A person cannot file a second chapter 7 case less than 8 years after the filing of a prior chapter 7. However, a person can file a chapter 13 case 4 years after the filing of a chapter 7 case.
This means if a person incurred additional credit card debt after the filing of a chapter 7 case, a person may be able to eliminate a portion or all of their additional credit card debt through a subsequent chapter 13 case.
A chapter 13 debtor must pay all of their monthly disposable income to a chapter 13 trustee for 36 to 60 months, depending on their circumstances. If the debtor is paying certain debt, such as mortgage arrears or an income tax liability through a bankruptcy plan, and there is no additional disposable income to pay any funds toward the credit card debt, the debtor may eliminate all of the additional credit card debt.
In the event that there is disposable monthly income to pay the additional credit card debt through the bankruptcy plan, the debtor need only pay the disposable income toward such debt, thereby eliminating the balance of the debt.
Please note that there are many exceptions to the above information.
New Jersey bankruptcy lawyer Robert Manchel may be reached at 1 (866) 503-5655 to answer any questions that you may have about filing for bankruptcy protection.