Bankruptcy provides financial relief for people who accrue excessive debt or who have a sudden drop in income. Successful personal bankruptcy filings can eliminate certain debts through the discharge granted by the courts.
For many people, a single bankruptcy filing is enough to improve their circumstances and help them regain control over their finances. For others, high cost-of-living expenses or continued income restraints may result in additional debt accruing after a bankruptcy. Can someone who previously received a discharge file for bankruptcy again?
There are no limits on repeat personal bankruptcy filings
People can file for bankruptcy as many times as necessary to secure financial relief, provided that they wait an appropriate amount of time between filings. The type of bankruptcy previously filed and the type of bankruptcy pursued for the subsequent filing both influence how long people must wait between one bankruptcy and the next.
For those who filed Chapter 7 bankruptcy previously, waiting eight years is necessary before filing for Chapter 7 bankruptcy again. If they choose to pursue Chapter 13 bankruptcy after a Chapter 7 bankruptcy, the waiting period is four years. For those with a prior Chapter 13 case, the waiting period for another Chapter 13 filing is two years, while the waiting period for a subsequent Chapter 7 filing is six years.
Discussing the prior bankruptcy case and current financial concerns with a bankruptcy attorney can help people understand their options. For those who continue to have medical challenges or issues with their income, second or even third personal bankruptcy filings are sometimes necessary.