Bankruptcy Myth 8 - You can only File Bankruptcy Once

This is another line that bill collectors use to scare people. Actually, you can file bankruptcy countless times if you wanted to. Doing so would likely get you in trouble with the United States government, so that’s probably a bad idea. When people talk about only getting to “file” bankruptcy once, they are probably speaking of the myth that you only get to discharge your debts once.


The goal of many bankruptcies is to receive a discharge of your debts. The discharge comes at the completion of a successful chapter 7 or chapter 13. It is essentially a court order that says you are no longer obligated on most of your debts (to see what usually gets discharged and what usually does not get discharged).


There is a time limit to how often you can receive a discharge. If you received a discharge in a chapter 7 bankruptcy, you cannot receive another discharge for at least 8 years from the day you filed your chapter 7. So, say you successfully completed chapter 7 in 2005. If the case was filed on March 1, 2005, you cannot receive another discharge in a chapter 7 unless you wait until at least March 1, 2013 to file.


Chapter 13 time limits are different and can be complicated. It’s our job to help you figure this out in a face to face bankruptcy consultation if you received a discharge in a prior bankruptcy and hope to receive a discharge in a subsequent chapter 13. When you have a prior discharge in bankruptcy and hope to receive a discharge in a chapter 13, you have to consider what type of discharge you received in the prior bankruptcy. If you received a discharge under chapter 7, 11, or 12, you have to wait four years from the date the prior case was filed if you hope to get a discharge in a subsequent chapter 13. So, if you filed chapter 7 on March 1, 2005, and hoped to get a discharge in a subsequent chapter 13, you would have had to wait until March 1, 2009 to file the chapter 13.


If you received a discharge in a chapter 13, the calculation of time has to do with the date of discharge, NOT the date of the filing of the bankruptcy. If you hope to get a chapter 13 discharge in a subsequent bankruptcy, you must wait 2 years from the date you received the discharge in the prior chapter 13. So, if you filed chapter 13 on March 1, 2005 and received a discharge on March 1, 2010, you would need to wait until March 1, 2012 before you could file chapter 13 and receive another discharge.


Note that there are times where it makes sense for people to file chapter 13 even if they are not going to receive a discharge. The most common examples are using chapter 13 to stop a home foreclosure or car repossessions.


Read the full 8 part series of Bankruptcy Myths:

1. Bankruptcy Myth 1 - You Will Never Get Credit or Own Anything Again
2. Bankruptcy Myth 2 - The World Will Know You Filed
3. Bankruptcy Myth 3 - You Will Lose All That You Own
4. Bankruptcy Myth 4 - If you are married, both you and your spouse must file
5. Bankruptcy Myth 5 - Filing for bankruptcy means you are a bad person
6. Bankruptcy Myth 6 - Filing Bankruptcy Hurts Your Credit Score Forever
7. Bankruptcy Myth 7 - After Bankruptcy Creditors will Continue to Harass
8. Bankruptcy Myth 8 - You can only File Bankruptcy Once

If you are being threatened with foreclosure or need help dealing with creditors, we are here to protect your rights. We offer a free confidential no-obligation consultation to discuss your personal situation. Please call (713) 961-9477 for immediate assistance or feel free to use our form below.