How Long Before I Can File for Bankruptcy Again?

bankruptcy

Filing for bankruptcy protection can help rescue you from financial hardship, granting you a clean slate to rebuild your credit, boost your savings and restore your financial health. But what if you run into financial trouble again? How many times can you file for bankruptcy?

How many times can you file for bankruptcy?

The good news is that you can make multiple bankruptcy filings under New York law. It means there is no limit to how many times you can file for bankruptcy protection. But that doesn’t mean you can make multiple bankruptcy filings in a single year. 

If you need bankruptcy help, we at Ursulova Law Offices can help you navigate through a complex process.

How long before you can file for bankruptcy again?

There is a waiting period before you can file again for bankruptcy protection, depending on the type of bankruptcy protection you filed for.

  • Chapter 7 bankruptcy: If you filed for Chapter 7 bankruptcy protection, where most or all of your debts are eliminated, you can’t file again for eight years. Once this period passes, you can work with us, your Brooklyn bankruptcy attorney, to refile.
  • Chapter 13 bankruptcy: In a Chapter 13 bankruptcy, you’ll work through a repayment plan that allows you to pay back all or most of your debts with monthly payments that you can afford. When you can file again for Chapter 13 protection depends on how long it takes to complete this repayment plan. It usually takes two to six years to pay off your remaining debts under a Chapter 13 bankruptcy, so you’ll need to wait at least that long before filing again for this protection.

But what if you want to file for a different type of bankruptcy protection after closing a Chapter 13 or Chapter 7 bankruptcy?

There might be different waiting periods for multiple bankruptcy filings in such situations. Again, as your bankruptcy lawyer in Brooklyn, we can help you determine how long before you can file bankruptcy again.

  • Say you filed for Chapter 13 bankruptcy but now want to file for Chapter 7 protection. You’ll most likely need to wait six years from when you originally filed for Chapter 13 protection to file again. However, this wait can be shortened if you’ve paid back all your unsecured debt or at least 70% of this debt.
  • If you originally filed for Chapter 7 bankruptcy protection and now want to file for Chapter 13, you must wait at least four years from when you originally filed for that Chapter 7 protection.

Some refer to this type of move as a Chapter 20 bankruptcy, a name that comes from adding Chapter 13 and Chapter 7 together. Under this arrangement, the courts would eliminate most or all of your unsecured debt under Chapter 7. You can then create a repayment plan under Chapter 13 to pay back secured debt, such as the money you owe on the mortgage, auto, or personal loans.

How often should you file for bankruptcy?

The bankruptcy process exists to give you a chance to recover from financial mishaps and mistakes. You should not ever feel guilty, then, about filing for it. Don’t hesitate to file if you need the financial safety net that bankruptcy protection provides.

Remember, though, that bankruptcy protection does come with a cost. Filing for bankruptcy will damage your three-digit credit score, possibly causing it to fall by 100 points or more. Bankruptcies also remain on your credit reports for up to 10 years. These are all consequences to consider. Ursulova Law Offices can help you decide when a bankruptcy filing makes financial sense.

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.

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