While bankruptcy may be an effective way for Kentucky residents and others to reorganize or eliminate debt, there are limits to how often a person can file. In some cases, those who egregiously abuse the bankruptcy system may be barred from using it again after their cases are dismissed. Individuals who are allowed to file for bankruptcy multiple times may only get a limited automatic stay or no automatic stay of creditor activity. This means that creditors may be able to contact a debtor, garnish wages or file a lawsuit.

If a stay is not automatically granted, an individual may ask a judge to put one in place. It may also be possible to ask to extend a stay beyond 30 days from the time a case is filed. When considering a person’s request, a judge will look at how many cases a person has filed in the past year or several years. He or she will also examine the reasons why previous cases were dismissed when determining whether a stay will be granted or extended.

Bankruptcy cases can be dismissed for a variety of reasons such as failing to stick to a repayment plan or because of an attorney error. Finally, an automatic stay could be put into place or extended if a debtor’s circumstances have recently changed.

Those who are looking to reorganize their debts may be able to do so by filing for bankruptcy. Filing for Chapter 13 protection may allow a person to retain a home, car or other property while repaying creditors. Those who file for a reorganization bankruptcy will typically make payments over a period of three or five years depending on their level of disposable income. Any debt balances that remain after the repayment period ends may be discharged.