Can I File for Two Types of Bankruptcy at the Same Time?


Is there ever a situation in which a person or entity can file for two types of bankruptcy at the same time? For instance, if you are a business owner and have a struggling business, and you are also having immense difficulty with your own personal finances, can you file for two different forms of bankruptcy at the same time?
Generally speaking, the Bankruptcy Code clarifies that an individual cannot file for two different types of personal bankruptcy at the same time, such as Chapter 7 and Chapter 13 bankruptcy. Likewise, a corporation cannot file for two different types of bankruptcy at the same time, such as Chapter 7 and Chapter 11 bankruptcy. For a single entity to file for two different types of bankruptcy, there are timetables and waiting limits for multiple discharges. We will talk you through the waiting times if you want to file for bankruptcy twice, and then we will explain scenarios in which a business owner could end up in two different types of bankruptcy proceedings at the same time.
Filing for Bankruptcy Twice as an Individual (or as a Corporation)
If you are thinking about filing for bankruptcy, or if you are in the middle of a bankruptcy case, or if you have recently had a bankruptcy discharge: Can you file for bankruptcy again? Whether you are an individual or a corporate entity, you typically cannot file for two different types of bankruptcy at the same time. However, you may be able to file for two bankruptcies back-to-back depending on your circumstances.
Whether you recently filed for bankruptcy or are in the middle of a bankruptcy case, you will need to abide by a waiting period if you recently received a bankruptcy discharge. The waiting times vary depending upon the type of bankruptcy you want to file. If you want to file for Chapter 7 bankruptcy, in most situations you will not be able to receive a discharge if you received a Chapter 7 or Chapter 11 discharge in the last eight years, or if you received a Chapter 13 discharge in the last six years. If you want to file for Chapter 13 bankruptcy, you will not be able to receive a discharge if you received a previous Chapter 13 discharge in the last two years, or a Chapter 7 or Chapter 11 discharge in the last four years.
There are some exceptions, and you should speak with a bankruptcy lawyer about your particular situation.
When an Individual and a Business File for Bankruptcy
When it comes to filing two types of bankruptcy at the same time, the scenarios in which this might happen are those in which both an individual and a corporation (of which the individual may be a shareholder or have an interest) file for bankruptcy at the same time. For example, an individual debtor might file for Chapter 7 or Chapter 13 bankruptcy to deal with personal debts, and at the same time, that individual might have a stake in a corporation that has filed for Chapter 7 or Chapter 11 bankruptcy. Technically, when a corporation files for bankruptcy, it is not the individual filing. Yet this is a situation in which one party could be involved in two different bankruptcy cases at the same time.
Keep in mind that business owners who are sole proprietors do not have separate individual finances and business finances—they are all wrapped up together, so that individual could not file for personal bankruptcy and separate corporate bankruptcy at the same time. Rather, an individual filing would be necessary to manage business or personal debt.
Seek Advice from an Oak Park Bankruptcy Lawyer
If you have questions about bankruptcy, an Oak Park bankruptcy attorney can assist you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more