If you’re thinking about filing for bankruptcy and you’ve already filed it once before, we want you to know that this is not uncommon. Sometimes people get into a financial bind for reasons beyond their control and they turn to bankruptcy for a much-needed fresh start. Or in this case, a second fresh start, and that is completely understandable.
Circumstances that Lead to the Need to File for Bankruptcy Again
As York and Harrisburg bankruptcy attorneys, we can attest that most people do not file for bankruptcy twice because they have bad spending habits or no respect for their lenders. Quite the contrary.
In fact, people usually file for bankruptcy one or more times because:
- They lost a job
- Their hours were cut
- Their wages were reduced
- They got a divorce
- Their business went under
- There was an accident or illness in the family
If you’ll notice, running up credit card debt was not on the list as a “cause” for bankruptcy. That’s because most people don’t file for bankruptcy twice because they planned to. However, when debtors do end up resorting to bankruptcy a second or third time in their life, they’re glad it was there to help bail them out.
Filing Chapter 7 & 13 Again
Can you file Chapter 7 and 13 more than once? Yes! However, there is a time limit that applies. If you received a Chapter 7 discharge, you cannot receive a discharge in a second Chapter 7 case until it’s been eight years since the first case was filed.
Debtors can file a Chapter 13 again, but same with the Chapter 7, time limits apply. To receive a discharge in a second Chapter 13 case, two years must have lapsed since filing the first Chapter 13 case. This can be a bit tricky if you file your second Chapter 13 two to six years from your first Chapter 13 and the court doesn’t accept your Chapter 13 repayment plan in the second case. If that happens, it’s possible to convert your Chapter 13 to a Chapter 7, providing you meet the specified time limits for filing – and we can explain these to you in further detail.
If you didn’t receive a discharge in the first bankruptcy case, then different rules apply. Usually, you can go ahead and file the second bankruptcy case without having to wait.
Contact a Harrisburg Bankruptcy Lawyer Today!
There’s no shame in filing for bankruptcy protection more than once. Often, the only real issue is failing to file for bankruptcy when doing so would help your situation dramatically. To learn more about your options, contact a bankruptcy lawyer from Dethlefs Pykosh & Murphy today!