Facing financial setbacks after bankruptcy can be discouraging, but it’s not uncommon. If you’re considering filing for bankruptcy again, it’s important to understand the legal rules around repeat filings. The requirements and waiting periods for filing a second bankruptcy depend on whether you’re filing under the same chapter as before or switching to a different chapter.

No Restrictions on Filing—But Limits on Discharge

While you can technically file for bankruptcy at any time, there are limits on how often you can have your debts wiped out (discharged). Most people only want to file when they’re eligible for a discharge, but there are some exceptions.

Filing Again Under the Same Chapter

If you previously filed for Chapter 7 bankruptcy, you must wait eight years from your last filing to receive another Chapter 7 discharge. For Chapter 13, you generally need to wait two years before filing for a second discharge under Chapter 13.

Switching Chapters for a New Filing

If your last bankruptcy was Chapter 7, you may qualify for a Chapter 13 discharge after four years. If your previous case was Chapter 13, you typically have to wait six years before seeking a Chapter 7 discharge, unless you paid all unsecured debts in full or made your best effort to pay at least 70% of those debts in the earlier case.

What If You Didn’t Receive a Discharge?

If you didn’t get a discharge in your first bankruptcy, you can usually file again at any time. However, if you file multiple cases close together, you may lose the benefit of the automatic stay that protects you from creditors. If your previous case was dismissed, you can often refile right away, except in certain scenarios where a 180-day waiting period applies (for example, if you didn’t follow court orders or voluntarily dismissed after a creditor tried to lift the automatic stay). If your discharge was denied, you likely can’t get those debts discharged in a future case.

Automatic Stay Considerations

If your most recent bankruptcy case was dismissed within the last year, the automatic stay only lasts 30 days in your new case. If you’ve had two or more bankruptcy cases dismissed in the last year, there’s no automatic stay unless you ask the court to impose or extend it.

Filing Without Seeking a Discharge

Sometimes, people file for bankruptcy—not to wipe out debts—but to buy more time to pay them off. For example, filing Chapter 13 after a Chapter 7 discharge (sometimes called a “Chapter 20” bankruptcy) can help you manage payments on remaining debts, like catching up on mortgage or car payments. While you won’t receive a discharge in the Chapter 13 this time, you gain more manageable payment terms and can address debts that weren’t eliminated in Chapter 7. In some cases, you may even be able to remove second or third mortgages through this process.

Given the complexities and nuances of repeat bankruptcy filings, it’s wise to consult a bankruptcy attorney. Leslie Craft at Craft Law Offices can review your past cases, explain your options, and help you strategize the best way forward for your financial recovery, give her a call today, 252-752-0297.