When can I file bankruptcy again?
Q: how often can I file for bankruptcy protection?
A: there is technically no limit to how often someone can file a bankruptcy case, but to get another discharge there is a waiting period.
Bankruptcy offers protection to debtors in the form of an automatic stay of all debt collection activities that’s imposed when a case is filed. Most people file a bankruptcy case because they want their debts discharged so they no longer need to be paid, but the automatic stay is a tool in itself. It means that no one can call or write to you seeking to collect a debt, collect on any judgment, or pursue legal action such as foreclosure as long as that stay is in force. That itself can be life-changing, especially in the hands of an experienced bankruptcy attorney who knows how to use the automatic stay to best advantage.
That said, the main reason anyone considers bankruptcy is get debts wiped away with a discharge order. In a perfect world, that reset is all that’s needed to get one’s life back on track. Life can throw a few curve balls, though, and sometimes seeking another discharge later on also makes sense. To prevent this important protection from being abused, bankruptcy rules include waiting periods that must be observed before a judge can grant an additional discharge. (Judges are also empowered to limit someone’s ability to file in the future, or to limit or waive the automatic stay, if they think someone is taking advantage of the system.)
The discharge waiting period depends on the kind of case you filed the last time you got your debts discharged, and what chapter you want to file under this time around.
If you received a chapter 7 discharge and would like another, you must wait eight years to file again, counting from the original filing date.
If you completed your chapter 13 plan and got your remaining debts discharged, you might be able to file another chapter 13 case right away. That’s because the waiting period is just two years, and these plans take from three to five years to complete.
If you have a chapter 7 discharge and want to file for chapter 13 bankruptcy protection, you’ll have to wait four years between filing dates.
On the other hand if you received a chapter 13 discharge and wish to file a chapter 7 bankruptcy case, the waiting period is six years.
There are exceptions to some of these rules, and for some people it makes sense to file bankruptcy even without a discharge possible. This is why calling a bankruptcy attorney for a free consultation is a sound first step.