One After Another: Can You File For Bankruptcy Twice?

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Depending on the situation, people can file for bankruptcy twice. However, doing so isn’t a straightforward process.

Life is cruel.

Regardless of how you’ve already faced the consequences of your previous decisions if the situation calls for it, you can easily fall back to the same risks again. Such is also applicable to debt cases and bankruptcy. Fortunately, repeating the same pattern can be resolved through the same process. Sure, people can rebuild their credit after bankruptcy to bounce back. But often, it’s best to realize that applying for bankruptcy is the best option.

When once again victimized by their financial capacity, people can file for bankruptcy twice. However, while it’s technically going through the same procedure, documenting and submitting the exact requirements, the process can remain as complicated as the first attempt. Not to mention, misinformed offices are spreading wrong information about this re-filing process.

It’s possible to ask for additional time when struggling with a financial crisis. Most can file a second or third bankruptcy. But to avoid abusive individuals, there are certain limitations one must follow. For anyone who’s struggling and considering filing again, here is some more information.

How to File for Bankruptcy Twice?

It’s established that individuals can file for bankruptcy twice or even on multiple occasions. After all, as unfortunate as this sounds, people aren’t limited to how many financial debacles they’ll face. As long as they navigate the world, desire things, and purchase necessities, anyone can fall victim to bankruptcy.

Fortunately, multiple law offices are readily available to help them through the process, and they can avail of this assistance as often as necessary. However, when people can file varies depending on their circumstances and the factors influencing their waiting period. This means they must tick these check boxes to move on to their subsequent filing.

So, what should one do?

Filing for bankruptcy is complicated. What more when individuals have to file for bankruptcy twice? It’s treading down the same road. But this time, there are different obstacles and woes to encounter.

Regarding bankruptcy, the experience is categorized under two main branches: Chapter 7 and Chapter 13. Each comprises different systems and is governed by different rules, making the whole documentation and application more complicated than it should be.

Fortunately, to save you the trouble of comprehending such complicated jargon, The Law Offices of Ronald E. Stadtmueller is here to help. As an expert in Chapter 7 in San Diego, Ronald can answer any of your inquiries and settle uncertainties you might have before the process.

Key Differences Between Chapter 7 And Chapter 13

The primary difference between these two is simple: Chapter 7 discharges individuals from specific debts, while Chapter 13 helps them reorganize the money they owe.

These differences may look easy to consume and process, but in thorough analysis, they can be pretty confusing. How they vary influences the requirements to file and move from one bankruptcy to another when necessary. These factors also influence the frequency and period for when people may file for bankruptcy twice or more. But generally, the rule can be summarized into the 2-4-6-8 rule. It’s easy to remember, given it’s simply doubling the previous frequency.

Here’s the breakdown of the filing waiting period based on the previous chapter and the subsequent one the individual wishes to file the next.

Chapter 13 After Chapter 13

Once the person has been fully relieved of their Chapter 13 needs and is looking to file again, they must wait two years to file for bankruptcy twice successfully. Among the options, this is the shortest duration allowed, but even so, it can be a challenge to wait, depending on one’s purchasing lifestyle.

Although it seems like the best option for a subsequent filing, a Chapter 13 to Chapter 13 sequence is also the rarest combination to experience. This chapter usually takes three or five years to repay but may be quickly discharged for other problems.

Chapter 13 After Chapter 7

Indeed, the Chapter 13 bankruptcy is among the quickest to discharge and be filed for again. But if the individual came off of Chapter 7, they must wait four years to file for a Chapter 13 bankruptcy successfully. In the instance that these four years are too long, people can avoid the waiting game by opting for another Chapter 13. But this is along the condition that the new Chapter 13 can’t be discharged. Instead, it’s primarily used to repay the ongoing Chapter 7.

Chapter 7 After Chapter 13

To file for bankruptcy twice after a Chapter 13, individuals must file for a Chapter 7 after six years since the discharge. However, this waiting period may only be waived if the individual has paid their Chapter 13 debts in full or at least 70%. There should also be proof that everything has been done in good faith and with the individual’s effort to repay their debts.

Chapter 7 After Chapter 7

Once the individual’s initial Chapter 7 debt has been repaid and discharged, they can file for another case of the same category after eight years. Although Chapter 7 is among the most common forms of debt, it’s one of the strictest and most difficult to settle afterward. The transition from one Chapter 7 to the next also has the most prolonged waiting period within the sequence of debts.

The bankruptcy process is complicated. But to help you with the burden, The Law Offices of Ronald E. Stadtmueller is ready to assist you throughout the process. Contact (858) 564-9310 for more information about these different bankruptcy chapters.