How Often Can You File for Bankruptcy?

Filing for bankruptcy is something many people do. They may have medical bills or have experienced other problems that keep them from paying off their debts. But when they file, they also need to remember that they can’t just keep submitting bankruptcy applications. There are limits on how frequently a person can file for bankruptcy, and that can also depend on the kind of bankruptcy protection they’re seeking. Here are some of the most important things to understand about bankruptcy filings.

Bankruptcy is a Serious Financial Decision

Choosing to file for bankruptcy is a serious decision to make. It can significantly lower a person’s credit score for years and make it harder for them to get a loan or a credit card. But there are times when it’s still the best decision, mostly because people with significant financial problems may not be able to dig themselves out any other way. Bankruptcy can give them a fresh start and help them decide on their next steps in a way that doesn’t have them struggling.

Filing Times Depend on the Bankruptcy Type

Generally, you can file for bankruptcy every eight years if you file for Chapter 7 bankruptcy protection. If you’re filing a Chapter 13 bankruptcy, you must wait at least six years after receiving the initial discharge in your previous Chapter 13. Which one is the right option to file? That depends on your specific needs and situation. You may find that one type of bankruptcy would be much better for you than another, and a bankruptcy attorney can help you make that decision.

A Chapter 7 bankruptcy is for creating a clean slate by wiping out a person’s debts. Some can’t be removed, like certain types of student loan debt. But almost every kind of debt that a person accumulates can be removed through a Chapter 7 bankruptcy. This can be very helpful to people who’ve fallen on hard times and don’t have any way to pay back their debts. It gives them a new start and stops the collection calls and other stressful events in their life.

What is a Chapter 13 Bankruptcy?

Chapter 13 bankruptcy protection is more of a reorganization. It can come with debt reduction and settlement, as well. For the most part, it’s for people who have trouble paying their debt at the current level and interest rate but can still pay the debt if given some new options or better terms. They’ll have to pay off at least an agreed-upon portion of the amounts they owe, but they’ll generally have more time to do it, and the rate of interest will be much better, as well.

Working With an Attorney Can Help

Do you need consultation for a bankruptcy filing? We can help you make the right financial decision for your future. Contact us today at SM Law Group APC for a free bankruptcy consultation.