Can You File Chapter 7 or Chapter 13 Bankruptcy More Than Once?

While recent reports indicate that the economy has improved, there remain many Connecticut residents and others around the country that continue to struggle to pay their bills each month. While certainly not the first course of action, some consumers make the decision to file for either Chapter 7 or Chapter 13 bankruptcy. Having the “clean slate” that bankruptcy often provides gives the impetus to get one’s finances in order. However, things do not always go as hoped and some individuals may be wondering if they could actually file for bankruptcy a second time.

According to the U.S. Bankruptcy Code, a person may file bankruptcy a second time. It actually depends on what type of bankruptcy was filed to determine how long a person has to wait to do it again. With a Chapter 7 bankruptcy, someone’s eligible debts are discharged. With this type, eight years must pass before another Chapter 7 bankruptcy could be filed.

In a Chapter 13 bankruptcy, where debt is restructured, a person could file for one again after only two years. If someone had filed for Chapter 7 earlier, he or she could file for Chapter 13 after four years. On the other hand, a previous Chapter 13 filing would require a person to wait six years before a subsequent Chapter 7 filing.

It is important to consider all the ramifications for filing for Chapter 7 or Chapter 13 bankruptcy. A Connecticut attorney can help consumers determine the best course of action. An experienced lawyer will work with clients to help them get their finances back in order.