When you file for bankruptcy, you get the chance to sort out your debts and receive some protection from your creditors, at least temporarily. Once your bankruptcy has been sorted out, you may be wondering if you could you file again years later if you run into financial problems. You can file again, but there are some limitations to how often you can make use of this legal process. A New City bankruptcy attorney from our firm can tell you more.
Is There a Limit to How Many Times I Can File for Bankruptcy?
There actually is no limit to how many times you can file for bankruptcy. You can file for one type of bankruptcy, like Chapter 7, and then later you can file for the same type of bankruptcy. You can also choose to file for a different kind of bankruptcy, like Chapter 13.
One thing you cannot do is decide to go into bankruptcy court and file a new case every week. There are some guardrails in place designed to ensure that people do not abuse the process.
If I File For Bankruptcy, How Long Do I Have to Wait Before Filing Again?
The main obstacle is the waiting time. You often have to wait a few years after a bankruptcy filing before you can do it again. What kind of waiting period you’re looking at can depend on what kind of bankruptcy you filed before, what kind of bankruptcy you want to file now, and how your previous case was concluded. Generally, if you have previously filed for Chapter 7 bankruptcy, you must wait:
- Eight years to file for Chapter 7 again
- Four years to file for Chapter 13
If your last bankruptcy was a Chapter 13 bankruptcy, then you must wait:
- Six years or less to file for Chapter 7
- Two years to file for Chapter 13 again
You can wait less time between a Chapter 13 filing and a Chapter 7 filing if you have paid back your creditors completely with a payment plan or if you have paid back 70% or more of unsecured debt.
What is a Chapter 20 Bankruptcy?
Chapter 20 bankruptcy is a unique situation where someone can file Chapter 7 and Chapter 13 bankruptcy back-to-back without worrying about the normal waiting periods. In this kind of bankruptcy, you would discharge any debt that you could get discharged through Chapter 7 bankruptcy, and then you use Chapter 13 bankruptcy to make a manageable payment plan for the rest of your debt. There are some rules about this and a judge could argue that you are not filing in “good faith,” so you should consult with a lawyer if this is your plan.
Contact a Bankruptcy Attorney
The decision to enter bankruptcy proceedings is one that should be carefully considered. If you are thinking about exercising this option, contact the Lauterbach Law Firm and schedule a consultation with our team. We can tell you more about the bankruptcy process, its limitations, and how you can get a fresh financial start.
