It is nearly impossible for Texas residents to predict when they will encounter serious financial difficulties. Perhaps a consumer had this problem in the past, and used Chapter 7 bankruptcy in order to gain a fresh financial start. Things may have gone well for some time, but then something happened to undo that progress. Perhaps an injury or illness, a job loss or a divorce caused another financial crisis.
Under these circumstances, it would make sense for a Texas resident to consider filing bankruptcy again. The first question that requires answering this time is how often this debt relief option may be used? The answer depends on a few factors. First, if the prior bankruptcy did not end with a discharge because it was dismissed, a consumer can file right away.
If a discharge was received in a prior Chapter 13 bankruptcy, a consumer must wait two years before filing another Chapter 13 and six years before filing a Chapter 7. If the prior case was a Chapter 7, he or she must wait eight years before filing another Chapter 7. If a consumer wants to file a Chapter 13 after a Chapter 7 discharge, at least four years must pass first.
Other than the time limits for filing a subsequent bankruptcy, other factors determine whether a Texas resident can file a Chapter 13 or Chapter 7 bankruptcy. Just because one type was filed in the past, it does not guarantee the same chapter may be filed again. Financial situations can radically change, which could preclude an individual from making the same filing this time. For this and other reasons, gaining a thorough understanding of the qualifying factors for each type of filing is essential before moving forward.