A client recently came into my office with about $18,000 in credit card debt. He had filed Chapter 7 in early 2005, but he had taken out several credit cards after his case was completed. He had become unemployed back in 2008 for awhile, and although he was now working, he simply couldn’t get back on track with his credit card payments. He was being called all day long by his collectors, so it was hard for him to focus
He wouldn’t be eligible to file a new Chapter 7 case until 2013. The current bankruptcy laws (BAPCPA) enacted in October 2005 declared that one must wait a full eight years from the date of the filing of the last Chapter 7 case to file a new Chapter 7 case.
So, a variety of issues will have to be considered. For example, should you wait until the eight year mark has expired, and then file a new Chapter 7 case? A close examination of your income will be required. But if you make less than the median income for your State (household of one in Pennsylvania currently is $44,000, for example), then you could file a Chapter 13 reorganization and pay your creditors over just a three year period.
If you’ve been sued by a credit card company, then you may have no alternative but to file a Chapter 13 case.