Answering Questions About Repeat Bankruptcies

Millions of individuals and companies have filed for bankruptcy protection. Although it carries a social stigma, filing for bankruptcy is a perfectly legitimate option for individuals who simply are not capable of paying off their debts while supporting themselves or their families. After receiving a bankruptcy discharge, most people make every effort to stabilize their finances. However, it’s not uncommon for individuals to need to file a second or even a third bankruptcy petition.

Can I File Chapter 7 After Previously Filing Chapter 7?

Yes. However, you must wait eight years after the date of your previous bankruptcy discharge before you can file another Chapter 7 bankruptcy petition.

Can I File Chapter 13 After Previously Filing Chapter 13?

Chapter 13 bankruptcy involves a repayment period of three to five years. The time period you must wait between filing two Chapter 13 bankruptcy petitions is two years. This means that most people are eligible to file Chapter 13 again after the repayment period expires.

Is It Possible to File a Different Type of Bankruptcy?

If you previously filed Chapter 7, but now wish to file Chapter 13, you may file the Chapter 13 petition after four years have passed since your Chapter 7 discharge. If you previously filed Chapter 13, but now want to file Chapter 7, you will be required to wait at least six years. However, there are a couple of exceptions to this rule. You may file Chapter 7 earlier if, in your Chapter 13 case, you repaid all of your unsecured debts or if you repaid at least 70 percent of the unsecured debts, but demonstrated a good faith effort to pay back the total debt.

What Happens If My Case Was Dismissed with Prejudice?

A bankruptcy case may be dismissed with prejudice if you are believed to have abused the bankruptcy system. If a previous bankruptcy case was dismissed with prejudice, the court may bar you from filing again for a certain period of time.

At Cutler & Associates, Ltd., our bankruptcy law firm guides clients through Chapter 7 and Chapter 13 bankruptcy cases.