Can You File Bankruptcy More Than Once?
Although it is possible to file for bankruptcy more than once in Pennsylvania (or any state, for that matter), there are varying waiting periods based on the type of bankruptcy for which you are filing. The statutory waiting periods are based on when you filed your initial bankruptcy petition. If your case was dismissed without a discharge, you can skip the waiting period, but other issues may arise with multiple filings.
At Cunningham, Chernicoff & Warshawsky, we understand that unforeseen circumstances can result in a bankruptcy filing. If you find yourself in financial distress, even after a prior bankruptcy filing, our Harrisburg, PA, bankruptcy attorneys are here to provide you with the legal guidance you need.
Bankruptcy Filings and Discharges
While there is no set number of times you can file for bankruptcy, there are restrictions on how long you must wait before filing for bankruptcy again if you desire a discharge. A bankruptcy discharge is a permanent order releasing a debtor from liability, prohibiting creditors from taking further action.
The timing of the discharge will depend on the type of bankruptcy you filed, with Chapter 7 discharges typically being granted 60 to 90 days after the date set for the 341 meeting (mandatory meeting at the beginning of a bankruptcy filing). Comparatively, Chapter 13 discharges are usually granted after the debtor completes the payments agreed upon under the plan.
Waiting Period to File Chapter 7 Bankruptcy
The Federal Bankruptcy Code requires a debtor to wait eight years after filing Chapter 7 to refile under the same Chapter. The timelines are based on the date that your bankruptcy petition is filed with the court, not the date of the discharge. Be aware that the timeframes differ slightly if switching between Chapters. If your debt is discharged under Chapter 13, you will have to wait six years to refile under Chapter 7.
However, 11 U.S. Code §727(a)(9) allows a debtor to bypass the six-year waiting period if you paid 100% of the unsecured claims in your previous Chapter 13 filing or at least 70% of your debt in good faith.
Waiting Period to File Chapter 13 Bankruptcy
If you are filing a second bankruptcy under Chapter 13, there is a mandatory waiting period of two years. If you receive a Chapter 7 discharge and decide to refile under Chapter 13, the waiting period is extended to four years. If you decide to file a second bankruptcy before the waiting period runs out, then you will be barred from receiving a discharge in the new case. Although there are certain benefits to filing without a discharge, you should speak with a Harrisburg, PA, bankruptcy lawyer before taking any action.
Complications of Multiple Bankruptcy Filings
An automatic stay provides protection from creditors once a bankruptcy petition is filed. It prevents the debtor from being sued, wages from being garnished, and property from being seized. An automatic stay can temporarily halt foreclosure proceedings or repossession of your vehicle, which can be especially helpful when a person is attempting to cure delinquent mortgage payments by reorganizing their debt under Chapter 13.
Generally, it lasts until you receive a discharge or your case is dismissed. However, if you refile for bankruptcy within the same year, the automatic stay will only last 30 days. You could request a bankruptcy attorney to request an extension of the automatic stay, which they often do in these situations.
In the case of multiple filings, the court may dismiss your case if it finds that the filings are made in “bad faith.” Bad-faith filings occur when someone applies for bankruptcy as a way to manipulate the system and avoid paying creditors. A bad-faith filing is any behavior that is seen to defraud the system, which may include hiding assets, refiling each time a foreclosure sale date is scheduled on your home, or frivolous spending with no indication that you intend to pay back debt. A bad-faith filing can cause more damage than simply having your case dismissed, potentially resulting in criminal charges.
Drowning in Debt? Speak with Our Harrisburg, PA, Bankruptcy Attorneys Today
While multiple bankruptcy filings are permitted in the Commonwealth, you need to have a strategic plan when filing for bankruptcy. The Harrisburg, PA, bankruptcy lawyers at Cunningham, Chernicoff & Warshawsky understand the anxiety that accompanies financial issues. While many people view themselves as a failure to file bankruptcy, we see it to regroup and move forward, making substantial changes. If you are currently in need of financial relief, our legal team would like to speak with you. To schedule a meeting with an attorney, we can be reached online or by calling (717) 260-3527.