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Can You File for Bankruptcy More Than Once?

Published on Jul 16, 2024 at 7:40 pm in Bankruptcy.

Can you file for bankruptcy more than once?

An approved bankruptcy helps individuals and businesses get out from under a mountain of debt to build a stronger financial future. However, sometimes, those plans for staying out of debt after bankruptcy can be disrupted by life events. For instance, according to data collected by The Kaiser Family Foundation, 41% of Americans carry some medical debt.

Incurring more debt might have you wondering if you can file for bankruptcy more than once. Whether you can file for a second bankruptcy depends on the type of discharge you have already received from the United States Bankruptcy Court. These laws limit how fast you can file, especially if you’ve done so before.

The Basics of Chapter 7 and Chapter 13

As an individual declaring bankruptcy, your only options are to file for Chapter 7 or Chapter 13. With Chapter 7, you will repay your debts from the proceeds of selling off any property or assets. A Chapter 13 filing allows you to repay those debts on a strict payment plan.

Remember that there are several categories of secured and unsecured debt that will not be discharged with either type of bankruptcy. These debts include overdue alimony, child support, and student loans. Unpaid taxes are also excluded from a bankruptcy discharge.

Chapter 7 Bankruptcy Refiling Limitations

If you have successfully discharged a Chapter 7 bankruptcy, you must wait eight years before refiling. Most Chapter 7 filings can be completed in three to four months. The courts set those time limits to prevent individuals from taking advantage of creditors.

A person who previously filed Chapter 13 and reached a discharge must wait six years before they can file for Chapter 7. A Chapter 13 discharge typically happens within three to five years. One exception would be if you have repaid at least 70% of your debts. That might allow you to refile sooner.

Chapter 13 Bankruptcy Refiling Limitations

After completing a Chapter 13 repayment plan, you must wait two years to refile. To file for Chapter 7, you must wait four years after your Chapter 13 discharge. An approved Chapter 13 can prevent your home from being foreclosed or your car repossessed.

Refiling After Dismissal

There are specific scenarios where the court will not approve your bankruptcy filing. It could be that you filed for the wrong Chapter or you didn’t meet the requirements.

In that case, you can refile after waiting a year. If you do refile, you would only benefit from having a stay to keep the creditors from making collection attempts for just a month.

If you have had more than two dismissals, there might not be any stay issued. The exception would be if you file a motion with the bankruptcy court to activate the stay.

Finding the Right Information

When approaching any bankruptcy, there are options to explore. The Belsky & Horowitz, LLC team can discuss bankruptcy and other debt relief options with you and recommend the best way forward. Ignoring your debts won’t make them go away. Call to schedule a consultation to discuss your finances and explore the bankruptcy types.

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