Are You Allowed to File for Bankruptcy More Than Once?
It is essential to be knowledgeable of the two types of bankruptcy available in the U.S., Chapter 7 and 13, before we explore if one can file for bankruptcy multiple times.
Chapter 7 liquidation or straight bankruptcy can help release you from most debts without having to repay them. This is done by selling some of your possessions, like a second home or other luxury items such as jewelry and artwork and using the proceeds towards settling creditors' claims. To be eligible for Chapter 7, applicants must pass the "means test" which gauges whether there is enough income available after essential bills are taken care of that could go toward paying back debt holders.
In comparison, Chapter 13 bankruptcy reorganizes your debt instead of eliminating it. Based on the court's approval, you will have to make payments corresponding with a repayment plan customized according to your income and expenses. On average this payment period is set between three and five years; if all terms are met within these years, then some of the remaining debt may be discharged at its conclusion.
So that brings us back to the main point of this article — how often can you file for bankruptcy?
When considering filing for bankruptcy again, it is important to consider the type of bankruptcy – Chapter 7 or 13 – and how long ago your previous filing was completed or dismissed. If you have had a Chapter 7 discharge within the last 8 years, or a Chapter 13 discharge or dismissal within the last 6 years, then unfortunately you may not be eligible for another bankruptcy until that time has passed.
Furthermore, for either chapter to be filed again there must have been no fraudulent activities performed during any past filings or dismissals. Also, you need to demonstrate that meaningful efforts were made towards becoming free of debt in the same period (such as evidence of attending credit counseling classes).
Making the choice to declare bankruptcy is a difficult decision, so it's essential to be mindful of when and how often one can do this. If you think that filing for bankruptcy may be in your best interest, call Lewis and Jurnovoy, P.A right away at (850) 432-9110.
Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts.
Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401
(850) 913-9110
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