by David Shaev, Esq.
Of Counsel, The Siskind Law Firm

               Generally, there is an 8 years requirement from the filing of a chapter 7 petition to the filing of a new petition. There is also a 4 year waiting period to file most chapter 13 petitions after the filing of a chapter 7 petition. However, there are certain situations which may differ from these rules. Although a client may not qualify to file a Chapter 7 bankruptcy, or 4 years have not passed since filing the prior chapter 7 bankruptcy, there may still be reasons to investigate a chapter 13 bankrupty although a discharge of debts may not be available. Why would anyone consider filing a Chapter 13 bankruptcy if their debts would not be discharged?

              Here are several examples:

               1. Let’s take the example of an individual who filed a Chapter 7, was granted a discharge of debts and now, less than 4 years later has incurred new credit card debts which demand monthly payments that the individual cannot afford. POSSIBLE SOLUTION: WE CAN TAKE THE DEBT AND CALCULATE WHETHER THE CLIENT CAN MAKE THE PAYMENT IN MONTHLY INSTALLMENTS OVER A PERIOD UP TO 60 MONTHS (5 YEARS) IN A CHAPTER 13 BANKRUPtCY! And, the interest and penalties would stop when we file.

               2. Let’s take the example of an individual who filed a Chapter 7, was granted a discharge, except for certain debts such as student loans or taxes.POSSIBLE SOLUTION: WE CAN PAY THE NON DISCHARGEABLE DEBTS THROUGH A CHAPTER 13 BANKRUPTCY IN MONTHLY INSTALLMENTS OVER A PERIOD UP TO 60 MONTHS!

               3. Let’s take the example of an individual who filed a Chapter 7, was granted a dishcarge, but still owes student loans which demands monthly payments that are impossible for the client to meet.POSSIBLE SOLUTION: WE CAN PAY A SUM THAT THE CLIENT CAN AFFORD FOR A PERIOD OF UP TO 60 MONTHS! In this instance, however, the balance of the student loans would still be due after completition of the bankruptcy together with any unpaid interest.

               Why would a client consider a Chapter 13 bankrupty without a discharge of debt? Simple answer: to allow the client to LIVE the next 5 years without harassment, bank restraints, income execution and the worry that the client cannot pay his or her rent!