While there are time limitations for receiving a second discharge, in bankruptcy there are other ways to protect your home under the bankruptcy code. Let’s address the time limitations first. If you received a discharge under Chapter 7, you will not be eligible to file another Chapter 7 case in which you will receive a discharge until 8 years after the first case was filed. To receive a discharge under Chapter 13, you must wait 4 years after filing for Chapter 7 before you file the new case. If you received a discharge under Chapter 13, you must wait 2 years from the date that you filed the first case before filing a new Chapter 13 case in which you will be eligible for a discharge.
Even if the time limitations above prevent you from receiving a discharge, a Chapter 13 personal reorganization can still help save your house from foreclosure. Both your current mortgage payments and any arrearage can be scheduled in a new Chapter 13 plan. The moment your case is filed, you are protected by the automatic stay. This will prevent foreclosure, garnishment, harassment, or any other collective action against you while your case is active.
After successful completion of your Chapter 13 personal reorganization, you should be completely current on your mortgage and can continue on with your regular payments. You should keep in mind, however, that the inability to receive a discharge will affect how other debts are treated in your Chapter 13 plan. Most importantly, you will be protected from contact or harassment from these creditors and could possibly eliminate those other debts through your plan.
In the end, it is imperative that you consult with an experienced attorney before you take any action. Please contact our office nearest to you to set up a free private and confidential consultation visit with one of our licensed attorneys.