Advocating For Consumers In Bankruptcy Filings For More Than 25 Years

Can you file for bankruptcy again?

On Behalf of | Feb 16, 2023 | Bankruptcy

People typically file for bankruptcy when debt becomes unmanageable. Bankruptcy is a process that allows people to relieve large amounts of debt. Medical debt, credit card debt, late payments, past-due utility bills and business debts are usually all covered under Chapter 7 and Chapter 13 bankruptcy. 

Even by carefully tracking their finances and keeping up with new debt, there can be unexpected events that cause people to fall behind on payments or accumulate more debt, such as unemployment, emergency purchases or unexpected medical problems. When this happens, people often wonder if they can file for bankruptcy again. 

The good news is that you can file for bankruptcy as many times as you need. There is one caveat, but to understand it, you may want to better understand how Chapter 7 and Chapter 13 bankruptcy work.

Liquidation bankruptcy plan

Chapter 7 bankruptcy is also called liquidation bankruptcy because assets are liquidated to pay off debts. Some assets are considered exempt, meaning that you won’t have to sell everything you own.

Waiting to re-file for bankruptcy

As stated above, you can file for bankruptcy as many times as you need, but you will have to wait several years since you last filed. 

If you previously filed a Chapter 7 bankruptcy and wish to file for Chapter 7 again, then you’ll have to wait eight years. If you instead want to file for Chapter 13 after a Chapter 7 bankruptcy, then you’ll have a four-year waiting period. After you file a Chapter 13 bankruptcy, you’ll have to wait six years before you file a Chapter 7 bankruptcy and two years to file another Chapter 13 bankruptcy.

You should be aware of your legal rights when filing for bankruptcy. If you’re filing too soon, then you could suffer from legal troubles. 

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