When filing bankruptcy many people wonder how many times they can file in their lifetime. The answer to this question totally depends on what chapter of bankruptcy the individual is filing. When it comes to Chapter 7 bankruptcy, otherwise known as a liquidation bankruptcy, the person will not be able to file another Chapter 7 for eight years. They are allowed to file Chapter 13 bankruptcy in four years though.
Looking at Chapter 7’s lesser-known stepsister of personal bankruptcy is Chapter 13 bankruptcy. In the case of a Chapter 13 one cannot file another Chapter 13 bankruptcy until at least two years have passed since the first one. If you are in the midst of a Chapter 13 bankruptcy and can no longer afford the Chapter 13 repayment plan, a person is allowed to convert their personal bankruptcy into a Chapter 7. One of the benefits of Chapter 13 bankruptcy is the flexibility to make changes in the middle of the process. The bankruptcy court wants the debtor to be successful and get the fresh start that filing bankruptcy was created for. If an individual loses their job, has an illness or family problems, they can call their bankruptcy attorney and ask to modify the Chapter 13 plan. The plan can be modified temporarily or permanently depending on the situation. If the wheels fall completely off and the individual is no longer able to continue on repaying on the plan, the! bankruptcy attorney can convert it to a Chapter 7 bankruptcy.
Sometimes there are other reasons why someone would need to re -file their bankruptcy petition. In some cases, either the debtor or the bankruptcy attorney made an error in the bankruptcy petition. Other times are when an individual had their cases dismissed because they failed to complete instructions given to them by the bankruptcy trustee. Most of the time, the case will be dismissed without prejudice allowing the person to file bankruptcy again. There are times when something happens in the timeframe when a family is filing bankruptcy. It might be a divorce or a death in the family and the bankruptcy petition will have to be re-filed to fit the new circumstances.
The bottom line is, when filing bankruptcy the court wants to see the debtor be successful at all costs. This of course is as long as the individual filing bankruptcy is being truthful with the bankruptcy court. Bankruptcy was created to give good hard-working Americans a second chance in their financial future and if the court doesn't offer some kind of flexibility, this wouldn't be possible.