Most people do not want to file for bankruptcy at all in their life, let alone more than once. However, it is the unfortunate reality that life is unpredictable and many people struggle with their finances. They may experience unemployment, serious injuries or illnesses, divorce, the loss of a loved one’s income, a struggling business, and more. When this happens and a person faces a difficult financial situation, they may need to file for bankruptcy for assistance. While it seems intimidating, the process exists to help debtors during a time of need and provide them with a hopeful financial future.
Can I File More Than Once?
When debtors bounce back from struggling with their finances and filing bankruptcy, they do not imagine they would ever find themselves in the situation again. However, it is possible. If this is the case, it is important to know that there is no limit on the number of times a person can file for bankruptcy in the state of New York. Bankruptcy can be filed as many times a debtor needs as long as they are doing so legally.
Bankruptcy Discharge Limitations
People file for bankruptcy with the hope that it can help them create a better financial future for themselves. Part of doing so is receiving a bankruptcy discharge. This relieves a debtor of their responsibility to pay off certain debts. This can include medical bills, credit card debt, past due utility bills, personal loans, lawsuit judgments, and obligations under leases and contracts. In addition to this, creditors are no longer able to try and collect these debts.
It is important to know while the Bankruptcy Code does not limit the number of times you can file for bankruptcy, it does limit the number of bankruptcy charges a debtor can receive within a certain amount of time. These limitations include:
- Filing a new Chapter 13 case after a previous Chapter 13 case requires two years between filing dates to receive a discharge
- Filing a Chapter 7 case after a previous Chapter 13 case requires four years between filing dates to receive a discharge
- Filing a Chapter 7 case after previously filing a Chapter 13 case requires six years between filing dates to receive a discharge
- Filing a new Chapter 7 case after a previous Chapter 7 case requires eight years between filing dates to receive a discharge
There are circumstances under which exceptions can be made to these rules when filing for bankruptcy more than once. This is why it is important to have an experienced attorney on your team when facing bankruptcy.
Contact our Firm
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.