How Often Can I File Bankruptcy

How Many Times Can You File For Bankruptcy

Although theres often a wait time to file another Chapter 7 or Chapter 13 bankruptcy case, theres no limit to how many times you can file.

But while you can file for bankruptcy more than once, keep in mind that doing so could prolong the damage to your credit. A Chapter 7 bankruptcy can stay on your credit report for 10 years from the time the case was filed, and a Chapter 13 bankruptcy can appear on your credit report for seven years after the case was filed.

What Happens To Your Bank Account

When the bankruptcy order is made, you must:

• make sure you dont use your bank account
• give your cards and cheque books to the trustee

Your bank account will be frozen. Any money in your account will be an asset and claimed by the trustee. The trustee can ask to release some money:

• for your daily living needs
• to the other person in a joint account

The bank is allowed to use money from one of your accounts to pay your debts on another account you hold with them. This is called set off.

Otherwise, money owed to the bank is a bankruptcy debt, so you cant pay this to the bank directly. The exception is if the bank has a charge on your home .

Open a new account

You can open a new bank account after the date of the bankruptcy order but you must tell the bank or building society that youre bankrupt. Some banks will let you use your old account after theyve spoken to the trustee.

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How Often Can I File For Bankruptcy

Oct 7, 2021Bankruptcy

If you filed for bankruptcy relief in the past and received a discharge, you may be wondering if you can file bankruptcy again. Is there a limit to how many bankruptcies one person can file? If you can file multiple times, are there time restraints?

Generally, debtors are not limited to the number of bankruptcies they can file. However, if someones debts were effectively discharged in a previous bankruptcy, they cannot file a subsequent bankruptcy whenever they want. Instead, they are required to wait a certain period of time before they can file bankruptcy again.

Has enough time elapsed so you can file bankruptcy again? The answer depends on: 1) the type of bankruptcy you filed previously, 2) the type of bankruptcy you want to file now, 3) if your previous bankruptcy was discharged or dismissed, and 4) the date that you filed your last bankruptcy case.

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How Often Can You File For Bankruptcy In Ohio

People suffering under too much debt often choose to file for bankruptcy to get a fresh start. But what happens if you suffer additional setbacks, acquire more debt, and need additional help?

Can you file for bankruptcy more than once in Ohio?

If you have questions about bankruptcy and how often you can file, contact the experienced Cleveland bankruptcy attorneys at Luftman, Heck & Associates. We will work with you to determine your best options.

Call us today at for a free consultation.

How Long Do You Have To Wait Between Bankruptcies In A Nutshell

If Discharge Received In Prior Bankruptcy

• Previous Chapter 7 New Chapter 7 = 8 years

• Previous Chapter 7 New Chapter 13 = 4 years

• Previous Chapter 13 New Chapter 7 = 6 years

• Previous Chapter 13 New Chapter 13 = 2 years

If No Discharge Received In Prior Bankruptcy

• Can Refile Successive Chapter 13s

• But This Could Result In Negative Consequences

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Cost Of Debt Calculator

It makes sense to think that the cost of debt is simply the amount of debt that you owe, right? But this is most often not the case. Unless you paid extra close attention and were extremely diligent, its likely that your debt or loan involves interest collected over time. Until you calculate what that interest will amount to by the time you finish paying off your debt, you wont know what your debt is really costing you. Use this Cost of Debt Calculator to determine exactly how much youll be paying over time.

Can I File For Bankruptcy More Than Once In Ohio

So, how many times are you allowed to file bankruptcy? Technically, there is no law against filing multiple bankruptcies. However, there are laws that limit how often you can have your debts discharged through bankruptcy, and there may not be much to gain by filing for bankruptcy if you cant discharge any of your debts. How often you can have your debts discharged depends on which chapter of the Bankruptcy Code you most recently used and which chapter you wish to use for your latest claim.

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From Chapter 13 To Chapter 7 Bankruptcy

If you received a discharge in a previous Chapter 13 bankruptcy, you must wait six years from the date the Chapter 13 was filed before you can file a Chapter 7 bankruptcy and receive a discharge. However, there are two little-known exceptions to this general rule. If you paid back 100% of your unsecured creditors you can immediately file a Chapter 7 bankruptcy. In addition, you can file a Chapter 7 bankruptcy immediately after Chapter 13 bankruptcy discharge in certain cases. If you paid back 70% of your unsecured debts, your plan was proposed in good faith and you used your best effort to pay your debt.

Can I File Again

However, many people assume that if the bankruptcy is still listed, they cant file again. The confusion can lead to questions like this:

Question: Ive been working with a debt settlement company since May 2017. They have settled six of my accounts with three more to go.

