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When Can You File A Second Bankruptcy

Chapter 13 To Chapter 7 Time Limit

How long before I can file bankruptcy again?

The standard wait is six years, but its not chiseled in stone.

The waiting period is often waived if you repaid all your debts under Chapter 13 provision, or you repaid at least 70% of them and showed a good-faith effort to pay them all.

If you meet those requirements, you could file for Chapter 7 within a year of the Chapter 13 discharge.

How Often Can You File For Bankruptcy

The frequency of applying for bankruptcy depends on which type of bankruptcy youre filing, something known as the 2-4-6-8 rule. Heres a breakdown:

  • Filing Chapter 13 after Chapter 13: two years.
  • Filing Chapter 13 after Chapter 7: four years.
  • Filing Chapter 7 after Chapter 13: six years.
  • Filing Chapter 7 after Chapter 7: eight years.

Filing Chapter 13 immediately after Chapter 7 is also referred to as Chapter 20 bankruptcy. You wont receive a discharge when filing Chapter 20, since you arent waiting the full four years between Chapter 7 and Chapter 13, but this type of filing could give you the time you need to pay down debt.

Can I File For Bankruptcy For A Second Time

Posted by Bruce White | May 04, 2017 | 0 Comments

Bankruptcy has helped countless numbers of people restore their life and work their way back to financial independence. However, sometimes things don’t always work out. Despite a discharge of debts, some people’s situation may once again decline, placing them back in debt and forcing them to consider filing for a second time. Can you file bankruptcy twice, and if so, how long do you have to wait? Let’s look at the answer to these important questions.

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Reasons To Switch Your Bankruptcy Filing From The Previous Chapter

The type of bankruptcy you file will change your repayment plan, the amount of unsecured debts you owe, and the amount of time the bankruptcy stays on your record. It may make sense to file for a different bankruptcy than you used in your previous case.

A bankruptcy attorney can help you understand the best debt relief options for you. An attorney can’t change the time limits between filing dates, but they can help you decide if switching your Chapter is a smart idea. They can also help you prepare to file as soon as the date is available to you.

You can apply one of these strategies to your second bankruptcy filing:

  • Switching from Chapter 7 to Chapter 13: If you pay off unsecured debts during Chapter 7, you can file a Chapter 13 to create a repayment plan to pay off tax debt or other debts that were not discharged during the Chapter 7 filing.
  • Switching from Chapter 13 to Chapter 7: If you pay back 100% of unsecured debt to creditors, the six-year waiting period can be waived. In some cases, you only need to pay back 70% of unsecured debt. The first bankruptcy case needs to be in good faith in order to file for Chapter 7.
  • Repeating Chapter 13 bankruptcy filing: Some people may repeat Chapter 13 filing to manage student loans or tax debts repayment. These debts cannot be discharged, so they must eventually be paid in full.

Should You File For Bankruptcy

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You should know that if you do file for bankruptcy then you will have long-lasting implications on your credit.

If you arent sure if filing for bankruptcy is the right thing for you to do, then the main thing that you need to do is speak with a licensed insolvency trustee.

When you do, they can then work with you to make sure that you are given the support you need and they can also talk you through the various stages that you will face when you file for bankruptcy too.

They can be an invaluable resource.

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How Soon Can I File For Bankruptcy Again

How soon you can file for bankruptcy again and receive a discharge depends on the type of bankruptcy you filed before and the one you would like to file now. As a consumer, there are two main types of bankruptcy reliefs available to you.

This type of bankruptcy is commonly referred to as a liquidation or clean slate bankruptcy because qualified debtors do not need to repay their dischargeable debts. If you have received a Chapter 7 discharge, then you must wait a full eight years before filing another Chapter 7 case to be eligible for a discharge. Note that the clock on the eight years begins with your original filing date, not with the discharge date. And, in theory, you can file for bankruptcy the next day after the first Chapter 7 discharge, but a second discharge will not be permitted until eight years have passed.

Debtors who file for Chapter 13 wage earners bankruptcy have greater financial resources and income than those who file Chapter 7. As such, Chapter 13 filers are expected to establish a repayment plan lasting between three to five years with their creditors. The waiting period for filing a second Chapter 13 bankruptcy is much shorter at two years.

