Each form of bankruptcy has limitations on how often it can be filed. Dependent on the sort of bankruptcy you filed, you may have to wait anywhere from two to eight years before you may file again. There may be no required waiting time in some circumstances.

The most prevalent kinds of personal bankruptcy are discussed here so that you may make an informed decision about your financial future. Municipal bankruptcy, commercial bankruptcy, bankruptcy for family farmers and fishers, and bankruptcy involving more than one countries fall under Chapters 9, 11, 12, and 15, respectively.

It might be confusing to figure out how often you are allowed to apply for bankruptcy. If you're a person seeking to determine whether or not you qualify for a second bankruptcy filing, this manual can help.

How Frequently Are People Allowed To Declare Bankruptcy?

The number of times someone can declare bankruptcy varies from one sort of bankruptcy to the next. Example: Chapter 7 and Chapter 13 bankruptcies, the two most prevalent forms for individuals, have differing waiting periods.

A bankruptcy discharge absolves you of liability for debts that are part of a bankruptcy case, but only when a waiting time has passed.

How Frequently Can a Chapter 7 Bankruptcy Be Filed?

Chapter 7, often known as liquidation bankruptcy, sells off the debtor's assets to recoup money owed to creditors. You must wait at least eight years to apply for Chapter 7 bankruptcy again after filing for bankruptcy under Chapter 7 or Chapter 11.

Chapter 11 bankruptcy is often utilized by corporations, although individuals can also petition under this chapter to reorganize their finances. If you have filed for bankruptcy before but under Chapter 13, the rules might get more difficult when you want to switch to Chapter 7 this time around.

What Is The Chapter 13 Repetition Limit?

A debtor in Chapter 13 bankruptcy, often known as a wage earner's plan, can propose to the court a repayment schedule of three to five years to satisfy all or a portion of their unsecured obligations.

Waiting at least four years after a Chapter 7 bankruptcy discharge is required before filing a Chapter 13 bankruptcy case. However, the waiting time is often reduced to two years from the date of the prior bankruptcy filing if Chapter 13 bankruptcy was previously filed.

What Is The Limit on Bankruptcy Filings?

There is no restriction on the number of times you can file for bankruptcy, although there is usually a waiting period between Chapter 7 and Chapter 13 filings. Filing for bankruptcy more than once is possible, but it's important to remember that doing so might further harm your credit. If you file for Chapter 7 bankruptcy, it will remain on your credit record for ten years from the filing date; if you file for Chapter 13, it will appear for seven years.

Incorrectly Filing Forms Twice (Chapter 20 Bankruptcy)

Chapter 20 bankruptcy, or double filing, is filing a Chapter 13 bankruptcy case following the conclusion of a Chapter 7 bankruptcy case. Instead, it is a term for double filing. There are benefits and drawbacks to switching to Chapter 13 bankruptcy from Chapter 7.

Pros

The primary benefit of Chapter 20 is that it gives you a longer period to repay your creditors, which might result in a larger debt discharge than if you had filed for Chapter 7 or Chapter 13 bankruptcy alone.

Those who file for Chapter 7 bankruptcy can discharge their unsecured debts, such as credit card and medical expenses. In contrast, Chapter 13 allows you to propose a repayment plan for any or all of your secured and unsecured obligations over three to five years.

If you file Chapter 7 first, you may be able to reduce your debt to an amount that is manageable under Chapter 13's debt restrictions. A Chapter 13 bankruptcy filing following a Chapter 7 discharge may also provide more time to make up for missed payments on things like mortgages and automobiles.

Cons

Some of the drawbacks of double filing are as follows:

Certain debts, including alimony, child support, and various taxes, will remain unforgivable even after filing for bankruptcy. To be eligible for a complete discharge of debts in Chapter 7, you must wait four years before filing Chapter 13.

If you're filing for Chapter 13 after Chapter 7, you'll need to show the court that you're doing it in good faith. Filing for both bankruptcy chapters can lengthen the time it takes to get your finances in order.