How Long Before I Can File Bankruptcy Again?

Navigating financial distress can be challenging, and for some, bankruptcy offers a path to a fresh start. Federal law permits re-filing for bankruptcy, but it establishes specific rules and waiting periods that govern when a new case can be initiated and when a discharge of debts can be obtained.

Waiting Periods for Chapter 7 Filings

An individual considering a Chapter 7 bankruptcy filing after a previous bankruptcy must adhere to specific waiting periods, which vary depending on the type of prior filing. These periods are generally calculated from the filing date of the previous case to the filing date of the new case.

If a debtor previously filed for Chapter 7 bankruptcy and received a discharge, an individual typically must wait eight years before filing another Chapter 7 case to be eligible for a new discharge of debts. Filing a new Chapter 7 petition before this eight-year period has elapsed means the debtor will not receive a discharge of their debts in the new case.

When a previous bankruptcy was a Chapter 13 case, the waiting period to file for Chapter 7 is usually six years from the date the Chapter 13 petition was filed. There are specific conditions that can shorten this six-year waiting period. If the prior Chapter 13 plan resulted in 100% repayment of all unsecured claims, there is no mandatory waiting period to file a new Chapter 7 case. Similarly, if the Chapter 13 plan paid at least 70% of unsecured claims, and the plan was proposed in good faith and represented the debtor’s best effort, the six-year waiting period may not apply.

Waiting Periods for Chapter 13 Filings

Individuals seeking relief through Chapter 13 bankruptcy after a previous filing also face specific waiting periods before they can file again and receive a discharge. The calculation of these waiting periods typically starts from the date the prior bankruptcy petition was filed.

For a debtor who previously filed Chapter 13 and received a discharge, the waiting period to file another Chapter 13 case is generally two years from the filing date of the earlier case. Even if a previous Chapter 13 case was dismissed without a discharge, the ability to re-file for Chapter 13 may be possible sooner, though specific circumstances of dismissal can impact this.

If an individual previously filed Chapter 7 bankruptcy, the waiting period to file a Chapter 13 case is four years from the Chapter 7 filing date. This four-year period specifically governs eligibility for a discharge in the new Chapter 13 case. It is possible for a debtor to file a Chapter 13 case sooner than four years after a Chapter 7 filing, especially if the primary goal is not immediate debt discharge but rather protection from collection actions, such as halting a foreclosure. This strategy is sometimes referred to as a “Chapter 20” filing, combining elements of both bankruptcy types.

Impact of Previous Filings on Discharge Eligibility

The ability to file a new bankruptcy case does not automatically guarantee eligibility for a discharge of debts in that new case. Prior bankruptcy filings can significantly affect whether a debtor can receive a discharge, which is the legal order eliminating the obligation to pay certain debts. Understanding these limitations is important for assessing the true benefit of a subsequent filing.

A specific restriction known as the 180-day bar prevents re-filing under certain circumstances. An individual cannot file a new bankruptcy case for 180 days if their previous case was dismissed voluntarily after a creditor requested relief from the automatic stay. This bar also applies if the previous case was dismissed by the court due to the debtor’s failure to appear or comply with court orders. This 180-day rule is a direct prohibition on filing the case itself, not just on receiving a discharge.

Even when eligible to file a new Chapter 13 case, a debtor’s ability to receive a discharge of unsecured debts can be limited by recent prior discharges. If a Chapter 13 case is filed less than four years after a discharge was received in a Chapter 7 case, the debtor may not be granted a discharge of unsecured debts in the new Chapter 13 case. Similarly, if a new Chapter 13 case is filed less than two years after a discharge was received in a previous Chapter 13 case, the debtor may also be ineligible for a discharge of unsecured debts in the subsequent filing. Filing a Chapter 13 case without discharge eligibility can still provide benefits, such as establishing a repayment plan for secured debts or stopping creditor actions through the automatic stay. However, the duration of the automatic stay in subsequent filings can be limited, potentially lasting only 30 days if a prior case was dismissed within the preceding year, or not taking effect at all if multiple cases were dismissed within that timeframe.