How Many Times Can You File For Bankruptcy?

The Bankruptcy Code does not limit how many times or how often a debtor can file for bankruptcy relief. However the Code does limit how often a debtor can discharge debt in a bankruptcy case. Whether or not this limitation applies to a specific debtor depends on under which chapter the first and second cases were filed.

Debtors who receive a discharge under Chapter 7 of the Bankruptcy Code cannot receive this same relief for eight years in a subsequent Chapter 7 case and for four years in a subsequent Chapter 13 case. Debtors who receive a discharge under Chapter 13 of the Bankruptcy Code cannot discharge debt for six years in a subsequent Chapter 7 case and for two years in a subsequent Chapter 13 case. The time is calculated from the file date of the first case until the file date of the second case.

The time limitation prevents a debtor from obtaining a discharge but does not affect the ability to file bankruptcy. This is an important distinction because discharging debt is not the only reason to file bankruptcy. Chapter 13 cases can be used to stop repossession or foreclosure of secured property allowing the debtor an opportunity to protect their property and cure arrears in a reorganization plan. Chapter 13 cases can also prevent wage garnishment of income taxes or child support arrears. These types of debts can also be paid in the reorganization plan, possibly under better terms than if the debt was paid through garnishing the debtor's wages.