Personal bankruptcy can serve as a transformative solution for people facing major financial challenges. Instead of constantly trying to reduce debt one payment at a time, they can eliminate certain debts. Those who successfully complete the bankruptcy process can discharge their eligible debts. They can eliminate credit card balances, medical debt and certain other financial obligations.
For many people, bankruptcy is a fresh start that allows them to create a more sustainable household budget. Sadly, not everyone bounces back quickly after bankruptcy. The factors that pushed them into bankruptcy may still put pressure on their finances even after their discharge. There might be a hostile local job market or a medical issue preventing them from earning what they need to maintain their household.
Occasionally, those who have successfully filed for bankruptcy before realize that they need to file for bankruptcy again. Is it possible to file for bankruptcy more than once as an individual?
Repeat filings require a lengthy wait
It is possible for people to successfully file for bankruptcy more than once. In fact, there is no statutory limit on the number of bankruptcy filings and discharges for one person. However, the filer usually has to complete a mandatory waiting period before they become eligible for a subsequent filing.
The type of bankruptcy they initially filed and the type of bankruptcy they want to pursue this time both influence how long it takes for the filer to become eligible again. If the filer previously discharged debts via a Chapter 7 bankruptcy, they may need to wait eight years to file a second time under Chapter 7 rules. Those who want to file a Chapter 13 bankruptcy after a Chapter 7 discharge have to wait four years.
Filers who previously completed a Chapter 13 filing must wait two years after their discharge to file for Chapter 13 bankruptcy again. If they need to seek Chapter 7 relief instead, they have to wait six years after their Chapter 13 filing in most cases. In some cases, those pursuing Chapter 7 bankruptcy after a Chapter 13 bankruptcy can bypass the waiting period if they have paid a substantial portion of their remaining debts.
Learning about the rules that govern personal bankruptcy filings can help people plan the best path forward. Those dealing with unsustainable levels of debt may need the relief that bankruptcy can provide even if they have discharged some of their debts previously.
