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Bankruptcy Discharge Calculations
for debtors who have gone through a previous bankruptcy.
Is your client filing for a second bankruptcy?
Here is a simple table categorizing the bankruptcy discharge calculations and legal grounds for said decisions.
Debtor Filing for Chapter 7 | Discharge Allowed? | Legal Grounds for Decision |
---|---|---|
Dismissed within past 180 days | No | Cannot file for Chapter 7 if previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because: (1) debtor violated court orders; or (2) debtor requested the dismissal after a creditor requested relief from the automatic stay. (11 §109(g)) |
Previous Chapter 7 discharge or Chapter 11 discharge granted in a case filed within the past 8 years. | No | Cannot file for Chapter 7 if debtor obtained a discharge of debts under Chapter 7 or Chapter 11 in a case filed within the past 8 years. (11 §727(a)(8)) |
Previous Chapter 12 or Chapter 13 discharge granted in a case filed within the previous 6 years. | No 1 | Cannot file for Chapter 7 if debtor obtained a discharge of debts under Chapter 12 or Chapter 13 in a case filed within the previous 6 years. (11 §727(a)(9)) |
1 unless debtor obtained bankruptcy discharge in good faith after paying at least 70% of unsecured debt.
Note: The above 8- and 6-year periods run from the date of the filing of the earlier bankruptcy, not the date of the bankruptcy discharge.
Debtor Filing for Chapter 13 | Discharge Allowed? | Legal Grounds for Decision |
---|---|---|
Previous Chapter 13 discharge granted in the last 2 years. | No | Time elapsed between bankruptcy discharge of old Chapter 13 case and date of filing new Chapter 13 case must be more than 2 years. (11 §1328(f)(2)) |
Previous Chapter 7, Chapter 11, or Chapter 12 discharge granted in a case filed within the last 4 years. | No | Time elapsed between bankruptcy discharge of old Chapter 7, Chapter 11, or Chapter 12 case and date of filing new Chapter 13 case must be more than 4 years. (11 §1328(f)(1)) |
Note: In Chapter 13, time period is measured from filing date of old case to filing date of new case.
Note: A debtor is not barred from filing for Chapter 13 in the above circumstances (but debtor cannot receive a discharge).