You may already know that, once you file for bankruptcy -- whether it's Chapter 7, Chapter 13 or Chapter 11 -- an automatic stay is placed on creditor actions while you address your debt problems. That kind of protection is a major benefit provided under bankruptcy law.
Rapper DMX, whose real name is Earl Simmons, is apparently running pretty low on cash. Once among the top-selling hip-hop artists in history, the performer filed for Chapter 11 bankruptcy in July. He had apparently built up over a million in alimony debt, owing more than over $450,000 in mortgage debt on a New York property, and another $479,000 to unsecured creditors.
In order to get a discharge in bankruptcy, sufficient time must pass between the filing of two separate bankruptcy cases. So if a bankruptcy case is filed too soon, a discharge may not take place. While there is nothing to stop a debtor from filing bankruptcy too soon, it would be a waste of time and money to do so.
If you are filing for Chapter 13 bankruptcy and have a second mortgage, you may be able to "strip down" or "cram down" your second mortgage in something commonly referred to as "lien stripping."