Debt relief provides many families with the opportunity to regain financial stability. One of the most popular forms of debt relief includes Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is a liquidation process that relieves large amounts of debt in a short amount of time. Chapter 13 bankruptcy allows debtors to reorganize their debts and establish a payment plan to wipe their debts over a few years.
Debtors may need to use bankruptcy again if, for example, they experience medical debt or financial strain again. Debtors often want to know if they can file for bankruptcy again. The answer to that question is yes. However, debtors may need to wait before they can file for bankruptcy a second time. Here is what you should know:
How long will you have to wait to file a second bankruptcy?
People can file for bankruptcy any number of times during their life. Yet, there are certain limitations that prevent people from abusing the bankruptcy process.
One limitation is that debtors may need to wait several years to file for bankruptcy consecutively. The number of years filers will need to wait often depends on whether they filed Chapter 7 or Chapter 13 bankruptcy previously and the type of bankruptcy they want to file next.
The waiting periods to file for bankruptcy a second time include:
- Chapter 7 to Chapter 7: 8 years
- Chapter 13 to Chapter 7: 6 years
- Chapter 7 to Chapter 13: 4 years
- Chapter 13 to Chapter 13: 2 years
If a previous bankruptcy case was not discharged, then a filer may only need to wait 180 days from their last filing. Legal guidance can help debtors prepare for their bankruptcy filing.
