Bankruptcy can provide a fresh start when medical bills, credit cards, personal loans and other debts become unmanageable. But a bankruptcy discharge doesn’t guarantee that someone will never experience financial trouble again. A job loss, illness, divorce or other unexpected event can leave someone struggling with debt years after a previous bankruptcy.
So, can you file for bankruptcy again? Generally, yes. There is no lifetime limit on the number of bankruptcy cases you can file. However, there are waiting periods that can affect when you are eligible to receive another discharge.
How long do you have to wait for another bankruptcy discharge?
The answer depends on which type of bankruptcy you filed previously and which chapter you want to use this time. For Chapter 7 and Chapter 13, the general waiting periods are:
- Chapter 7 after Chapter 7: Eight years
- Chapter 13 after Chapter 7: Four years
- Chapter 7 after Chapter 13: Six years
- Chapter 13 after Chapter 13: Two years
These periods are generally measured from the filing date of the earlier bankruptcy case to the filing date of the new case, rather than from the date the previous bankruptcy was discharged.
There are also exceptions. For example, the six-year waiting period for filing Chapter 7 after Chapter 13 may not apply if the debtor paid all unsecured claims in the earlier case or paid at least 70% of those claims under a plan proposed in good faith and representing the debtor’s best effort.
Filing another case isn’t always about getting a discharge
The rules can become more complicated if a previous bankruptcy was dismissed rather than successfully completed. Filing another case may also affect the automatic stay that normally stops collection actions, depending on the timing and circumstances of previous filings.
That’s why someone who has filed bankruptcy before shouldn’t assume that they’re either automatically eligible or automatically barred from filing again. The dates and outcome of the previous case matter, as does the type of bankruptcy being considered now.
If debt has become overwhelming again, an experienced bankruptcy attorney can review your previous case and help determine whether you qualify for another discharge or whether another debt relief option makes more sense.