Can You File Bankruptcy Twice?

Declaring bankruptcy is a stressful process wherein you admit that you have too much debt and can no longer repay your creditors the money that you owe them.  Most people do not ever want to declare bankruptcy even one time, but sometimes circumstances beyond their control mean that, even after a first bankruptcy, there are financial problems that persist that mean they cannot continue to pay their bills as agreed.  When this happens, what are your options?  Can you file bankruptcy twice?  If so, what is the process for declaring a second bankruptcy, and what are the rules that govern whether or not you will be able to declare bankruptcy twice?

Filing Bankruptcy Twice

The short answer to the question of whether or not you can declare bankruptcy twice is yes, you can.  However, there are restrictions.

• For example, if you have declared a Chapter 7, or total liquidation bankruptcy, and it has been approved, gone through the courts, and your debts have been discharged as a result, you are prohibited from filing another bankruptcy for a period of not less than eight years.  This means that you must try to revitalize your finances and make better choices regarding your spending as soon as possible after an initial bankruptcy filing, since the safety net of bankruptcy is denied to you for this period.

• If, however, you filed a Chapter 13 bankruptcy, which is a type of bankruptcy that allows you to discharge some of your debts while repaying other portions of your debts, and you find that you cannot complete the Chapter 13 bankruptcy repayment plan for some reason, you do not have to wait eight years to file a Chapter 7 bankruptcy.  As long as you have paid your creditors at least 70% of what you owed them as a result of the decision made in your Chapter 13 bankruptcy, you can declare a Chapter 7 or total bankruptcy afterwards without having to go through the eight year waiting period.

The bankruptcy courts will always take into account the fact that you have had bankruptcies previously when examining any new bankruptcy case that you may bring to them, so you will want to be sure that you make the best possible financial choices to avoid declaring bankruptcy a second time if you have already declared once.  However, you can declare a second time if you meet the criteria and follow the rules for declaring bankruptcy twice.

Getting Help

If you need to file a second bankruptcy, it is imperative you consult with an experienced bankruptcy attorney. Your lawyer can explain to you what options you have for filing the second bankruptcy and can assist you throughout the filing process.