Wondering how often you can file bankruptcy in Nebraska? Learn the answer, along with other useful information, in our comprehensive guide.
We have all been there. As hard as you try, you never seem to have enough money when you’re paying your expenses at the end of the month.
However, there is no shame in being broke. Many people have been furloughed or laid off because of the rapid emergence of Covid-19. If you have ever considered filing for bankruptcy in Nebraska, we have some tips.
Many people may have filed before and thought their chance of declaring bankruptcy in Nebraska was up. If you have wondered how often you can file, you have come to the right place. Keep reading for all your answers.
Considering Declaring Bankruptcy in Nebraska?
There are times when we all need a fresh start. This has been a tough year for many people. Some have lost jobs and still cannot make ends meet with unemployment checks.
Maybe you have considered bankruptcy in the past but were ashamed or afraid of what other people might think. You are in good company. You have no reason to fear because there are bankruptcy lawyers in Nebraska who can help you work through the process.
What Is Bankruptcy?
You may have heard this word thrown around in the past but still not know what it means. When you declare bankruptcy in Nebraska, you have access to a set of federal laws that help you get out of paying debts when you do not have the money to do so.
Some people owe more than they can pay. If you have ever lost a job, you know the fear of not paying your regular monthly bills, not to mention credit cards and other revolving debts. Bankruptcy laws were put in place to relieve the stress of paying out money you don’t have. Sometimes they even give creditors a way to still get paid with an agreed-upon amount.
How It Works
You may have decided that filing bankruptcy is the best decision for you, but you don’t know how to go about it. As a start, meeting with an experienced attorney is the right action to take.
If attorneys decide you should file bankruptcy, they can begin the pleading draft. First, you will file a petition with the bankruptcy court. This is when you list your assets, liabilities, and income. You will also have a list of your creditors and the amount you owe. Once the petition gets filed, it stops creditors from calling and harassing you. This can be a tremendous relief for most people.
After that, the creditors will receive a notice from the clerk of court that you have filed a bankruptcy petition. Federal courts have jurisdiction over bankruptcy cases and will give you the opportunity to pay creditors as you navigate the process.
Types of Bankruptcy
There are actually three different types of bankruptcy. You can choose to file Chapter 7, 11, or 13 depending on your situation.
Chapter 7 is the most common kind of bankruptcy people file. This is where you can clear all or most of your debts. In most cases, you have to surrender your assets. Chapter 7 can be filed by businesses or individuals. Once you file for Chapter 7 bankruptcy, all attempts to collect debts from you should stop.
Chapter 11 is used mostly by businesses. A company comes up with a restructuring plan to pay its debts. On average, companies have four months to create this plan, and it has to be in the best interest of the creditor, not the debtor.
Chapter 13 is used mostly by individuals. It is the second most popular type of bankruptcy that is filed. The purpose is to draft a plan to pay back what you owe or a portion of that over three to five years.
How Often Can You File?
There is no limit to the number of times individuals can declare bankruptcy in Nebraska. There are limits, however, on how often you may file.
For Chapter 7, you must wait eight years to have another case discharged. Chapter 13 is two years, but most plans for Chapter 13 take three to five years to resolve. You do not have to file the same type each time. The time frame between Chapters 7 and 13 is four years. If you filed Chapter 13 first, you must wait six years for a Chapter 7 bankruptcy.
If you wonder why someone would need to file more than once in a short amount of time, the answer is that life happens to all of us. You could file Chapter 7 with the best intentions to get your life in order, only to lose your job and fear losing your house. As a result, you may need to file Chapter 13 to protect yourself from foreclosure.
Is It Right For You?
Knowing your options is important. If you have more debt than you can handle right now, filing bankruptcy may be your best option. There are different types you can file to meet your specific needs. These laws were set up to help people gain a fresh start.
It is not always about getting out of our debts. Sometimes, you may need a little breathing room and the opportunity to reorganize your finances. By declaring bankruptcy in Nebraska, you may have some time to structure payments in a way that makes it manageable for you.
This process is more complicated than some may believe, and there are some considerations regarding bankruptcy that should be considered. It would help if you had legal support, and bankruptcy lawyers in Nebraska are able to help you get back on track.
Take the Next Step
If you are ready to file bankruptcy in Nebraska, we are here to assist you. While declaring bankruptcy may not be the right path for everyone, it can help those who need to regain control of their finances.
Filing for bankruptcy does not have to be as confusing as it seems. Having the right legal support is key. Call (402) 415-2525 today to find out how we can make the process easier for you!