Bankruptcy filings skyrocketed in the weeks and days before the current bankruptcy laws took effect October 17, 2005.
The perception was it would be much more difficult to file AFTER the bankruptcy laws changed.
Well, it has not turned out the way that creditors hoped. Of course, filings were down after the 2005 rush, but there were still over a million bankruptcy cases filed last year.
Under the old law, you could not file another Chapter 7 case for 6 years. You may wonder why people would need to file again so soon, but, I have filed 3rd and 4th bankruptcies for some people. It was not unusual for others to contact me about filing bankruptcy 5 or five and one-half years after a prior Chapter 7 bankruptcy case.
Credit was looser back in those days. It takes two to go into debt, a borrower, and a willing lender. Why banks were rushing to lend to people just out of bankruptcy beats me.
Well, not exactly.
Greed. The creditor knows you cannot file again for years. And, you did just get a discharge of your debts. If you have income, you should be able to re-pay a loan. And, they get to charge higher interest because of your bad credit.
Anyway, one of the 2005 changes replaced the prior 6 year time limit between Chapter 7 cases with the current 8 year limit.
The time runs from the FILING DATE of the Chapter 7 bankruptcy case, not the day you saw the attorney, or the day you went to court, or the date of the bankruptcy discharge.
Filing date to filing date.
Technically, you can file a Chapter 7 anytime. It is just that you cannot get a discharge of your debts, if you received a discharge in a prior Chapter 7 case filed within 8 years. (11 USC 727)
I cannot think of a reason why anyone would want to file a Chapter 7 when they could NOT get a discharge of debts. That is the point of filing, to get out of debt.
However, if you filed a Chapter 7 case that was dismissed; you did not get a discharge, you do NOT have to wait 8 years before re-filing.
If this is an issue for you, check with an attorney to verify you have the dates right.