If you have filed for bankruptcy once before and you feel like you need to do it again, you may be able to. It is possible to file for bankruptcy multiple times, but there are some important rules to follow and waiting times that you need to be aware of. A Bergen County bankruptcy lawyer from our firm can tell you what you need to know.
How Many Times Can I File For Bankruptcy?
There is not actually a limit on how often you can file for bankruptcy. There are waiting periods though, so you usually cannot just turn around and file again once you’ve completed a certain type of bankruptcy.
How long you have to wait can depend on what type of bankruptcy you went through and which kind you plan to enter into next. Individuals can file for a Chapter 7 bankruptcy, which liquidates assets in an effort to pay off debt, and Chapter 13, which creates a payment plan that gives you the chance to pay off creditors over time.
When Can I File For Bankruptcy Again?
If you have gone through Chapter 7 bankruptcy, then you must wait eight years before you can go through Chapter 7 bankruptcy again. The waiting period is shorter for Chapter 13 bankruptcy. You can file for this type of bankruptcy just four years later.
Filers of Chapter 13 bankruptcy must wait two years before filing for Chapter 13 bankruptcy again. Sometimes, people choose this type of bankruptcy type twice to make a payment plan more manageable. Making a payment plan, making your monthly payments for two years, and then filing again to adjust your payment plan is sometimes a possibility.
If you want to go through Chapter 7 bankruptcy after Chapter 13, then you must wait six years. However, if you have made all of your payments on your repayment plan and satisfied those creditors, you may be able to file right away.
Can Chapter 7 and Chapter 13 Bankruptcy Be Filed Back to Back?
To add another complication, it can sometimes be possible to file for bankruptcy back-to-back, as long as they are different chapters and a judge allows it. This is sometimes called a “Chapter 20” bankruptcy.
You could use Chapter 7 to discharge a large amount of debt. Then you can use Chapter 13 to make a payment plan for any debt that Chapter 7 couldn’t erase from your record. As we said though, this is not always allowed, which is why consulting a lawyer is your best option.
Talk to a Bankruptcy Attorney
If you are thinking about filing for bankruptcy and you have already filed before, you should get advice from a lawyer. Contact the Law Office of Boyd & Suitieri to schedule a consultation. We can tell you if you are eligible to file and advise you about whether it’s a good idea. Then we’ll help you handle all of the paperwork.