Bankruptcy can provide emergency relief from extreme financial pressure. People who file for bankruptcy can halt collection activity when they receive an automatic stay. They can discharge some of their debts, making it easier for them to balance their budgets.
Not everyone who files for bankruptcy has a clear path to financial stability. Tumultuous job markets, medical challenges and other issues may lead to people struggling financially even after a successful bankruptcy case.
Can a person who has successfully filed for personal bankruptcy before file for bankruptcy a second time?
There is no limit on lifetime filings
Neither state nor federal laws limit the number of bankruptcies that a person can file. Instead, what matters is whether they wait an appropriate amount of time before filing again. The type of bankruptcy they filed previously and the type they intend to pursue with their more recent case both influence how long they must wait.
If the filer previously pursued a Chapter 7 bankruptcy, they have to wait eight years before they can file for Chapter 7 bankruptcy again. Those hoping to file for Chapter 13 bankruptcy after a Chapter 7 filing only have to wait four years.
If the previous case was a Chapter 13 bankruptcy and the filer wants to pursue Chapter 13 proceedings again, they typically only have to wait two years to be eligible. If they hope to pursue Chapter 7 bankruptcy after a Chapter 13 bankruptcy, they may need to wait up to six years, depending on their circumstances.
Even those who have successfully filed for bankruptcy before may need help if they intend to file again, and that’s okay. Understanding the timing restrictions on personal bankruptcy can help people choose the best solutions for their current financial challenges.