How Often Can You File Bankruptcy?
Financial stressors of all kinds (including job loss, injury, illness and divorce) can lead many Americans who have already been through the bankruptcy process to consider filing bankruptcy again. But, as many people know, the U.S. Bankruptcy Code limits the frequency with which an individual can file for bankruptcy protection.
It is important to note that the waiting period between multiple bankruptcy filings depends on which type of bankruptcy a person is interested in filing and which type of bankruptcy a person has filed in the past.
Multiple Bankruptcy Filings: How Long Must You Wait?
- Two Chapter 7 cases: Filers who have previously gotten a discharge under Chapter 7 of the U.S. Bankruptcy Code and seek a second Chapter 7 discharge must wait eight years between their cases. This is the longest waiting period between any multiple bankruptcy filings and reflects the sweeping debt relief that Chapter 7 bankruptcy offers.
- Chapter 7 after Chapter 13: Filers interested in submitting a Chapter 7 bankruptcy petition must wait at least six years after receiving a Chapter 13 discharge from the court.
- Chapter 13 after Chapter 7: Filers interested in submitting a petition for Chapter 13 bankruptcy must wait at least four years after receiving a Chapter 7 discharge. This waiting period reflects the nature of both Chapter 7 and Chapter 13 bankruptcy: while the filer had many debts fully discharged in the first bankruptcy case, he or she will repay many of them in the second bankruptcy case.
- Two Chapter 13 cases: If a filer needs Chapter 13 bankruptcy protection twice, he or she is only required to wait two years after receiving a discharge to file again.
Re-Filing a Bankruptcy Petition
If, for some reason, a bankruptcy filing is dismissed by the court prior to discharge, most filers must wait before resubmitting a new petition, either under the same chapter or a different chapter.
If the case was dismissed for failure to obey a court order or voluntarily requested to be dismissed, you must wait a period of 180 days before filing a new petition.
Filers who filed a case any time in the last year only to have it dismissed face additional hurdles: the automatic stay will not be applied to the case, meaning creditors can still pursue collection efforts. Filers have 30 days to request the protection of the stay and must prove that their filing is not abusive.
Converting a Bankruptcy Case
In addition to those who need to file for bankruptcy more than once, some filers find that they need to convert a bankruptcy case.
Certain circumstances permit filers to convert a Chapter 13 bankruptcy case to a Chapter 7 bankruptcy case – for example, if a filer unexpectedly lost his or her primary source of income and was unable to continue making payments according to the repayment plan, a Chapter 7 conversion might be an option.
If you’re interested in learning how often you can file bankruptcy, you can take advantage of this offer for a free consultation with a bankruptcy lawyer practicing in your state.