too much money or the judge thinks you’re not being truthful. In rare cases, a creditor might also object to your request.

Filing Chapter 13 After a Chapter 7 Bankruptcy: Is This Possible?

Can you file a chapter 13 after a chapter 7 in Mississippi? The answer is yes. You can file for bankruptcy more than once, but you’ll have to wait a certain amount of time in between.

What is the Rule For Subsequent Chapter 7 Filing?

Filing for bankruptcy more than once is possible, but there’s a wait, depending on what type you filed for before.  If your first bankruptcy was a Chapter 7 and your debts were erased (discharged), you must wait 8 years before filing for another Chapter 7.  However, if your first bankruptcy was a Chapter 13 and you completed your repayment plan, the wait is shorter – only 6 years before you can file for Chapter 7 again.

What is the Rule For Subsequent Chapter 13 Filing?

Filing for Chapter 13 bankruptcy more than once is possible, but there are waiting periods depending on your last bankruptcy case. If your most recent bankruptcy was a Chapter 7 and your debts were discharged, you’ll need to wait at least 4 years before you can get another clean slate (discharge) through a Chapter 13 plan.  

However, the wait is shorter if your last bankruptcy was a Chapter 13 that you completed. In that case, you only have to wait 2 years before filing for Chapter 13 again and potentially getting another discharge.  There’s one other thing to consider: if your previous Chapter 13 case was dismissed by the court, that doesn’t count as a prior bankruptcy, and you won’t have to wait any extra time to file a new Chapter 13 case.

What Are Other Points to Take Into Account?

Even if you can’t wipe out all your debts in bankruptcy, you might still be able to file. There are benefits to bankruptcy, even without a complete clean slate.

  • Second chances with limits:  A new law makes it harder for people who file bankruptcy more than once to stop creditors from contacting them immediately. This is called the automatic stay, and it usually lasts a while. However, for people with recent bankruptcies (dismissed or discharged in the last year), the stay only lasts 30 days and might not be extended. The stay won’t apply if you’ve had two bankruptcies in the past year.
  • Bankruptcy is complicated:  Bankruptcy laws are tricky, so it’s important to talk to a lawyer who knows bankruptcy well if you’re considering filing for bankruptcy for the first time or again. They can answer your questions and help you decide what’s right for you.

File Chapter a Subsequent Bankruptcy Today!

Bankruptcy laws can be nuanced, and an experienced bankruptcy attorney can guide you through the process, ensuring you choose the right path (Chapter 7 or 13) and understand the waiting periods that apply to your situation. Their knowledge can be invaluable in maximizing the benefits of bankruptcy and ensuring a smoother, fresh financial start.  They can also answer your question definitively: Can You File Chapter 13 After Chapter 7?

The Rollins Law Firm can help. Our bankruptcy lawyers are proficient and can answer your questions clearly. They have over 10 years of experience following the law for the best results. We can help you with both Chapter 7 and Chapter 13 bankruptcy. If you need bankruptcy help, don’t hesitate to contact us. Get excellent results by choosing the right bankruptcy lawyer. Schedule a free consultation today!

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