How Long After Bankruptcy Can You File Again?
Considering a new bankruptcy filing? Understand the essential waiting periods and eligibility criteria for a fresh financial start.
Bankruptcy offers a legal process for individuals seeking relief from overwhelming debt, providing an opportunity for a fresh financial start. While a powerful tool, bankruptcy operates under specific regulations, including rules about how often one can seek this protection. Understanding these guidelines is important for anyone considering re-filing.
Re-filing Chapter 7
Re-filing for Chapter 7 bankruptcy involves specific waiting periods. If an individual received a discharge in a prior Chapter 7, they must wait eight years from the filing date of that previous case before filing a new Chapter 7 to receive another discharge. This eight-year period begins counting from the date the initial Chapter 7 petition was filed, not the date the debts were discharged. Attempting to file a new Chapter 7 before this period has passed means an individual will not be eligible to receive a discharge in the new case.
The waiting period changes if the previous bankruptcy was a Chapter 13. An individual must wait six years from the filing date of a previous Chapter 13 before filing a Chapter 7 to receive a discharge. This six-year waiting period can be shorter under specific conditions. If the previous Chapter 13 plan paid 100% of unsecured claims, or at least 70% under a good faith plan representing the debtor’s best effort, the six-year waiting period may not apply.
Re-filing Chapter 13
Specific waiting periods apply when re-filing for Chapter 13 bankruptcy. If an individual previously filed a Chapter 7, they must wait four years from the Chapter 7 filing date to file a new Chapter 13 and be eligible for a discharge. Filing a Chapter 13 sooner than four years after a Chapter 7 may still offer protection from creditors through the automatic stay, but a discharge for new Chapter 13 debts might not be granted.
When re-filing Chapter 13 after a previous Chapter 13, the waiting period is two years. This two-year period is counted from the filing date of the earlier Chapter 13 to the filing date of the new Chapter 13. Because Chapter 13 repayment plans often span three to five years, this two-year waiting period means an individual can file a new Chapter 13 relatively soon after completing their prior plan.
Discharge Eligibility and Waiting Period Calculation
A bankruptcy discharge is a court order releasing a debtor from personal liability for certain debts. This means the debtor is no longer legally required to pay those discharged debts, and creditors are prohibited from attempting to collect them. Receiving a discharge is the primary goal for individuals filing for bankruptcy, as it provides a fresh financial start.
The waiting periods discussed for re-filing bankruptcy primarily concern eligibility to receive a new discharge. While an individual might file a new bankruptcy sooner, they may not obtain a discharge of debts if they do not meet the specified waiting periods. These waiting periods are calculated from the filing date of the previous bankruptcy, rather than the discharge date. This distinction is important because the discharge in a Chapter 7 case typically occurs about four months after filing, while a Chapter 13 discharge happens after the completion of a three to five-year repayment plan.
These waiting periods prevent misuse of the bankruptcy system. They also protect creditors by ensuring a reasonable opportunity to recover some losses before another potential discharge of debts.
Effect of Case Dismissal
When a bankruptcy is dismissed, rather than discharged, the rules for re-filing can change significantly. A dismissal means the court closed the case without eliminating the debtor’s debts, leaving them still obligated to pay. Dismissals can occur for various reasons, such as failing to follow court orders, missing deadlines, or not making required payments in a Chapter 13 plan.
If a previous case was dismissed without prejudice, an individual can re-file immediately. However, if dismissal was due to the debtor’s failure to obey court orders or voluntarily dismissing the case after a creditor sought relief from the automatic stay, a 180-day waiting period might apply before re-filing. A dismissal “with prejudice” is more severe and can bar re-filing for a specified period, or in some cases, permanently for the same debts.
A dismissed case also impacts the automatic stay, the legal protection that halts most collection actions when bankruptcy is filed. If a new bankruptcy is filed within 12 months of a previous dismissal, the automatic stay may be limited to 30 days. If two or more cases were dismissed within a year, the automatic stay may not take effect at all in a subsequent filing without a specific court order.