Many people who have filed for bankruptcy will never have to do so again. They are able to clear their debts, get a clean financial slate, and make sound budgeting and spending choices. However, there are times when a person who has filed bankruptcy before, may be looking at having to file again. For these individuals, knowing the effects of filing for bankruptcy again as well as the rules about multiple bankruptcies will be essential.

There is no limit on the number of times a person can file for bankruptcy. However, there are limitations on the time you will have to wait between filing. For instance, under Chapter 7 bankruptcy, once you have discharged your debts, you cannot file again under this chapter for eight years. Usually, after you have discharged your debts under Chapter 13, there is a time limit of 6 years before you can file under Chapter 7. However, there can be exceptions to this time limit if you discharge your debts in good faith and have paid a certain percentage of them.

Those who have already been through a Chapter 13 bankruptcy can file another Chapter 13 bankruptcy. However, they will have to wait two years from the when they filed your previous Chapter 13 case.  For those that have filed and had their debt discharged under Chapter 7, they can file for a Chapter 13 bankruptcy but must wait four years from when they filed their Chapter 7 bankruptcy. This type of filing is often referred to as a Chapter 20 bankruptcy. 

While these time limitations will apply to most circumstances, there are cases where the bankruptcy court will impose limitations and restrictions on the time period for filing another bankruptcy. These are usually due to the debtor not following the rules or seeking to disrupt the process during their first bankruptcy. Additionally, while filing for bankruptcy usually affords the debtor protection from creditors under the automatic stay, if a first bankruptcy is dismissed and another one is filed within a year the automatic stay is only for 30 days. If there are two or more dismissals within one year of the newly filed bankruptcy, the automatic stay will no longer be in effect.

Once you have determined that you meet the eligibility and time requirements for filing it will be important to assess your situation to determine if another bankruptcy is right for you. Just as in the case of your prior bankruptcy, you will need to examine your debts and find out if they qualify for discharge. You will also need to determine if you have valuable assets which you want to retain and if you are eligible for a bankruptcy which will allow for you to do so. You will also have to weigh the damage to your credit which a bankruptcy can cause and other financial goals you may have in the future.



Consulting with an experienced bankruptcy attorney will help you in determining if you should seek to file a subsequent bankruptcy case.  We have the knowledge and experience you need to help you understand your options and make informed choices. Please contact us online or by phone if we may be of assistance.  http://bestmichiganlawyer.com/contact-us