Can I File for Bankruptcy More Than Once?

Can I File for Bankruptcy More Than Once?

Yes, you can file for bankruptcy multiple times; however, the rules and time limits governing repeat filings can be complex. This is something that is very important to know if you are considering a second bankruptcy. Here’s what you need to know about filing for bankruptcy more than one time.

1. Types of Bankruptcy

The two most common types of personal bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is a liquidation bankruptcy wherein most of your unsecured debts are discharged. In contrast, Chapter 13 involves a repayment plan over three to five years. You can choose one, and later file the other, depending on the situation.

2. Waiting Periods Between Filings

There are waiting periods that you need to observe before filing when you have filed for bankruptcy once. If you filed Chapter 7 and you want to file again:

Waiting Period: You must wait eight years from the date you filed your previous Chapter 7 bankruptcy filing to file again for Chapter 7.

If you file Chapter 7 then change your mind and want to file for Chapter 13: You have to wait four years after your Chapter 7 discharge date to be eligible to file a Chapter 13.

If you filed Chapter 13 and later want to file for Chapter 7: You must wait six years from the confirmation date of your Chapter 13 plan unless you paid all unsecured debts in full or your plan lasted longer than three years.

3. Impact on Your Credit

Filing for bankruptcy, whether you file once or repeatedly, can affect your credit score. Each bankruptcy filing will appear on your credit report for seven to ten years, depending on the chapter filed. Moreover, serial filers may make it an even more challenging task to get credit in the future, as lenders will look at them as greater risks.

4. Learning from Mistakes

There is legal permission for bankruptcy for more than one time but what you need to find out is the root cause of your financial problem. Many instances exist wherein one remains in a repeated cycle of debt only because he has not planned financially and was hit by some unexpected life event or there is not enough budgeting done. Through such steps that may make your financial literacy and practice better, you might avoid bankruptcy in the future.

5. Seek Professional Help

If you want to declare bankruptcy again, that’s your next stop-mayo: a good bankruptcy attorney. They’ll explain to you the various technicalities of the law and guide you on what course of action you should take; they’ll also help you devise a plan for a more secure financial future.This article was written by Alla Tenina. Alla is the best Ventura bankruptcy lawyer, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.