Why would you file bankruptcy again?
Sometimes certain life events happen more than once. For example, a lot of families have more than one child or have lived in more than one house over the course of their lives. These are examples of how life can repeat itself in good ways, but there are also instances where the events that happen more than once are not as pleasant. One of the most common unpleasant repeat life offenders if that of financial difficulty. For a lot of people, just when they feel like they are making positive strides, an unexpected illness or disaster strikes, wiping out their savings account or making it hard to continue to meet monthly obligations as they become due. In those circumstances, the answer might be to file for bankruptcy in order to get a fresh financial start.
But, what do you do if you have filed a bankruptcy case before?
Are you allowed to file a new bankruptcy? If so, what type of relief can you expect?
The answer is, “Yes, you can file for bankruptcy even if you have filed a case before.” However, there are some limitations to what type of bankruptcy case you can file and whether you received a discharge. The discharge is the official entry by the Court that the debts included in your bankruptcy case are no longer due.
Some of the rules on filing bankruptcy more than once are:
- If you filed a Chapter 7 previously and it was discharged, you cannot file a new Chapter 7 case unless it has been more than 8 years since the first case was filed.
- If your first case was a Chapter 13, you have to wait two years before you can file another Chapter 13.
- If you filed a Chapter 13 first and received a discharge, you are allowed to file a Chapter 7 six years later.
You also have to act in good faith when filing a second (or third) bankruptcy and this can be determined by looking at the outcome of your prior case and your current financial situation. Filing bankruptcy more than once is not uncommon, but it can be tricky. In order to make sure you do not make a mistake, allow a qualified legal bankruptcy professional to help you. Call us now at (916) 485-5444 to schedule your free attorney consultation.