Understanding How Often Can You File Bankruptcies
Bankruptcy can be a complex and overwhelming process, especially when it comes to understanding how often you can file for bankruptcy. Different types of bankruptcy have varying rules and waiting periods for filing again. This guide will help shed light on the frequency of filing for Chapter 7 and Chapter 13 bankruptcies, the most common types for individuals.
How Often Can You File for Chapter 7?
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling off certain assets to pay creditors. If you previously filed for Chapter 7 or Chapter 11 bankruptcy and wish to file a new Chapter 7 case, you must wait at least eight years from the date of the prior bankruptcy filing. However, the guidelines are more intricate if your previous case was Chapter 13:
- No waiting period for Chapter 7 if all creditors’ claims were paid in the previous Chapter 13 case.
- No waiting period for Chapter 7 if at least 70% of creditors’ claims were paid in the previous Chapter 13 case, and the repayment plan was a “good faith” proposal.
- Six-year waiting period for Chapter 7 after the previous Chapter 13 case if less than 70% of the claims were not paid.
How Often Can You File for Chapter 13?
In Chapter 13 bankruptcy, a debtor can repay some or all of their debts under a court-approved plan lasting three to five years. If your previous case was Chapter 7 and you’re seeking to file for Chapter 13, you typically must wait at least four years from the Chapter 7 filing. However, if your prior case was Chapter 13 and you want to file another Chapter 13 case, the waiting period typically drops to two years from the previous filing date.
How Many Times Can You File for Bankruptcy?
While there are waiting periods between filing Chapter 7 or Chapter 13 cases, there is no limit to how many times you can file for bankruptcy. However, filing multiple times can have long-term effects on your credit score. A Chapter 7 bankruptcy can stay on your credit report for up to 10 years, while a Chapter 13 bankruptcy can appear for seven years.
Double Filing (Chapter 20 Bankruptcy)
Double filing, informally known as Chapter 20 bankruptcy, involves filing a Chapter 13 case right after a Chapter 7 case concludes. This strategy may help in wiping out more debts over time and managing repayments effectively. However, there are pros and cons to consider before opting for Chapter 20 bankruptcy.
Strategy To Use in a Second Filing
If you’re contemplating a second bankruptcy filing, it’s crucial to plan the process effectively. Consider alternatives to bankruptcy, research the consequences, and determine the waiting period between filings. Consulting with an attorney can also provide valuable guidance.
Frequently Asked Questions (FAQs)
Can I file for bankruptcy more than once?
Yes, you can file for bankruptcy multiple times, but there may be restrictions and waiting periods between filings.
Is there a waiting period between bankruptcy cases?
Typically, there is a waiting period between bankruptcy cases, depending on the type of bankruptcy previously filed.
What are the most common types of bankruptcy for individuals?
The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13, each serving different purposes in debt relief.
How long does a bankruptcy stay on your credit report?
A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while a Chapter 13 bankruptcy may appear for up to seven years.
Can a bankruptcy attorney help me file bankruptcy sooner?
Bankruptcy attorneys can provide guidance on the filing process and help navigate any legal complexities, potentially expediting the filing process.