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Wednesday, April 11, 2012

How Often Can You File Bankruptcy?

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.


  1. You can trust the information in Filing for Bankruptcy, Made Simple. I believe it gives you what you really need to know to decide on filing for bankruptcy.

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  2. Hello! Glad to have a chance to drop by and learn additional information about this particular topic from your blog. Keep up the good work! Thank you so much for sharing your knowledge about bankruptcy. You have an interesting and very informative page. I'll be looking forward to visit your page again and for your other posts as well.
    In addition to that, I remembered reading another article about bankruptcy that states that in Chapter 7, a debtor surrenders his or her non-exempt property to a bankruptcy trustee who then liquidates the property and distributes the proceeds to the debtor's unsecured creditors. In exchange, the debtor is entitled to a discharge of some debt; however, the debtor will not be granted a discharge if he or she is guilty of certain types of inappropriate behaviour (e.g. concealing records relating to financial condition) and certain debts (e.g. spousal and child support, student loans, some taxes) will not be discharged even though the debtor is generally discharged from his or her debt. Many individuals in financial distress own only exempt property (e.g. clothes, household goods, an older car) and will not have to surrender any property to the trustee. The amount of property that a debtor may exempt varies from state to state. Chapter 7 relief is available only once in any eight year period. Generally, the rights of secured creditors to their collateral continues even though their debt is discharged. For example, absent some arrangement by a debtor to surrender a car or "reaffirm" a debt, the creditor with a security interest in the debtor's car may repossess the car even if the debt to the creditor is discharged.
    We understand that you are feeling stress and worry about your financial future. Our firm can take some of the burden off your shoulders.

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  3. Thank you for this information! I honestly didn't know you could file more than once. Which brings me to my point in being here, money is tight and I need a personal injury attorney in Oak Forest. Anyone have any suggestions?



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