When a person is unable to pay back their outstanding debts, they can file for bankruptcy. There are two different types of bankruptcy- personal and business bankruptcy, but they are generally viewed as a means to getting a fresh financial start. People usually file for either a Chapter 7 or Chapter 13 bankruptcy when filing for a discharge. A Chapter 7 bankruptcy is for people who don’t have the means to pay back their debts while a Chapter 13 is for those who require a payment plan to be able to pay back their debts. You might be wondering if you can file for personal bankruptcy multiple times, and in this article, we will discuss this in detail.
Time limits attached to filing for bankruptcy
There is no minimum period that you must wait for before filing for bankruptcy again. But if you file for bankruptcy too soon after your debt from a previous discharge case was wiped, you will not be eligible for debt forgiveness again. The key to filing for multiple personal bankruptcies is timing – this means that you need to pick the best times, which we would discuss below.
Filing multiple bankruptcies under the same chapter
If you want to file for successive Chapter 7 discharges, you will have to wait eight years after you filed the first one before you can file for the second one. For Successive Chapter 13 bankruptcies, on the other hand, two years have to pass from the filing dates of your Chapter 13 bankruptcy before you can be eligible to receive another one.
The order you file for bankruptcy matters
You have to wait for a period of time if you are filing for a second bankruptcy under a different chapter from your first one, and they differ with the order they come in. If you got your first discharge under Chapter 13 bankruptcy, you would have to wait for about six years before you can file for a Chapter 7 discharge. However, if in your Chapter 13 case you paid unsecured creditors fully, you will not have to wait that long to file for Chapter 7 bankruptcy. On the other hand, if you were granted a discharge under Chapter 7 bankruptcy, you’ll have to wait for four years from the filing before you can file for Chapter 13 relief.
You can make a second filing without a discharge from the first filing
You can file for a Chapter 13 case immediately after you receive your Chapter 7 discharge, but a solid reason has to be given to enable it to be granted to you. It is very tricky to qualify for this, but consulting with a bankruptcy lawyer is the best step to take before attempting this route. You can also file again if you didn’t receive a discharge in your first case, and it is possible to receive it the second time. There are different reasons why people don’t get their debt discharged, so you have to take note of this as well.
If you or a loved one are drowning in debt and need relief now, you need the assistance of a licensed, skilled attorney. For over a decade, the attorneys at Dsouza and Strachan Law Group have been helping the people of South Florida get back on track. Contact Dsouza and Strachan today for a free consultation.