One of the biggest misperceptions regarding bankruptcy out there these days, is that if you have filed bankruptcy just a few years ago, you cannot file again. This is not true. Even if you have filed a Chapter 7 less than 8 years ago, you can still get significant relief.
Creditors often tell debtors that they can’t file bankruptcy if they filed 8 years ago or less. Not true. If you need relief again in an 8 year period, you can file a Chapter 13 bankruptcy.
Reality of a Chapter 13 Repayment Plan
Chapter 13, contrary to common opinion, does not require you to pay back all your debt. It only requires you to make a good faith effort to essentially pay what you can afford. Usually, for people who have filed previously, this translates into monthly payments of between only $125 and $150 a month for three years.
Sometimes they can be even lower. And by making your payments for 36 months as agreed, your debt, regardless, of how much it is, will be discharged. Not a bad deal and like a Chapter 7, Chapter 13 bankruptcy will stop garnishments and creditor harassments. Chapter 13's are complicated and anyone qualifying for one should consult an attorney as soon as possible to learn more.