While Chapter 7 and Chapter 13 bankruptcies can be enough to get many people out of unpayable debt, it’s also not unheard of for people to need to file again.
A repeat bankruptcy is seldom due to irresponsible spending. Perhaps they filed for Chapter 13 the first time and the payment expectations still proved too high, so they now need to file for Chapter 7. Or perhaps a medical emergency or a job loss — the sort of unpredictable thing that can happen multiple times in a life — wrecked their newly found financial stability.
The question anyone in such a situation may want to know is: can they file yet, or do they have to wait?
It depends on the previous type you filed
You generally do have to wait a stipulated amount of time between filings, but the wait depends on the two filings involved. Just to be clear, you can file more than two bankruptcies over time, but there will still be a set amount of time to wait between any two of them.
The obligatory wait period is between filing dates, not discharge dates. It is as follows:
- Chapter 13 after Chapter 13: 2 years
- Chapter 13 after Chapter 7: 4 years
- Chapter 7 after Chapter 13: 6 years
- Chapter 7 after Chapter 7: 8 years
The reason for these differences is that Chapter 7 bankruptcies write off debts, whereas Chapter 13s work out payment plans for the debt, so Chapter 7 is more restrictive. Exceptions can apply to the waiting periods, such as if your previous filing was dismissed or you ended up paying off all the debt.
Anyone considering filing should consider experienced legal guidance to examine their options, regardless of whether it is their first time or they have filed before.
