If you have already filed for personal bankruptcy before and are again at the point where you cannot pay your debts, you may wonder whether you can submit a Chapter 7 filing.
The short answer is yes, it is possible to file for bankruptcy numerous times. However, there are restrictions around doing so.
A sufficient time gap is required
The law mandates specific time periods between one filing and another. If you previously filed for Chapter 7, you cannot do so again until at least eight years have passed. After that, you can submit your application. You still must meet the other requirements, such as the means test, which you will need to pass again.
If, however, your previous filing was a Chapter 13 bankruptcy, you are able to submit your Chapter 7 application sooner. It will depend on how that previous bankruptcy went. If you paid back 100% of the claims against you, then there is no minimum period to wait.
The same is true if you paid back at least 70% of those claims and ”the Chapter 13 Plan was proposed in good faith and was the debtor’s best effort,” according to the Bankruptcy Code. If you did not manage to repay at least 70%, then there is a mandatory waiting period of 6 years before you can file for Chapter 7.
As you can see, bankruptcy filings are not straightforward, but then neither is continuing on with debts you cannot repay. Getting experienced legal guidance to learn more about your options can help you understand how best to proceed.