Can I File Bankruptcy More Than Once?
Many people who face financial difficulties wonder if bankruptcy is a one-time option or something that can be filed more than once. The truth is that bankruptcy law does allow individuals to file more than once, but there are important rules, timelines, and consequences that must be understood before making this decision.
Filing Bankruptcy More Than Once
Bankruptcy is intended to give debtors a financial fresh start. However, life circumstances—such as job loss, medical bills, or unexpected expenses—may cause someone to face overwhelming debt again. If this happens, filing another bankruptcy may be possible, depending on the type of bankruptcy previously filed and the time that has passed since discharge.
Time Limits Between Filings
The type of bankruptcy filed in the past determines how long a person must wait before filing again and receiving a discharge:
- Chapter 7 to Chapter 7: You must wait eight years from the date of the first filing.
- Chapter 7 to Chapter 13: You must wait four years from the date of the Chapter 7 filing.
- Chapter 13 to Chapter 13: You must wait two years from the date of the first filing.
- Chapter 13 to Chapter 7: You must wait six years, unless you paid back at least 70% of your unsecured debts under your Chapter 13 plan.
These rules apply when you want to receive another discharge. You may technically file before the waiting period ends, but you may not qualify for a discharge until the timeline is met.
Strategic Considerations
Even if you can file, it’s important to consider whether it’s the right step. Filing too often may affect your credit and limit options for debt management in the future. In some cases, a Chapter 13 filing after a Chapter 7 (sometimes called a “Chapter 20”) may help address debts that were not discharged previously, such as mortgage arrears.
Seeking Guidance Before Filing Again
Filing bankruptcy more than once is possible, but it requires careful planning and an understanding of how the rules apply to your situation. A knowledgeable bankruptcy attorney can help you review your financial circumstances and determine the best path forward.
At Shuster Law, PLLC, we can provide legal assistance to the Texas public. If you are considering filing bankruptcy again, we can help you understand your options and create a strategy that works for your needs.
