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The number of times you can file for Chapter 7 in Tennessee

On Behalf of | Feb 2, 2023 | Chapter 7 Bankruptcy |

In Tennessee, you can file for Chapter 7 bankruptcy as many times as you need to, but there are strict rules you will need to observe to do so successfully. Most importantly, you must wait for a few years from your previous discharge to file for another. In some cases, there may be no waiting period.

Understanding how Chapter 7 bankruptcy works

Chapter 7 bankruptcy is a type of liquidation bankruptcy that can provide debt relief to those facing significant financial hardship. It is often known as a “fresh start” for consumers because it allows them to discharge their debts and get back on their feet financially.

The waiting period

After completing your Chapter 7 bankruptcy case, you will have to wait eight years before you can file for another. The main reason for this requirement is to prevent people from abusing the bankruptcy system. The waiting period allows you to rebuild your credit and get back on track financially before filing again. Furthermore, it gives you time to assess your financial situation and find other solutions for debt relief, such as a consolidation loan or working with a credit counseling service.

In certain cases, the court may be willing to waive this waiting period. For example, when you have a financial emergency or an unexpected medical issue. Also, if you paid all of your creditors’ claims in your previous Chapter 13 case, the courts can remove the waiting period because you showed “good faith” in making payments.

If you are considering filing for Chapter 7 bankruptcy, it is important to make sure it is the right decision for your situation. Even though it is one of the best ways to deal with financial hardships, it can come with some inconveniences, like staying on your report for ten years or having difficulty obtaining credit in the future.