How many times can bankruptcy be filed?

Bankruptcy is a result of life’s sometimes brutal financial challenges. Nobody expects to have to file bankruptcy once, much less two or three times.  It’s unfortunate, but it does happen, and it happens to people who look just like you and I.  Although filing bankruptcy is a matter of public record, it often goes unnoticed by family, friends, co-workers, and neighbors.  That’s because the life and home of a person who has filed bankruptcy, looks pretty much the same after bankruptcy, as it did before.  Someone can file bankruptcy several times in their life, and the same remains true.

Who files multiple bankruptcies?  Studies have found that 8-10% of those who file bankruptcy have filed at least once before.  This number represents those who have “filed,” but not necessarily cases which have been discharged.  It’s also important to note that Chapter 13 is a type of debt “repayment” plan.  So, although it’s still considered bankruptcy, these people used the law to help them get back on their feet and repay debtors.

Life Throws us all Curve-Balls

curve-ballIt’s not a far stretch of the imagination to understand why people may have to file more than once, and why more young people are filing today than in previous years.  Consider a young family with preexisting debt, little to no assets, dependent children, etc.  Throw in some life curve-balls such as divorce, accidents, loss of income, or medicals conditions such as cancer.  These are the types of situations that lead to bankruptcy, and they can happen in intervals throughout life.

How many times can bankruptcy be filed?

The type of bankruptcy filed, as well as the order and timing of which subsequent bankruptcies are filed or discharged all matter.  If the second bankruptcy type differs from the first, the timeframe allowed between filings will change, in some cases allowing less wait time in-between.  However, if filing the same type of bankruptcy each time, some general rules can be applied:

  • Chapter 7 Bankruptcy:  If you received your first discharge under a Chapter 7, you cannot receive a second discharge in any Chapter 7 case that is filed within eight years from the date that the first case was filed.
  • Chapter 13 Bankruptcy:  If you received your first discharge under Chapter 13, you cannot receive a second discharge in any Chapter 13 case that is filed within two years from the date that the first case was filed.  Nolo

When dealing with different bankruptcy codes, filings, discharges, terms, cases, waiting times and outcomes, (such as dismissals, delays, denials, etc.), things can get pretty confusing!  Financial troubles are stressful enough.  Most law offices today offer free initial consultations, so you can quickly get the answers you need to find out how your financial hardship can best be resolved.

Debt-Advisors-Logo At Debt Advisors Law Offices, you can hire an experienced Wisconsin Attorney who is familiar with both state and Federal Laws, for as little as $100.  Although results and fees will vary by individual circumstances, bankruptcy is clearly an economically viable option to get out of debt.

More Information? Contact Us:

Follow Us On:

image image image