Filing a Third Bankruptcy Case Within 12 Months
A debtor filed for bankruptcy twice within a twelve month period. She tried to keep up with the second bankruptcy, a Chapter 13 plan, but became very ill and was unable to make her payments.
Now the creditors are again trying to collect from her, and she would like to file for bankruptcy a third time. Can she qualify for another bankruptcy case, a third within a year?
Re: Filing a Third Bankruptcy Case Within 12 Months
Bankruptcy law creates a statutory presumption that the third case filed within a twelve month period would be made in bad faith, but that presumption may be overcome by clear and convincing evidence. The debtor may be able to use the evidence of her illness to overcome the presumption so that a court allows a third case to proceed.
This will be a difficult burden for her to overcome, and she will have to file a motion with the bankruptcy court in order to do so, so it would make sense for her to work with an experienced bankruptcy lawyer.