Can You File Bankruptcy Multiple Times?
If you are struggling with debt that has become unmanageable, filing bankruptcy can provide you with a clean financial slate and a new start. However, getting your debt discharged or reorganized into a repayment plan that makes it easier to manage does not guarantee that you will not fall into financial trouble again at some point in the future. If this happens, you may wonder if you can file bankruptcy again.
In Florida, there is no limit on the number of times you can file bankruptcy. There are time limits, though, governing when you can file again. Below, our Florida bankruptcy lawyer explains in further detail.
Wait Times for Filing Subsequent Bankruptcies
Although you can file bankruptcy again after filing in the past, there will likely be a waiting period. The duration of this waiting period depends on the type of bankruptcy you filed in the past and the outcome of your case.
If your debt was previously discharged in a Chapter 7 bankruptcy, you are required to wait eight years from the date you previously filed before filing again. If you have recently filed Chapter 7 bankruptcy, you can file Chapter 13 bankruptcy right away and will not have to wait at all. Chapter 13 allows you to restructure your debt.
If your debt was discharged in Chapter 13 filing, the waiting period is two years from the date of your previous filing if you want to file Chapter 13 again. A Chapter 13 bankruptcy takes anywhere between three and five years to complete, meaning after filers have received their discharge, they are usually immediately eligible to file again.
There is no waiting period if you want to file Chapter 7 after receiving a discharge in Chapter 13 if you repaid all of the claims as part of the Chapter 13 case. You may also be able to file Chapter 7 immediately if the court determines that you made a good faith effort to repay the debt according to the plan and repaid a minimum of 70 percent of the debt. If less than 70 percent of the debt was repaid in the Chapter 13 bankruptcy, you may have to wait six years before filing Chapter 7.
The Automatic Stay in Multiple Bankruptcy Cases
The automatic stay prevents creditors and debt collectors from trying to recover debt while your bankruptcy case is ongoing. If you file Chapter 13 bankruptcy twice within one year’s time, the automatic stay is only effective for 30 days. If you file Chapter 13 more than twice within one year, there is no automatic stay. In both of these situations, you may be able to file a Motion to Extend the Automatic Stay.
Our Bankruptcy Lawyers in Florida Can Determine if You are Eligible
If you have filed bankruptcy in the past and now require additional relief, it is important to speak to a Florida bankruptcy lawyer. At Nowack & Olson, PLLC, our experienced attorneys can determine if you are eligible and guide you through the process so you obtain the most successful outcome possible. Contact us to schedule a consultation.
Sources:
uscourts.gov/court-programs/bankruptcy/bankruptcy-basics
floridabar.org/the-florida-bar-journal/dicing-it-up-does-a-sliver-of-the-automatic-stay-remain-for-repeat-debtors/
