How Often Can I File for Bankruptcy?

Many individuals are under the common misconception that they must wait 10 years between bankruptcy filings to be eligible for discharge of debts. The truth is that the amount of time that you must wait between filings depends on the Chapter you last filed and what Chapter you will be filing this time. Chapter 13 bankruptcies are far more forgiving and you can file them far more often than Chapter 7. The actual time limits between bankruptcy filings are as follows:

Previous Chapter 7 Cases

If your previous bankruptcy was a Chapter 7, you must wait

8 years to file another Chapter 7
4 years to file a Chapter 13

Previous Chapter 13 Cases

If your previous bankruptcy was a Chapter 13, you must wait

2 years to file another Chapter 13
6 years to file a Chapter 7

The "Chapter 20" Bankruptcy and Second Mortgages

Please note, however, that the two-year requirement between a 13 and a 7 is not typically enforced. In fact, many bankruptcy attorneys call a Chapter 7, followed quickly by another Chapter 13, a Chapter 20 bankruptcy. The most common reason for a Chapter 20 is that the debtor has too much unsecured debt to file a Chapter 13 (which has debt limits) and files a Chapter 7 to discharge all of the unsecured debt, then files a Chapter 13 to strip off a second mortgage.

Economic Factors

Suppose a debtor recently filed a Chapter 7 six years ago but has remaining non-dischargeable student loans or taxes or has since incurred substantial credit card debt and is having to live on much less income do to the downturn in the economy. The debtor can file a Chapter 13 and be protected for the next 5 years without any worries of lawsuits, levies, or wage garnishments and be eligible to have a substantial portion of his unsecured debt (typically credit card or home equity debt) discharged.

Talk to a Bankruptcy Attorney About Your Options

If you have questions about seeking bankruptcy protection simply because they have filed for bankruptcy but have filed for bankruptcy previously, you should contact a bankruptcy professional to discuss your options. With some pre-bankruptcy planning and some creative filing techniques, a diligent bankruptcy attorney will probably find a way to get you the relief you need!

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