I chose not to do bankruptcy because it was still showing on my credit report, although it was discharged in 2006. And I didnt know if I can file again.

How I got to this point was through unfortunate circumstances and bad habits. Ive been living paycheck to paycheck, so I used payday loans anytime I had an emergency. Then I got a car title loan just to pay other loans. Now Im stuck with a foolish car title loan until October 2020.

The debt settlement has given me some relief. But I still have quite a bit to go, and I find myself being in the red each month. I have a budget for each pay period, but I still end up using overdraft funds almost every month.

Sometimes, Im over by a $100 and sometimes by $300. It depends on what has happened unexpectedly in that pay period. Those additional fees of $28 each can add up. Ive cut back all that I can and just pay my bills. I do get an extra $200 a month for keeping my grandchild on weeknight and weekends.

What can I do more to help with my financial difficulties?

Jo in California

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Consider The Pros Of Double Filing

Getting a Chapter 7 discharge and immediately filing for Chapter 13 will give you more time to pay back debts that cannot be discharged, such as child support or spousal support.

Similarly, if you just need more time to pay off your debt, you can consider filing for a second Chapter 13 early. This will not discharge any debt but adds another five years to your bankruptcy payment plan. This will buy you more time instead of having automatic wage garnishment applied to your paychecks.

If you did not receive a discharge during the first filing, you might get one in the second bankruptcy.

If you are considering double filing, you need to work with a bankruptcy lawyer to get it right. There are many nuances that could lead a court to declare that you have filed again in bad faith.

How Often Can You File For Chapter 13

In Chapter 13, often called a wage earners plan, a debtor can pay some or all of their debts under a court-approved plan lasting three to five years.

If your previous bankruptcy case was Chapter 7 and youre seeking to file for Chapter 13 bankruptcy, you typically must wait at least four years after the Chapter 7 bankruptcy was filed. But if your previous bankruptcy case was Chapter 13 and you want to file another Chapter 13 case, the waiting period typically drops to two years from when the previous bankruptcy case was filed.

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What Is Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a way to reorganize your debt. It involves repaying none, some or all of your debt over the course of three to five years. One important difference between Chapter 13 and Chapter 7 bankruptcy is that in Chapter 13, your debts arent discharged and youre still liable to pay them.

With Chapter 13, most or all of your creditors are lumped together into one large pool. You then make payments each month to a lawyer called a trustee whos assigned to your case. The trustee distributes your payment to the creditors.

In Chapter 13, you can reduce the amount owed on secured loans, reduce interest rates, re-amortize loans for a lower monthly payment, remove certain liens, extend the time to pay back taxes, reduce the amount owed on unsecured loans sometimes down to zero and legally break leases, says bankruptcy attorney Dai Rosenblum of Butler, Pa. Because a Chapter 13 filing can extend up to five years, Rosenblum says many people use it to catch up on their mortgage.

When you proceed with a Chapter 13 case, you must file a plan detailing how some, or all, of the debts will be repaid over time. In addition, you or your attorney, in conjunction with the trustee for your case, will determine a reasonable amount that you can afford to pay back to creditors. That amount is based on your assets, monthly income and monthly expenses.

You Did Not Receive A Discharge In Your First Chapter 7 Bankruptcy

If you filed a Chapter 7 Bankruptcy Petition and did not receive a discharge or your case was dismissed, you can typically file another Chapter 7 petition at any time as long as your first case was not dismissed for reasons of abuse or there is an order barring you from refiling a new case.

A Chapter 7 case may not receive a discharge if there are issues that prevent you from completing all the required steps necessary in your case. For example, you may not receive a discharge if:

• you are sick and do not attend the meeting of creditors or get excused from attending the meeting of creditors
• you are unable to get in contact with your lawyer
• you fail to complete the credit counseling prior to filing
• you fail to complete the financial management course
• You fail to meet any other filing requirement or requirement of the Court or the Chapter 7 Trustee.

If your first case was dismissed and you attempted to comply with what you were supposed to do, then you should be able to file a Chapter 7 Bankruptcy case again. In some cases, The Bankruptcy Court may issue a Court Order which prevents you from filing a new case for a period of six months for example, before you are permitted to file for relief again.

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Should I Hire A Bankruptcy Attorney If I Want To File For Bankruptcy More Than Once

While hiring an attorney adds another expense for people who are already strapped financially, it is usually well worth the money to hire a bankruptcy lawyer. An attorney will make sure everything is filled out and filed correctly, and can guide you throughout the entire bankruptcy process.

