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Are you allowed to file for bankruptcy more than one time?

On Behalf of | Dec 21, 2022 | Bankruptcy And Debt Relief

Filing for bankruptcy allows you to get a fresh financial start and eliminate the stress and burden of accumulated debts. Once the process is complete, you may think you won’t have similar financial issues in the future.

Unfortunately, life is anything but predictable, and events happen, and circumstances change, which means there is no way to know if financial issues may occur again. If they do, you may need to file for bankruptcy again, but is this even possible?

Bankruptcy limits and options

When it comes to filing for bankruptcy, there are no limits on how many times you can file. However, there are time limits you must observe in between bankruptcy filing.

The general guidelines you must follow when it comes to filing bankruptcy again include:

  • After filing a Chapter 7. Wait eight years to file Chapter 7 again or four years to file Chapter 13.
  • After filing Chapter 13. Wait two years to file Chapter 13 again or six years to file Chapter 7.

In some situations, it is possible to change one bankruptcy into another. This occurs when someone files Chapter 13 to repay creditors through a repayment plan. However, their financial situation worsens, making it impossible to meet the requirements of the repayment plan. At this point, changing from Chapter 13 to Chapter 7 can be more beneficial.

The long-term impact of multiple bankruptcies on your credit report

When you file bankruptcy, the filing will appear on your credit report. Having one bankruptcy can impact your ability to get low-interest credit cards and loans. However, this situation is made somewhat more difficult if you have multiple filings on your credit report. Because of this, it is good to explore all your options before filing for another bankruptcy, even if possible.