Filing Bankruptcy a Second Time – Helpful Tips & Advice

In this article, we’ll discuss the important topic of: “Filing Bankruptcy a Second Time”

Every individual today has some financial burden to maintain a proper lifestyle. But it becomes intolerable when you get drowned in debts. When you are overburdened with debts and do not have an option to pay them off, filing bankruptcy becomes the ultimate option. 

Though most people learn to manage their finances after first bankruptcy, others still may get stuck in another similar situation. Such people might question whether they can go for filing bankruptcy a second time or not. 

Usually, you can file bankruptcy as many times as required. But there are specific parameters that you need to follow in doing so. 

Filing Bankruptcy a Second Time – Helpful Tips & Advice

You can file bankruptcy even more than two times. But whether your case will be supported or will be dismissed depends upon many factors. 

  • What chapter did you file previously?
  • After how much time are you filing bankruptcy again?
  • Under what chapter are you filing bankruptcy this time?
  • Are you filing for debt discharge or for gaining time to repay?

Your case can be dismissed on supported in the bankruptcy court on your second filing based on these factors. There are several strict laws that you need to follow, such as:

  • You can file Chapter 7 for the second time, too, but you have to wait for at least eight years. 
  • In the case of Chapter 13 for the second time, it is just two years waiting time. 
  • Similarly, if you have filed Chapter 13 earlier and then you are filing Chapter 7, you have to wait for six years. 
  • Again, on the vice versa, that is, if you have filed Chapter 7 before and then are filing Chapter 13, you have to wait for four years. 

It is always a better idea to talk to your advocate about all these complications. Also, here is the right procedure that you can follow. 

  • Bankruptcy Evaluation:

If you have already filed bankruptcy previously, filing bankruptcy a second time should not be that much confusion. It would support if you did a few of the analyses for the filing purpose. Some of the facts that you need to analyze are mentioned here.

  • Do you have dischargeable debt or not.
  • The property that you have to compromise for the solution.
  • Which bankruptcy filing is best suited for you, i.e., Chapter 13 or Chapter 7? 

It is only after doing such an analysis that you can move ahead for the next procedure. 

  • Back to Back Filings:

Do you intend to pay the debt amount at all, or are you filing bankruptcy to get protection from the creditors? If planning to get protection from the creditors, you are filing back to back cases, and you can be in trouble soon. The court will realize that you are filing several issues, and soon, it will dismiss your case. Thus, you should talk to your attorney carefully, analyzing the time that you need to pay back the debts. It would help if you also asked questions such as how many times can you file chapter 13 and how often you can file. You should file bankruptcy accordingly. 

  • Debt Discharge:

If you are filing bankruptcy a second time for debt discharge, there are specific guidelines that you should know. You can file the case after a certain period after your first case depending upon several factors such as:

  • The Bankruptcy type that you filed earlier and that you wish to file now
  • The date of the last bankruptcy file
  • Whether the last time the debt was discharged or your case was dismissed

Based on these factors, you can file for debt discharge twice or more.

  • Without Debt Discharge:

Not many people file for debt discharge. Many people file bankruptcy to get some extra time to make the payment. In such a case, you can file the second case much before the period mentioned in the rule. 

How Many Whiles Can You File Chapter 13?

You can file Chapter 13 bankruptcy endless times. But there is a criterion that you need to follow. Here are some of the essential facts that you should follow to file bankruptcy under Chapter 13. 

  • You are not eligible to file liquidation under Chapter 13 if you have a secured debt that is more than $1,184,200 and an unsecured debt that is more than $394 725. 
  • For filing bankruptcy under Chapter 13 for the second time, you have to wait for at least two years.
  • If your previous bankruptcy was under Chapter 7, you need to wait for the next four years to file Chapter 13. 

If you have filed for insolvency under Chapter 7 and now your question is Can I file chapter 7 before eight years? You will get a negative answer. In such a case, you can wait for four years and can file Chapter 13 if it suits you. 

Summary

Filing bankruptcy can be a complicated task. Further, you are filing bankruptcy a second time; it can get even more complicated. You need to follow several rules and guidelines if you do not want your case to get dismissed by the court. 

In such a situation, many people have several questions such as can I file chapter 7 before 8 years. Getting in touch with the right bankruptcy attorney can help you get answers to these tricky questions while solving your problem. 

Discolsure: I am not a financial expert and it is highly recommended that you seek out a professional before making any financial decisions. Articles are informational and for educational purposes only.

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