Can I File for Bankruptcy More Than Once?

The term 'bankruptcy' can bring a lot of questions, particularly when you have no prior knowledge. But don't worry, we are here to give you detailed answers and make you aware of the best practices. 

Whether I can file for bankruptcy more than once or not!

The quick and short answer to the question is, Yes, it is absolutely possible to file bankruptcy more than once. In fact, you can file bankruptcy as many times as the need arises because there are no particular limits whatsoever as to how many times you can file for bankruptcy. But having said that, there are some duration limits though before you discharge your debts.

Let's have a closer look!

How Often Can I Declare Bankruptcy? 

We need to understand the limitations and exceptions clearly. For instance, under which section are you going to file your new bankruptcy, and after how much time!

The time limit certainly depends on which type of bankruptcy you are going to file. So if you have previously filed for Chapter 7 bankruptcy, then you will have to wait for eight years before you can file another case under Chapter 7 bankruptcy. But you can file for Chapter 13 bankruptcy after the completion of four years from the date you last filed Chapter 7.

In case you previously filed Chapter 13 bankruptcy, then you can only file Chapter 13 bankruptcy again after a period of two years; and Chapter 7 bankruptcy after 6 years.

Exception:

The only exception when you can file chapter 7 bankruptcy immediately is when you have paid 100% of the outstanding debts. These debts are the ones that you owed to all the unsecured creditors such as credit card debt, utilities, medical bills, or any student loan as part of your Chapter 13 bankruptcy filing. Or after paying at least 70% of the claims in your Chapter 13 case. You need to have a proposed plan in place and must put the best efforts to repay your creditors.

Does the Frequency of Filing Bankruptcy affect Debt Discharge?

Yes, it does. If you file for bankruptcy within 2 years of filing your previous Chapter 13 bankruptcy, then you will not be entitled to a discharge in the new bankruptcy case. For those who need clarification on what is a Bankruptcy Discharge – It happens when all your qualifying debts are wiped with the court’s order. It is given at the end of a successful bankruptcy.

Since debt discharge is the primary goal for most of the bankruptcy filings, we must understand the time limits on repeat discharges for better judgment on when to file a case again.

As we discussed earlier, in order to get a full discharge of your debts in a Chapter 7 bankruptcy, you must have paid your unsecured creditors 70% or more in your previous Chapter 13 bankruptcy. And if not, then you will not be entitled to a discharge.

When can you not file for bankruptcy?
Are there any exclusions?

You can’t file for a bankruptcy case under any chapter for a period of 180 days after the dismissal of your last bankruptcy case. Other factors which make you ineligible to file bankruptcy include requests previously made to the bankruptcy judge, also called motions. Filing a bankruptcy case by the debtor(you) when ineligible will result in dismissal of the case and may impose further ineligibility extensions called bar.

Final Word - Filing bankruptcy may require a deep understanding of the dos and don'ts. It is highly advisable to hire an expert bankruptcy attorney who has proven expertise. Consulting with a lawyer may strengthen your case and likelihood of successful discharge. Most of the time you are not aware of exceptions and limitations and that's where a law firm or professional lawyer would come to play. They will guide you step by step to make your case much stronger.

If you are someone based in Los Angeles, Woodland Hills, or Encino, call Nader & Berneman today for an unbiased consultation.