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How often can you declare bankruptcy?

On Behalf of | Oct 25, 2022 | bankruptcy |

Getting into serious debt or financial emergencies can happen more than once during your lifetime. And while you can always rebuild your credit and get back on your feet after bankruptcy, there are times when you might have to go bankrupt again.

If you are contemplating declaring bankruptcy for the second time, you might be wondering how many times you can do this.

So how frequently can you go bankrupt?

You can declare bankruptcy multiple times. However, there are limits to the frequency with which you can file. If you have recently used bankruptcy to discharge your debts, there is a waiting period before you can declare bankruptcy again. And this waiting period depends on the type of bankruptcy you declared before as well as the one you are hoping to file.

Time restrictions on Chapter 7 bankruptcy

Upon filing Chapter 7 bankruptcy, the court will decline any further applications filed within the next eight years.  This means that you will have to wait eight years from the date you filed the prior bankruptcy. Besides this time duration, your Chapter 7 will be denied if you filed Chapter 13 within the past six years and obtained a discharge. If your prior Chapter 13 was dismissed it does not count toward the time limits.

Time restrictions on Chapter 13 bankruptcy

Additionally, you cannot get a Chapter discharge if you filed for Chapter 7 within the past four years.  If you have previously filed Chapter 13, and obtained a discharge, you will have to wait for at least six years before you can file for Chapter 7 bankruptcy.

Bankruptcy can be a welcome relief when you are overwhelmed by debt. Knowing how different Chapters work can greatly improve your odds of filing a successful bankruptcy case. Contact any attorney to fully understand your options.