Filing for Bankruptcy After Bankruptcy in North Carolina

Filing for bankruptcy after having previously filed in North Carolina can be a complex process, but understanding the key aspects can make it more manageable. Many individuals may find themselves in a situation where they need to declare bankruptcy again due to unforeseen financial hardships. This article outlines important considerations and the steps necessary when filing for bankruptcy after bankruptcy in North Carolina.

In North Carolina, the type of bankruptcy you might file again depends on how long it has been since your previous bankruptcy discharge. The two most common types of personal bankruptcy filings are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often referred to as "liquidation" bankruptcy. If your previous Chapter 7 bankruptcy was discharged more than eight years ago, you may be able to file for Chapter 7 again. This type of bankruptcy allows individuals to eliminate most unsecured debts, such as credit cards and medical bills, and provides a fresh financial start.

Chapter 13 Bankruptcy
On the other hand, if your last bankruptcy was Chapter 13, which is a form of reorganization bankruptcy where individuals create a repayment plan, you can file a new Chapter 13 bankruptcy after just two years from the date your previous case was filed. During this time, you will still work under a court-approved repayment plan for eligible debts.

When filing for bankruptcy after a previous bankruptcy, the timing is critical. The waiting period can have a significant impact on your ability to discharge debts, as outlined in the bankruptcy code. It's essential to maintain accurate documentation and be transparent about past filings, as failing to do so can lead to complications or dismissals.

The process for filing again also involves mandatory credit counseling. Before filing, you must complete a credit counseling course and obtain a certificate from an approved agency. This requirement applies to all bankruptcy filings, ensuring that individuals understand their financial situation and explore alternatives to bankruptcy before proceeding.

Another critical aspect to consider is the impact of a second bankruptcy filing on your credit report. While a bankruptcy can remain on your credit history for up to ten years, a second filing will not completely erase the effects of the first. However, individuals may find that with time, responsible financial behavior can improve their credit score.

Working with a Bankruptcy Attorney
Given the intricacies involved in filing for bankruptcy after having done so before, it is highly advisable to seek guidance from a qualified bankruptcy attorney in North Carolina. An attorney can help you navigate the process, ensure compliance with state and federal laws, and provide tailored advice based on your specific circumstances.

In conclusion, filing for bankruptcy after bankruptcy in North Carolina is a viable option if you meet the requirements for a new filing. Understanding the types of bankruptcy, timelines, and the importance of legal assistance can empower individuals facing financial difficulties. If you find yourself considering a second bankruptcy, take the first step towards regaining your financial footing by consulting with a knowledgeable bankruptcy attorney today.