petition for bankruptcy

Can You File for Bankruptcy Again?

When you find yourself in a serious situation in which your debts far exceed your financial ability to pay them, bankruptcy may be an option. But while this is not an easy decision to file for it, it is available to you. But what happens when you need to file again? Are you allowed to file for bankruptcy again? Here’s the goods news: yes, you can. 

What you may find surprising is that there is no limit to the number of times that you are permitted to file for bankruptcy. There is a limit, however, to the amount of time that must pass in between filing. 

How Much Time Must Pass in Between Filing?

The amount of time that must pass between filing for bankruptcy a second time depends upon which type of bankruptcy you are filing for and which type of bankruptcy for which you have previously filed. 

If you have previously filed for:

  • Chapter 7 and you are filing for Chapter 7 again you must wait at least 8 years.
  • Chapter 7 but you are filing for Chapter 13 you must wait at least four years.
  • Chapter 13 and you are filing for Chapter 13 again you must wait at least 2 years.
  • Chapter 13 but you are filing for Chapter 7 you must wait at least six years unless you:
    • Have already paid off your previous Chapter 13 debts; or
    • Have paid off 70 percent of all unsecured debts and your plan was in good faith.

Is It More Difficult to File a Second Time?

The difficulty of filing for a second time is dependent upon whether your first case was dismissed with prejudice and the specific reason that it was dismissed.

If your previous bankruptcy filing was dismissed with prejudice, it can be a little bit harder the second time that you file. But why would it have been dismissed with prejudice? There are a variety of reasons:

  • You hid some of your assets
  • You disobeyed the court’s orders
  • You delayed payment of creditors
  • A creditor prepared a motion for relief from the automatic stay

While individuals are usually barred from filing again when they have done something to abuse the system, ultimately the decision as to whether you are allowed to do so is left up to the discretion of the judge. 

Toronjo & Prosser Law Helps Those Who Are Dealing with Bankruptcy 

It’s undoubtedly stressful to realize that you don’t have enough money, and even more stressful when you realize that filing for bankruptcy may be your best option. That’s why it’s so important to consult with a knowledgeable and experienced Dallas bankruptcy attorney. At Toronjo & Prosser, our qualified Texas Bankruptcy Attorneys can help you to navigate the process. To learn more or to schedule a free consultation, contact us online or call us today!