• No fee to present your case
• Choose from lawyers in your area
• A 100% confidential service

Figuring Out How Many Times You Can File Bankruptcy And Get A Discharge

You’ll qualify for another bankruptcy discharge if you meet the waiting period rules. But the amount of time you must wait will change depending on the bankruptcy chapter you filed previously and the chapter you’d like to file. For instance, you’ll always wait longer to file Chapter 7 than Chapter 13, regardless of the chapter filed previously.

The easiest way to understand the timing rules is with a chart, so you’ll find one immediately after the bankruptcy waiting period explanation, which is next.

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When Filing For Bankruptcy Without A Discharge Might Be Beneficial

Sometimes you don’t need a discharge because filing for bankruptcy solves another problem. For instance, businesses are never entitled to a Chapter 7 discharge, yet closing companies sometimes file for Chapter 7.

Here’s why.

It’s tempting for a company’s interest holders to hide assets instead of using them to pay creditors as they’re supposed to when winding down a business. Because liquidating assets transparently can help minimize wrongful conduct accusations from creditors, having a court-appointed trustee sell business assets and distribute funds to creditors can be helpful.

Although it isn’t used much, the same approach is available to individual filers, and it’s one of the ways to benefit from bankruptcy without receiving a discharge.

More often, individuals who aren’t entitled to a discharge turn to Chapter 13 to force a creditor into a repayment plan. For instance, suppose you have a creditor threatening to take your home or file a wage garnishment. If you didn’t have the cash to pay the entire debt but could make smaller payments, what you’d need is time, not a discharge. Filing Chapter 13 would be a viable solution.

A “Chapter 20” bankruptcy is similar and starts when a filer discharges all qualifying debts in Chapter 7. Immediately afterward, the debtor uses a Chapter 13 bankruptcy payment plan to pay nondischargeable debts that weren’t erased in Chapter 7.

Different Types Of Bankruptcy Explained

A Chapter 7 bankruptcy eliminates most debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts. A Chapter 13 bankruptcy allows you to keep all of your property as long as the monthly repayment plan pays for the value of your assets. The debts that donât get paid as part of the repayment plan are discharged once the plan has been completed. The discharge of your debts gives you the fresh start you need.

The Chapter 11 bankruptcy process provides similar relief to that provided in Chapter 7 and Chapter 13, but is generally reserved for filers with businesses or significant assets and is a lot more expensive than even a Chapter 13 bankruptcy. This article will focus specifically on Chapter 7 and Chapter 13 bankruptcy.

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What To Do If You Think Time Limitations May Apply In Your Case

If you have filed bankruptcy before and feel you may need to file again, you should consult a bankruptcy attorney who can walk you through your options and help you determine your best course of action.

Most attorneys will provide a free initial consultation, said Yesner. However, you should make sure that the bankruptcy attorney you speak with also provides other non-bankruptcy solutions to prevent being forced to file when that solution may not be best or most appropriate for your finances.

Before you meet with an attorney, it can help to gather some information on your previous bankruptcy. Create a file of paperwork of earlier bankruptcies that includes information on dates and debts discharged. Also, ask yourself about your goals. Do you want to eliminate debt? Save your home? Stop creditors from calling?

If you find you cant file for bankruptcy again for several years, dont despair. Fleischman said there might be other options to consider that could leave you better off. Depending on your reason for considering bankruptcy in the first place, those alternatives may include:

• Dealing with creditors directly
• Engaging in administrative remedies such as income-driven repayment on federal student loans and offer in compromise for tax debts

How Often Can You File Bankruptcy In Alabama

Unless a bankruptcy court orders otherwise, there are no limits on the number of bankruptcy cases you can file in Alabama. If your debts were discharged in a previous bankruptcy, you must wait a certain amount of time in Alabama before you will be entitled to a discharge again. If you can file another bankruptcy and receive a discharge depends on:

• the chapter of bankruptcy you filed previously and want to file now
• whether your previous bankruptcy was discharged, dismissed, or dismissed with prejudice, and
• the date you filed the previous case.

If you have filed before and received a discharge then the bankruptcy code specifies when you can file bankruptcy again and obtain a discharge. Understanding all your bankruptcy options will give peace of mind when approaching this challenging time in your life. If you did not get a discharge in your previous bankruptcy case then you can file for bankruptcy again without the below time limits. You can file twice or even three times, even if you have received a discharge. The key is that you will often have to wait a certain period after you have filed and have received a discharge, to file for bankruptcy again and get a full discharge. If you file for bankruptcy again prior the time limits then you will not get a full discharge.

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