Whoops! Second Bankruptcy
Bad Debt Consolidation by splinder
Filed under Bankruptcy
You can file for second bankruptcy only after a gap of six or eight years (in some cases). Second bankruptcy becomes essential when you fail to recoup financial stability after the first try. Though due to the tough scrutiny, getting accepted for the second time is tough. The application must show (with proof) the urgency of filing for bankruptcy or face rejection either through the means test or an attorney evaluation.[br]
Evaluate Before Filing for Second Bankruptcy
The rules differ a little for second bankruptcy. Debtors are not eligible for an automatic bankruptcy discharge in nine months as is the case with first bankruptcy. As per a ruling-under-process, ‘automatic discharge’ will take place in 24 months if there is no surplus income. Here surplus income is defined as the amount of money a debtor earns over the government threshold in a month. Debtors with a surplus income will have to wait for 36 months.
Second bankruptcy is pushing the credit score down the spiral. Therefore, it is wise to evaluate all possible options before filing. Debtors should consider its implications, including the delayed discharging. A safe approach is to consult a bankruptcy attorney and look around for no charge first consultations. Once the appointment with an attorney is fixed, take along all your income and debt proofs. Show him how there is an overage of debt.
Un-discharged Debt and Second Bankruptcy[br]
Filing for second bankruptcy can hit rough water if a consumer incurs debt during the first bankruptcy. This is legally challengeable especially if the debt was not disclosed to the new creditors. It is for these reasons that people need to exercise caution while using credit during the bankruptcy period. A rather comforting facility like debt consolidation loan therefore may turn harmful than delivering the goods that it claims to. In fact the legal ramifications could be forced bankruptcy orders or even prosecution.
Debtors should also know that people with un-discharged debt from the first bankruptcy are not eligible for automatic discharge in their second bankruptcy if this situation has occurred in fifteen years before their current bankruptcy.