Filing for bankruptcy is a form of financial reset. You can immediately stop aggressive collection activity and also discharge some of your debts, allowing you to establish a more streamlined and manageable household budget. Many people who file for bankruptcy are able to effectively correct their circumstances and regain control of their household finances.
They no longer have to choose between what bills they pay each month or worry about losing their home or vehicle to collection efforts. However, when bankruptcy is a result of underlying issues, like a bad local employment market or health problems that affect your income, you may find yourself continuing to struggle even after your discharge. There are some lenders who intentionally offer lines of credit to people who have recently filed for bankruptcy.
If you find yourself struggling with debt again, are you out of luck because bankruptcy is a once-in-a-lifetime solution?
People can file for bankruptcy as often as they qualify
Although repeatedly filing for bankruptcy is likely a sign that someone needs more support correcting their financial issues, anyone who has previously discharged debts in a successful bankruptcy can qualify to file again after waiting a set number of years.
How long you have to wait to file for bankruptcy again depends on the kind of bankruptcy you select each time. If you received a discharge from a Chapter 7 filing, you need to wait eight years to file Chapter 7 bankruptcy again and four years to file Chapter 13 bankruptcy. If you previously filed a Chapter 13 bankruptcy, you need to wait six years to file a Chapter 7 bankruptcy or two years to file another Chapter 13 bankruptcy.
If the bankruptcy filing was not successful and did not lead to a discharge, there will be no wait. You simply need to gather the right documentation and secure the appropriate help to file again, hopefully successfully this time.
The right support can make all the difference. If you previously filed for bankruptcy and now find yourself struggling financially again, that may be a sign that you need more support this second time. Educating yourself more about your rights as someone who owes money and as someone filing for bankruptcy could help you finally regain control over your finances and stop the cycle of debt.