Can I file for bankruptcy again if my chapter 13 case is dismissed?

Answer:

Yes, you may file for bankruptcy again if your Chapter 13 case is dismissed, however, you may have to wait a certain number of days and file a Motion to Continue the Automatic Stay. Filing multiple cases, however, may be considered in bad faith.

Waiting Period

Depending on the circumstances, your case may have been dismissed with prejudice against re-filing for a certain number of days, usually 120. This is typically done if your case is dismissed for not adhering to the requirements of the bankruptcy code or the trustee’s requests. You may look at the dismissal that was filed with the court to see if it was done with or without prejudice.

Motion to Continue the Automatic Stay

While you may re-file a Chapter 13 bankruptcy after a dismissal, the automatic stay will not continue unless you file a motion to extend it. The automatic stay is the protection that goes into place when you file bankruptcy. It stops collection efforts from creditors, such as repossessions and foreclosures, as well as phone calls and collection letters. You need to file this motion to continue the bankruptcy protection.

Bad Faith

Filing multiple cases and not following through with them may be considered bad faith by the trustee. You may re-file a case that has been dismissed, but if you get to a third filing, there is an automatic assumption of bad faith. This means that you must prove to the court that you are not delaying the process and being prejudicial to creditors by filing multiple cases. If it is found that you have acted in bad faith, the case will be dismissed.

References:

Dismissing Chapter 13 Bankruptcy and Filing a New Case