Can You File for Bankruptcy if You Have a Previous Bankruptcy
Many people assume that once they have filed for bankruptcy, they are permanently barred from seeking relief again. In reality, the bankruptcy laws recognize that financial hardship can strike more than once. Whether due to job loss, medical issues, divorce, or unexpected expenses, it is possible to face serious debt problems even after receiving a prior bankruptcy discharge or having a case dismissed. The key question is not whether you can file again, but when you are eligible and which chapter may be available to you.
If you are considering a second bankruptcy in Goshen/Orange County, or White Plains/Westchester County, an experienced and dedicated bankruptcy lawyer at the Law Office of Taran M. Provost, PLLC, can help you understand how timing rules, prior discharges, and case outcomes affect your options.
Filing Chapter 7 After a Previous Chapter 7 Bankruptcy
If you previously received a Chapter 7 discharge, you may be eligible to file another Chapter 7 case, but only after a waiting period. Under federal bankruptcy law, a debtor must wait eight years from the filing date of the prior Chapter 7 case before receiving another Chapter 7 discharge.
This does not mean you are prohibited from filing sooner, but filing before the eight-year period expires would result in a case where no discharge is available, which is rarely beneficial. For most individuals, the practical consideration is whether enough time has passed to make a new Chapter 7 filing worthwhile.
When the waiting period has passed, a second Chapter 7 case is treated much like the first. However, trustees and creditors may scrutinize repeat filings more closely, making accuracy and transparency in your financial disclosures especially important.
Filing Chapter 7 After a Previous Chapter 13 Bankruptcy
It is also possible to file Chapter 7 after completing a Chapter 13 case; here, the waiting period is shorter. In most situations, a debtor may receive a Chapter 7 discharge four years after filing the prior Chapter 13 case.
In some cases, the waiting period may not apply at all. If you paid at least 70 percent of your unsecured debts in the Chapter 13 plan, proposed the plan in good faith, and completed all required payments, you may be eligible to file Chapter 7 without waiting the full four years. These circumstances are less common, but they highlight the importance of reviewing the details of your prior case with an experienced bankruptcy attorney.
Filing Chapter 7 after Chapter 13 is sometimes referred to as a “Chapter 20” strategy, though it is not a formal chapter of bankruptcy. This approach may be used when a debtor completes a repayment plan but still needs relief from remaining unsecured debt.
Filing Chapter 13 After a Previous Chapter 7 Bankruptcy
Many debtors choose to file Chapter 13 after a Chapter 7 discharge, particularly if they are dealing with mortgage arrears, car loan defaults, or tax debt that was not eliminated in the Chapter 7 case. The waiting period to receive a Chapter 13 discharge after a Chapter 7 filing is four years from the date the Chapter 7 case was filed.
Even if you are not eligible for a Chapter 13 discharge due to timing, filing may still provide significant benefits. A Chapter 13 case can stop foreclosure, prevent repossession, and allow you to repay certain debts over time under court protection. In these situations, the value of Chapter 13 lies in the automatic stay and structured repayment plan rather than the discharge itself.
Filing Chapter 13 After a Previous Chapter 13 Bankruptcy
If you previously received a Chapter 13 discharge, you must generally wait two years from the filing date of the prior case to receive another Chapter 13 discharge. Because most Chapter 13 plans last three to five years, many debtors automatically satisfy this requirement by the time their case is completed.
Repeat Chapter 13 filings are not uncommon, especially when a debtor successfully completed a plan but later encountered new financial difficulties. Courts will typically look at whether the new filing is made in good faith and whether the proposed repayment plan is realistic based on your current income and expenses.
Filing After a Bankruptcy Case Was Dismissed
A prior bankruptcy case that was dismissed rather than discharged is treated differently under the law. In many situations, you may be able to refile immediately after a dismissal. However, important limitations may apply.
If your case was dismissed for failure to file required documents, attend the 341 Meeting of Creditors, or make plan payments, the court may impose restrictions on refiling. In some cases, a waiting period of 180 days applies, particularly if the dismissal involved willful failure to comply with court orders.
Additionally, repeat filings within a short period can limit the protection of the automatic stay. If you file a new case within one year of a dismissal, the automatic stay may last only 30 days unless extended by court order. If two or more cases were dismissed within the prior year, the automatic stay may not go into effect at all without affirmative court approval.
Other Important Issues to Consider
Filing for bankruptcy more than once often involves heightened scrutiny from the trustee and the court. Repeat filers must demonstrate good faith, meaning the case is filed for legitimate financial reasons rather than to delay creditors. Full disclosure of assets, income, and prior bankruptcy history is critical.
Exemptions, eligibility under the means test, and changes in income or debt structure since your last filing can all affect which chapter is available to you. State and federal laws may also change over time, making it risky to assume that the same strategy used in a prior case will still apply.
Get Guidance Before Filing Again
A prior bankruptcy does not necessarily close the door on future relief, but it does make the process more complex. At the Law Office of Taran M. Provost, PLLC, we help clients throughout Orange and Westchester counties evaluate their bankruptcy history, understand waiting periods, and determine the most effective path forward.
If you are struggling with debt again and wondering whether bankruptcy is an option, contact us for a free consultation over the phone or at one of our offices in Goshen or White Plains. With knowledgeable guidance and careful planning, a second bankruptcy filing may provide the fresh start you need.
