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Can I File Bankruptcy Again?

I Have Already Filed for Bankruptcy in the Past. Can I File for Bankruptcy Again?

People wish that they only go through one financial crisis in their lifetime, but some conditions which is out of your control where you have to go through another financial crisis. Suppose that you lost your job or became ill and request bankruptcy to clear your debts. Let say that it happened again which is unexpected like coronavirus (Covid-19). There are no limits as to the amount of Bankruptcy a person can file under the Bankruptcy code. A person can file as many bankruptcies as they can. On the other hand, there are mandatory waiting time periods between discharge and the type of bankruptcy one had filed previously.

There are rules as to file multiple bankruptcy which are the following:

  • A person received a Chapter 7 bankruptcy discharge where that person must wait 8 years from the date of filing to filing another Chapter 7 bankruptcy.
  • A person who received a Chapter 13 bankruptcy where that person must wait 6 years from the date of filing to file a bankruptcy again under Chapter 7. An exception to this rule is that you paid at minimum 70% of your unsecured creditors in the previous Chapter 13 bankruptcy, you do not have to wait as long.
  • A person received a Chapter 7 bankruptcy discharge where that person has to wait 4 years to file a Chapter 13 which is known as Chapter 20 bankruptcy.
  • A person received a Chapter 13 bankruptcy discharge where that person must wait 2 years from the date of filing that Chapter 13 bankruptcy.
If Your Case was Dismissed, are There any Restrictions in Filing Another Bankruptcy Filing?

If you voluntarily dismissed your own bankruptcy case or you failed to obey court orders, then your bankruptcy case will be dismissed with prejudice. The court will permit you to file another bankruptcy filing after 180 days. Furthermore, if you filed on bad faith based on a court determination or acted in a bankruptcy crime such as fraud, the court has the power to prohibit you from filing for a longer period of time or forever not permitting you to discharge some types of debts.

Can Repeat Filings Limit Your Automatic Stay?

Automatic stays are important because it prevents the creditors collecting on its debts during that time period. On the other hand, suppose that you had your bankruptcy case dismissed and then you filed another bankruptcy petition within one year, you have only 30 days for your limited stay. If you have two or more dismissals within a one year, your automatic stay will be eliminated. You can request the court to extend your automatic stay by proving under clear and convincing evidence, your repeat filing was in good faith.

Should you have any questions, contact the Soubra Law Firm at 301-219-5038. We would be happy to assist you in your bankruptcy endeavor.

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