Future.

Nobody ever dreams of going bankrupt, but during hard times, filing for bankruptcy can provide a much-needed fresh start. But what if you’ve already filed for bankruptcy before? Can you do it again?

As it is, the law doesn’t prevent anyone from filing for bankruptcy multiple times. However, the Federal Bankruptcy Code does put in place safeguards to prevent and discourage frivolous filings. Essentially, you can file for bankruptcy as many times as you want, but you have to wait for the stipulated amount of time before subsequent filings.

What the Law Says

The Bankruptcy Code provides debtors with different options for bankruptcy filings, with each option having its own limitations. Here’s a general breakdown of the available options:

• Chapter 7: This chapter allows you to cancel most of your unsecured debts. If you file for bankruptcy under this option, you will have to wait eight years to file another debt discharge. Alternatively, you can file for a Chapter 13 discharge after four years.
• Chapter 13: A filing under this chapter allows you to create a repayment plan to repay all or part of your debts over a 3–5-year period. If you start with this option, you will have to wait for six years to file a chapter 7 or two years to file for another chapter 13. Nonetheless, the waiting time can be reduced depending on how well you pay your debts. For instance, if you pay all your unsecured debts fully, the waiting period may be waived. If you pay 70% of the debt, the waiting period may be reduced from six years to four years.

Exceptions to the Rule

Like any law, the Bankruptcy Code allows for some exceptions and considerations where the waiting period between bankruptcy filings can be reduced or waived altogether. For instance, if you experience an unforeseen financial hardship after your last filing, a judge may allow for repeat filings sooner than stipulated.

Speak to an Attorney Today!

Don’t navigate the complexities of repeat bankruptcy filings on your own. Contact O’Brien Law Firm in Southaven, MS, today and let us help you explore your options and kickstart your journey to a debt-free future.