How Soon Can I File Bankruptcy Again?

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is available to people who are not able to pay back most of their debts due to their low income and the amount of their living expenses. Chapter 7 debtors usually have their cases discharged within a few months. Typically, the only money distributed to the creditors is the debtor's tax refund and funds from any non-exempt property or assets the debtor possesses. Since it is fairly easy for debtors to discharge so many of their debts through Chapter 7 bankruptcy, Chapter 7 debtors who received a discharge have to wait eight years before they can file another Chapter 7 case.

People with enough disposable income to pay off some of their debts are eligible for Chapter 13 bankruptcy. Chapter 13 debtors create a payment plan that lasts from three to five years. The length of the plan depends on the amount of their monthly disposable income and the amount of debts required to be paid off through the bankruptcy. Since Chapter 13 debtors are paying back some of their debts over an extended period of time, a new Chapter 13 case can be filed in four years if a discharge was received in a previous Chapter 13 case.

When people continue to have financial difficulties after already receiving a discharge, it is possible for them to file under a different chapter of bankruptcy the next time around. If a person received a Chapter 7 discharge, he can file for Chapter 13 bankruptcy within four years. A person who completed a Chapter 13 case can file for Chapter 7 bankruptcy in six years. Speak with a bankruptcy attorney to confirm the eligibility requirements are satisfied before attempting to file for bankruptcy under a different chapter.

The permissible time frame for filing another bankruptcy case when the previous case was dismissed is fairly short. The bankruptcy court tends to dismiss cases when a debtor fails to comply with court orders. Some debtors voluntarily dismiss their case after a creditor has filed a motion to remove the debtor's property from bankruptcy protection. When a case is dismissed under either of those circumstances, the debtor has to wait 180 days before filing another case. The debtor can file another case in less than 180 days if he can show the new case was filed in good faith and can state why, due to extenuating circumstances, the 180-day time frame should not be applicable.