How Often Can You File for Bankruptcy?

Bankruptcy attorneys are frequently asked by clients and prospective clients, “How often can you file bankruptcy?”  Well, the short, but misleading, answer is as often as you like.  It’s important to know, however, that despite the fact that the Bankruptcy Code does not limit how often a person may file bankruptcy, it does limit how often a person may receive a discharge. 

Limitations on Discharges

A person may receive one Chapter 7 discharge every eight years.  Additionally, a person who receives a Chapter 7 discharge must wait six years to receive a Chapter 13 discharge.   

 A person may receive one Chapter 13 discharge every two years. However, if a person has received a Chapter 13 discharge, he must wait four years before he will be granted a discharge in a Chapter 7 case. 

Nothing in the Bankruptcy Code prevents a debtor who is not eligible for a discharge from filing bankruptcy.  For some debtors who are not eligible for a discharge, filing bankruptcy may still be advantageous for the following reasons: 

• It may buy a debtor time to cure a mortgage arrearage or to negotiate a workout agreement or settlement on other types of debts; and
• It can stop a foreclosure, repossession, lawsuit, levy, or garnishment, subject to certain limitations. 

Is There a Waiting Period if a Bankruptcy Case is Dismissed?

If a bankruptcy case is dismissed, a debtor may refile at any time.  However, there may be some limitations on the protections afforded by the automatic stay.  The Bankruptcy Code imposes limitations on the automatic stay for repeat filers if: 

• The debtor has had one case dismissed in the previous year; or
• The debtor has had two or more cases dismissed in the previous year. 

Getting Legal Help

If you previously received a discharge or have had a case dismissed and are considering filing bankruptcy again, you should schedule a consultation with a qualified bankruptcy attorney.  A bankruptcy attorney will review your case in light of the previous discharge or the dismissal and advise of how you should proceed.