Can I File Bankruptcy Twice In Nevada?
Bankruptcy is a powerful tool that can help people struggling with debt emerge from it with a clean slate. However, it doesn’t mean that everyone who files will never struggle with debt again. Some people fall into old spending habits, or go through a divorce or a medical emergency. Additionally, the COVID-19 pandemic devastated the Nevada job market in 2020. If you’re a resident of Nevada who has declared bankruptcy in the past, you may also find yourself in a similar situation- avoiding calls from unknown numbers, juggling credit cards and interest payments, and worrying about a repossession or wage garnishment from one of your creditors. While you may have told yourself that you would only file for bankruptcy once in your life, circumstances change, and bankruptcy may be able to help you again. Read on to learn more about filing bankruptcy for a second (or subsequent) time in Nevada.
Bankruptcy Waiting Periods In Nevada
If you have discharged your debts in bankruptcy once, there will always be a mandatory waiting period before you can do so again. These will vary based on the chapter you file the first time, and the chapter you wish to file the second time. Chapter 13 bankruptcy waiting periods are generally shorter than Chapter 7 waiting periods. If you have filed Chapter 7 bankruptcy in the past and wish to file under Chapter 7 again, you must wait 8 years from the original filing date. You will need to wait four years if you want to go from Chapter 7 to Chapter 13.
The waiting periods work differently if you first discharged your debts in Chapter 13 bankruptcy. The waiting period between two Chapter 13 bankruptcies is 2 years, but a Chapter 13 bankruptcy payment plan lasts 3 or 5 years, so this waiting period rarely comes into effect. The waiting period to file a Chapter 7 bankruptcy after a Chapter 13 is 6 years. However, if you paid off at least 70% of your unsecured debts in your original Chapter 13 bankruptcy, the waiting period is waived. Keep in mind that these are all waiting periods before you can discharge your debts in bankruptcy- you can still file a bankruptcy knowing that your debts won’t be discharged before these waiting periods have elapsed.
Why Would Someone File Bankruptcy When Their Debts Can’t Be Discharged?
Sometimes it is beneficial to declare bankruptcy, even though debts won’t be discharged in the end. When you have debts that can’t be discharged, you can still pay them off in your Chapter 13 bankruptcy plan. Let’s say, for example, that your wages are about to be garnished for your student loans. You may find it preferable to file a Chapter 13 bankruptcy and make payments on your loans for 3-5 years rather than have your wages be garnished. Your creditor may not be willing or able to work out a more reasonable payment plan without a bankruptcy filing. Other examples of non-dischargeable debts include domestic obligations and certain tax debts.
The Automatic Stay & Multiple Bankruptcy Filings In Henderson, Nevada
One of the main reasons that people declare bankruptcy is because of the Automatic Stay. The Automatic Stay protects debtors in an active bankruptcy from repossessions, home foreclosures, wage garnishments, lawsuits, bank levies, and more. In most cases, the Automatic Stay will last from when the case is filed until it is discharged or dismissed. Keep in mind that this is typically 3 to 6 months for a Chapter 7 bankruptcy, and 3 or 5 years for a Chapter 13 bankruptcy. However, there are exceptions for when someone files bankruptcy multiple times in a short period of time.
You will need to file a motion with the court that explains why your bankruptcy filing isn’t in bad faith. You will need to attend a hearing on the matter less than 30 days after the petition filing. All of your creditors and trustees will need to be served the petition and all documents regarding the Automatic Stay extension. You are more likely to be granted an extension when the subsequent bankruptcy filing came due to a circumstance outside your control, such as attorney error or a medical emergency. The court is less likely to grant an extension if you are just trying to avoid a repossession or other creditor action. The trustee will be required to grant you an extension if you can’t submit 521 documents or attend your 341 Meeting of Creditors due to a natural disaster, as long as the trustee is notified.
What Happens To My Debts That Weren’t Discharged The First Time?
After your first bankruptcy, you may have been left with debts that weren’t discharged. Some debts may be entirely non-dischargeable, while others may just not meet certain requirements to be discharged in your first bankruptcy. If your previous case was dismissed for procedural errors, you should still be able to discharge your debts in a subsequent bankruptcy. However, if the court denied your discharge, you may be ineligible to discharge the debts listed in your first petition in your second bankruptcy.
Hire An Experienced Henderson Attorney To Help You With a Second Bankruptcy Filing
Henderson Bankruptcy Attorneys
1489 W. Warm Springs Rd., Ste. 110
Henderson, NV 89014
Phone: (702) 899-3328