How Often Can You File Chapter 7 Bankruptcy?

The ability to file for Chapter 7 bankruptcy multiple times is subject to specific time limits set by bankruptcy law to prevent abuse of the bankruptcy system. Here’s a breakdown of the rules regarding the frequency of Chapter 7 filings:

Time Limits for Chapter 7 Filings:

• Chapter 7 to Chapter 7: If you have previously received a discharge in a Chapter 7 bankruptcy case, you must wait eight years from the date you filed the previous case before you can file another Chapter 7 bankruptcy and receive a discharge. This eight-year waiting period is calculated from the filing date of the first Chapter 7 case to the filing date of the subsequent Chapter 7 case.

Other Bankruptcy Filing Intervals:

• Chapter 7 to Chapter 13: If you received a discharge under Chapter 7, you must wait four years from the filing date of the Chapter 7 case before you can file for Chapter 13 bankruptcy and receive a discharge. This is often referred to as a “Chapter 20” bankruptcy, where you file for Chapter 13 after Chapter 7, which can be beneficial for dealing with debts that are not dischargeable in Chapter 7 or for catching up on missed mortgage or car loan payments.
• Chapter 13 to Chapter 7: If you previously filed for Chapter 13 and received a discharge, you need to wait six years from the filing date of the Chapter 13 case to file for Chapter 7 and receive a discharge, unless you paid back all your unsecured debts or paid at least 70% of the claims and the plan was proposed in good faith and was your best effort.

Considerations and Exceptions:

• No Discharge Cases: If you did not receive a discharge in your previous bankruptcy case, these time limits might not apply. However, the specifics can be complex, so it’s essential to consult with a bankruptcy attorney to understand your eligibility.
• Strategic Filing: Sometimes, individuals might file for bankruptcy even if they are not eligible for a discharge, simply to benefit from the automatic stay and gain time to reorganize their finances. However, this strategy should be approached with caution and legal advice.

While you can file for Chapter 7 bankruptcy multiple times, there are specific time restrictions designed to prevent frequent use of bankruptcy to eliminate debts. Understanding these rules and planning accordingly is crucial for leveraging bankruptcy effectively as a tool for financial fresh starts. If you’re considering re-filing for bankruptcy, consulting with a bankruptcy attorney is essential to navigate the rules and develop a strategic approach to your financial recovery.

Chapter 7 bankruptcy