How Often Can You File Bankruptcy?

Thursday, July 20th - How Often Can You File Bankruptcy?

Bankruptcy is a legal process that helps individuals and businesses eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. But how often can you file bankruptcy? This is a question that many people ask, especially those who have previously filed for bankruptcy and find themselves in financial distress again.

There are different types of bankruptcy, each with its own set of rules and procedures. The most common types are Chapter 7 and Chapter 13 for individuals and Chapter 11 for businesses.

Chapter 7, often referred to as liquidation bankruptcy, involves the sale of a debtor's non-exempt assets by a trustee, and any proceeds are used to pay creditors. Chapter 13, often called a wage earner's plan, enables individuals with regular income to develop a plan to repay all or part of their debts over three to five years. Chapter 11 involves the reorganization of a debtor's business affairs and assets, typically filed by corporations that require time to restructure their debts.

The frequency with which you can file for bankruptcy depends on several factors, including the type of bankruptcy you previously filed and the type you wish to file now.

- If you have previously filed under Chapter 7, you must wait eight years from the date of the previous filing to file another Chapter 7 bankruptcy.

- If you wish to file under Chapter 13 after a Chapter 7, the waiting period is four years.

- If you previously filed under Chapter 13 and wish to file for the same again, you must wait two years from the date of the previous filing.

- If you wish to file under Chapter 7 after a Chapter 13, the waiting period is six years.

Contact us today at 626-338-5505. Let's work together to navigate these challenging times and help you embark on the path to a debt-free future. Your fresh start awaits.