If you’ve already filed for bankruptcy before and are currently experiencing financial troubles, you may feel the need to file for bankruptcy again. When you’re faced with such circumstances, the first question to come to mind is how often you can file for bankruptcy. According to debt lawyers, it’s possible to file for bankruptcy more than once. In fact, you can file as many times as you need to, but there’s a waiting period that needs to pass between filings. Additionally, there are a few other factors you’ll need to consider prior to filing. Here’s what you should know about filing for bankruptcy more than once.
Factors That Affect How Long You Need To Wait
You’ll need to wait at least two years before being allowed to file for bankruptcy again. The waiting period can be longer depending on whether you previously filed for Chapter 7 or Chapter 13. Here are some of the factors that affect how long you need to wait before filing a second time:
- When you filed for bankruptcy the first time, was your debt discharged?
- What type of bankruptcy did you file for? There are different waiting periods after Chapter 7, which is liquidation, and Chapter 13, which is repayment.
- What bankruptcy are you filing for now?
- How much time has passed since the initial discharge?
To put it simply, there aren’t any legal restrictions on the number of times you can file for bankruptcy, just specific waiting times.
Federal Law Restrictions on Receiving a Debt Discharge
Federal law places restrictions on how often you can receive a debt discharge in a specific amount of time. Technically, you can spend the time and money it takes to file for bankruptcy as soon as you receive an initial discharge. However, it’s likely that the court won’t grant a second discharge for many years.
Filing For Bankruptcy Again Without Receiving a Discharge
If the first time you filed for bankruptcy didn’t end with a discharge, it’s likely that you’ll be able to file for bankruptcy a second time almost immediately. That’s because your case was dismissed, so you’re still in the same position, debt-wise. Of course, keep in mind that the court has certain grounds for dismissing a case, so you’ll need to address those issues for a better chance of receiving a discharge. These include:
- Not filing all the required documents.
- Not submitting necessary paperwork on time.
- Failure to be present during a required meeting with the court.
- Hiding information from the court or failing to make required payments
Errors like these indicate poor judgment, which is why it’s recommended to consult expert debt relief lawyers for help.
Ignoring a court order or failing to appear for a hearing are both common examples of reasons for dismissal. In these cases, the court may order a six-month waiting time before you’re allowed to file again.
Filing Again After A Previous Discharge
If you successfully received a discharge after filing for bankruptcy the first time, different waiting periods can apply when filing for bankruptcy a second time. More importantly, these waiting periods are based on the date you filed for bankruptcy, not when you received a discharge.
Filing Bankruptcy Under The Same Chapter Twice
- Chapter 7: After a successful Chapter 7 bankruptcy discharge, you’ll need to wait eight years to file for 7 Chapter again.
- Chapter 13: The shortest waiting time is if you file for Chapter 13 a second time. You’ll need to wait two years from the date of your first filing to file for Chapter 13 a second time.
Filing for Chapter 7 Bankruptcy After Chapter 13 Bankruptcy
If you want to file Chapter 7 bankruptcy after receiving a Chapter 13 discharge, you’ll need to wait for six years. The waiting period can be waived if you paid your unsecured creditors in full when you previously filed for Chapter 13 bankruptcy. It’s best to consult an attorney if you’re considering this option.
Filing for Chapter 13 Bankruptcy After Chapter 7 Bankruptcy
If you need to file Chapter 13 after receiving a Chapter 7 discharge, you’ll need to wait for about four years. This is a common approach among people who used Chapter 7 bankruptcy to discharge certain debts in the past and need more time to catch up on certain debts that weren’t discharged. The same applies if their current repayment plan is unsuitable. This combination is also referred to as Chapter 20, though it’s not a legally recognized term.
Alternatives Your Debt Lawyer May Recommend
If you’re still on the fence about filing bankruptcy a second time, it’s worth considering other options. A debt attorney can discuss other available options, such as debt settlement and debt consolidation. Settlement is preferable for unsecured debts such as medical or credit card debt, as you’ll pay a certain amount to creditors to settle your debt. In debt consolidation, you’ll combine various unsecured debts into a single payment that’s made at a low interest rate. This method requires making regular payments, a consistent source of income, and, in some cases, a credit score of at least 670.
Is It Bad To File Bankruptcy More Than Once?
While filing bankruptcy again isn’t ideal, it’s possible that you faced similar circumstances that required you to file for bankruptcy in the first place. That being said, filing for bankruptcy a second time can be important in some situations. If you’ve prepared a repayment plan with your bankruptcy Chapter 13 attorney, filing a second time could be the most suitable way to navigate poor financial conditions.
Nevertheless, you should consider the consequences of filing for bankruptcy before filing again. This includes a negative impact on your credit score, though leaving debts unpaid will take a toll on your financial status as well. As long as you’ve thought things through with expert debt relief lawyers, filing for bankruptcy a second time can help you get a fresh start and move forward.
