How Often Can One File For Bankruptcy?

The frequency with which someone can file for Chapter 7 bankruptcy and receive a discharge is governed by specific time limits set forth in the U.S. Bankruptcy Code. According to these rules, you must wait a certain number of years from the date of your previous bankruptcy filing before you are eligible to file again and receive a discharge. Here are the key time limits for filing Chapter 7 bankruptcy after a previous bankruptcy filing:

Chapter 7 After Chapter 7

If you previously received a discharge in a Chapter 7 bankruptcy case, you must wait 8 years from the date you filed the previous Chapter 7 case before you can file another Chapter 7 case and receive a discharge. This time limit is outlined in 11 U.S.C. § 727(a)(8).

Chapter 7 After Chapter 13

If you previously received a discharge in a Chapter 13 bankruptcy case, you must wait 6 years from the date you filed the Chapter 13 case before you can file for Chapter 7 bankruptcy and receive a discharge, as per 11 U.S.C. § 727(a)(9). However, there are exceptions to this rule:

• If you paid all unsecured creditors in full in the Chapter 13 case, or
• If you paid at least 70% of the claims in the Chapter 13 case and the plan was proposed in good faith and was your best effort, you may not have to wait the full 6 years.

Other Considerations

• Filing Without Discharge: It’s technically possible to file for Chapter 7 bankruptcy even if you’re not eligible for a discharge because you’re within the waiting period. However, since receiving a discharge is usually the primary goal of filing for bankruptcy, filing without the possibility of discharge is generally not advisable.
• Chapter 13 Filing After Chapter 7: Different rules apply if you’re filing for Chapter 13 bankruptcy after a Chapter 7 discharge. In this case, you must wait 4 years from the date you filed the Chapter 7 case to be eligible for a Chapter 13 discharge.
• Dismissed Cases: If your previous bankruptcy case was dismissed rather than discharged, different rules might apply. Generally, there’s no waiting period to refile after a dismissal, but if the court orders otherwise or if the dismissal was due to certain reasons like failure to obey court orders, there may be a waiting period.

The time limits for filing Chapter 7 bankruptcy after a previous bankruptcy aim to prevent abuse of the bankruptcy system while still providing individuals with the opportunity for a fresh start when they face financial difficulties. If you’re considering filing for bankruptcy again and are unsure about the timing or your eligibility for discharge, consulting with a bankruptcy attorney can provide clarity and guidance based on your specific circumstances.

 

Bankruptcy