Many people who file for bankruptcy only do so once, but there are those who may want to use the process multiple times. You could find yourself wondering how often you are allowed to file or how long you need to wait after a previous filing.
The truth is that it depends on the type of bankruptcy that you are filing for. If you are using a wage earner’s plan, which is known as Chapter 13 bankruptcy, or a liquidation bankruptcy, known as Chapter 7, the rules apply a bit differently.
If you originally filed for Chapter 7
For example, say that you filed for Chapter 7 bankruptcy, which means you need to liquidate nonexempt assets and pay off creditors. If you would like to file Chapter 7 again, you have to wait eight years to do so. But if you would like to file for Chapter 13 bankruptcy the second time, then you only need to wait four years.
If you originally filed for Chapter 13
On the other hand, you may have filed for Chapter 13, meaning your debt was consolidated into a repayment plan. If you would like to file for Chapter 13 again, then you have to wait just two years after your bankruptcy has been discharged. If you would like to file for Chapter 7, however, it can take up to six years, depending on your repayment plan.
Exploring your bankruptcy options
As you can see, it is possible to use bankruptcy repeatedly, but you need to know exactly how the schedule works if you would like to do so. Take the time to look into all of your legal options carefully while you consider your options.