How Long Must You Wait Between Filing Different Bankruptcies

  • Chapter 13 to Chapter 7: Those looking to file Chapter 7 bankruptcy after Chapter 13 must wait at least 6 years from the filing date unless in the previous Chapter 13 bankruptcy you paid back all of your unsecured debts or a minimum of 70% of your unsecured debts through the repayment plan.
  • Chapter 7 to Chapter 13: Normally, you must wait four years between filing Chapter 7 and Chapter 13 bankruptcy, however, through Chapter 20 bankruptcy you can gain some of the benefits of both types of bankruptcy but there are also drawbacks.

This does not mean it is impossible to file bankruptcy in a shorter window than the allotted time periods, each case is unique and you may be surprised that the bankruptcy court decides to proceed with your case. By the same token, donât be surprised if the bankruptcy court also dismisses your case whether it’s too soon or within the appropriate time frame. And if you try to file again after a dismissal you may be looking at extra penalties.

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Second Time Bankruptcy What Rules Apply

In Canada, about 15% of people that have filed for bankruptcy end up declaring bankruptcy a second time.; Since approximately 60,000 Canadians will be declaring bankruptcy this year that means 9,000 of them likely have done so before.

The number of people filing second bankruptcies is large enough that in 2009 the federal government brought into effect new to deal with repeat filers.

Chapter To Chapter Options

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Chapter 7 to another Chapter 7 bankruptcy 8 years Chapter 7 now filing for Chapter 13 bankruptcy 4 years Chapter 13 now filing for Chapter 7 bankruptcy 6 years Chapter 13 to another Chapter 13 bankruptcy 2 years

The wait times help prevent abuse of the system and high credit card debt that cannot be repaid. You are expected to make your best effort to pay off bankruptcy in between filings.

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Does Filing For Bankruptcy A Second Time Make Sense

Financial difficulties can crop up at any moment. Many Americans seem to experience at least one crisis every decade, and they might consider filing for bankruptcy.

But what happens if you already filed for bankruptcy once before? The good news is that there is no rule preventing people from filing for bankruptcy a second time. However, you still need to qualify. And you should absolutely analyze whether there is an underlying issue that continues to cause you to feel financial stress.

How Much Time Has Passed?

You can file for a second bankruptcy, but you cant do so immediately after completing the first. Instead, the bankruptcy code will require that you wait a certain amount of time:

  • If you received a discharge from a Chapter 7, then you must wait 8 years from the date you filed your first case to receive a discharge in a subsequent Chapter 7
  • If you received a Chapter 13 discharge, you must wait at least 6 years from the date you filed your Chapter 13 to receive a discharge in a subsequent Chapter 7
  • If you received a Chapter 7 discharge, then you must wait four years from the date you filed to receive a discharge under a Chapter 13
  • If you received a discharge for a Chapter 13, you must wait at least two years from the date you filed the first Chapter 13 to receive a second discharge under Chapter 13

If you did not receive a discharge in your first bankruptcy, then other rules might apply.

Can You Discharge Your Debts?

  • Medical debt
  • Personal loans

If You’ve Filed For Bankruptcy Before You Must Wait A Number Of Years Before Wiping Out Debt In A New Case

Updated By Cara O’Neill, Attorney

If you’ve filed for bankruptcy before, you’ll have to meet certain requirements before you’ll be eligible to receive a debt dischargethe order that wipes out qualifying debt. In this article, you’ll learn how to:

  • check whether enough time has elapsed to receive a debt discharge
  • determine whether a court order will delay your filing further, and
  • know when you’ll need to file a motion for an automatic stay orderthe order that protects you from creditor collections during the bankruptcy case.

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What Can The Debtor Do If A Creditor Attempts To Collect A Discharged Debt After The Case Is Concluded

If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter. The bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a lawsuit, designed to collect a discharged debt. A creditor can be sanctioned by the court for violating the discharge injunction. The normal sanction for violating the discharge injunction is civil contempt, which is often punishable by a fine.

Can Chapter 13 Lower My Mortgage Payment

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Even though youre paying mortgage arrearages through a Chapter 13 plan, you can still work with your lender to modify your mortgage. Your interest rate could be adjusted, and therefore the monthly payment reduced, or your missed payments could be added to the end of your mortgage, thereby increasing its length.

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Can You File For A Second Bankruptcy If You Dont Have A Discharge For The First Case

In most court rulings, you can file for the second time and receive a discharge on the second case if you unsuccessfully received the discharge during the first case. However, this occurs in very rare scenarios. Filing for the second case without a discharge for the first case will make you lose the order thatll stop those you owe from collecting from you.

