Bankruptcy is a process that helps people recover from overwhelming debt, such as medical bills, late fees and credit card debt. There are two popular forms of bankruptcy: Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy helps people who can not afford to pay off their debts. At the end of the process, a large amount of the debtor’s debt is relieved. Chapter 13 bankruptcy is an option for people who can pay off some of their debts, but may be struggling to do so. This process reorganizes debt obligations and creates a payment plan, which also resolves remaining debts after the obligated payments are made.
Anything can happen and a debtor may need to file bankruptcy again. How many times can you file for bankruptcy? There is no limit, however, debtors will need to wait in between successful bankruptcy filings. Here’s how long a debtor would need to wait:
You must wait before you can file for bankruptcy again
For a successful bankruptcy filing after a prior filing, the debtor will need to wait several years. Here’s how long it would take:
- 2 years for a Chapter 13 filing after a Chapter 13 bankruptcy filing
- 4 years for a Chapter 7 filing after a Chapter 13 bankruptcy filing
- 6 years for a Chapter 13 filing after a Chapter 7 bankruptcy filing
- 8 years for a Chapter 7 filing after a Chapter 7 bankruptcy filing
Filing for bankruptcy is not always preferred since it will affect a debtor’s credit score again. However, a lowered credit score may be a necessary sacrifice to relieve overwhelming debt obligations. To learn more about your legal options, you may need to reach out for help.
