How long after you make a debt can you file bankruptcy?

Answer 1

This is a difficult question to answer since different debts are treated differently, and since circumstances can so drastically change the results. To begin with, please see 11 U.S.C. 523, which states: "(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt- ... (C) [which are] consumer debts owed to a single creditor and aggregating more than $1,000 for "luxury goods or services" incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; "luxury goods or services" do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act...." So, credit cards and loans for luxury items incurred within 60 days before the petition is filed are presumed to be non-dischargeable. However, creditors can come after you for debts incurred virtually any amount of time before a bankruptcy is filed if they feel that they can prove to the Court that the debtor incurred the debts in anticipation of filing bankruptcy on those debts, or if the creditor can show that the debtor was insolvent at the time the debts were incurred and knew or should have known that he or she could not afford to repay them. Most debtors I see wait at least 60 days after any debt is incurred prior to filing a bankruptcy. What seldom ever works is when a debtor goes and runs up a bunch of credit cards or payday loans and then waits 60 days and files thinking they're beating the system: creditors aren't stupid, and if they see a spending "spike" prior to a bankruptcy filing (even outside of 60 days) they will sometimes object. Bankruptcy is only designed for honest, hardworking people who suffer financial hardship, so it is best to ensure that the debts on which one files bankruptcy are honest debts. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

Answer 2

Under the bankruptcy laws effective on October 17, 2005, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago. The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago.

Answer 3

Seven years.

Answer 4

No waiting period