Mostly happen when you file the bankruptcy cases in succession without having discharges on the last case. The following are scenarios in which you can file for the second bankruptcy case without a discharge for the first case:

Multiple Bankruptcies On Your Credit Report

You may need to consider a court date in between filing for multiple bankruptcies. In some cases, an automatic stay can expire before your next bankruptcy discharge is filed. You need to make sure the discharge happens before the automatic stay expires.

Your credit report may have language such as:

  • Bankruptcy Chapter 13 – discharged
  • Filing date: 01/01/2013Status date: 01/01/2014

It could also say “there is a bankruptcy on your credit report” or “you have recently filed for bankruptcy” without listing specific details.

Having multiple bankruptcies on your credit history usually means you will have a hard time finding lenders and low interest rates, and you will have a poor credit score for a year or more.

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Bankruptcy Dismissed With Prejudice

When your bankruptcy case was dismissed with prejudice, there are some restrictions you will have to face, which occur when:

  • You didnt follow the courts orders
  • You dismissed your bankruptcy once motion was made by a creditor
  • You lied about your assets

Judges can be discrete when it comes to bankruptcy that is dismissed with prejudice. As a result of your bad behavior, you wont be allowed to file for bankruptcy ordischarge your debts ever again.

How Long Will My Second Bankruptcy Last

Can you file bankruptcy without your spouse or significant other?

Under Canadian bankruptcy law, a first bankruptcy lasts for a minimum of nine months. A second bankruptcy lasts for a minimum of 24 months . If you have surplus income, a second time bankruptcy will extend for 36 months .

A first bankruptcy appears on your credit report for a minimum of six years from the date of discharge. The current practice of Equifax, the largest credit bureau in Canada, is to report a second bankruptcy on your credit report for 14 years.

If you are considering filing a 2nd bankruptcy, you should consider your options to determine if its possible to avoid a second bankruptcy. If you can repay the debts on your own, or get a debt consolidation loan to deal with your debts, that may be a preferable option.

. Your creditors may be willing to accept a plan where you repay a portion of what you owe over an extended period of time, allowing you to avoid a second time bankruptcy. A consumer proposal administrator can advise you on the terms your creditors are likely to accept.

If a second bankruptcy is your only option, you should ask your trustee to explain in detail the projected costs so that you understand the costs and your obligations, to ensure that your second time bankruptcy is completed as quickly as possible.

if you think you need to file bankruptcy a second time. You may have better options.

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Alternatives To Repeat Bankruptcies

If you have been bankrupt previously you should give serious consideration to a again.; If you determine a second bankruptcy is the best solution for your situation make sure you understand each of your required duties before you file. about your situation to see whether filing a second bankruptcy or a consumer proposal is best for you.

Whether you file bankruptcy a second time or file a consumer proposal, take full advantage of the mandatory credit counselling sessions that are part of your duties so you can avoid another bankruptcy down the road.

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.

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Chapter 7 Followed By A Chapter :

You are free to file a Second Bankruptcy under Chapter 7 even if you received a discharge in your previous case. If you wait long enough, you are also entitled to receive a discharge again.

After you have received a discharge in your first Bankruptcy Filing Under Chapter 7, you have to wait for eight years before you file for Bankruptcy again under the same Chapter.

For example, if you file for Bankruptcy Under Chapter 7 on May 8, 2019, then you will be eligible for a discharge if you file a second Bankruptcy after May 8, 2027.

Filing prior to that the date would make you ineligible to get a discharge and you will be legally responsible for clearing your debts.

Do You Need Help Filing A New Bankruptcy Case

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If things are not working according to plan and you need to file a second bankruptcy case, we can discuss your situation and advice you accordingly. We value privacy, and you can be sure that whatever you tell us will remain between you and us.

Contact us today to schedule an appointment with one of our experienced online bankruptcy attorneys and let us help you take control of your financial situation. We will gladly go over your options and see how we can proceed.

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When You’ve Taken Advantage Of The Bankruptcy Process

If you do something wrong intentionally , the bankruptcy court can punish you by prohibiting you from filing another bankruptcy case for a specific amount of time. In such cases, the court dismisses your case “with prejudice

Failing to obey a court order will likely result in the court dismissing the case with prejudice. Filing multiple matters with the intent to delay creditors, voluntarily dismissing a bankruptcy after a creditor filed a motion for relief from the automatic stay, or otherwise trying to abuse the bankruptcy system will also be problematic. Expect the court to order you to wait 180 days before refiling another case in these situations.


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