Bankruptcy is a scary word for most people. It’s not a place you want to go, and it also often has some pretty negative connotations. If you file bankruptcy once, does that mean you’re not allowed to again? The answer is no, but there are some restrictions involved with filing for bankruptcy twice. If you are considering filing for bankruptcy again after having done so previously, you will need to check your state laws and the terms of your previous bankruptcy in order to know if you are eligible again. Bankruptcy laws differ from state to state, so the process and eligibility requirements vary from place to place. There are also different types of bankruptcies that may make one more suitable than another for your situation. Here is what you should know about whether you can file bankruptcy twice and if so, which type might be right for you.
Can You File Bankruptcy Twice?
Yes, you can file for bankruptcy twice. However, there are some restrictions on this. First, you must be careful to meet all the eligibility requirements for a second bankruptcy. Second, bankruptcy laws vary from state to state, so you will need to make sure that you meet the requirements in your state. Finally, you must consider how filing for bankruptcy once has affected you and your reputation.
Why Can’t You File For Bankruptcy Twice?
1. You must be eligible for a second bankruptcy.
The first thing to do when you are considering filing for bankruptcy is to make sure you are eligible. You will need to check your state laws and the terms of your previous bankruptcy in order to see if you are eligible again for a second bankruptcy. If you have since changed jobs, gotten married, or had any other life changes that would make it harder for you to pay back the money that was taken from your bank account or sold off by your creditors, then it might not be a good idea to file again.
2. Your state laws may limit how many times you can file bankruptcy.
Each state has different laws regarding how many times an individual can file for bankruptcy. In some states, individuals are only allowed one chapter 7 bankruptcy, while others allow multiple bankruptcies as long as they meet certain requirements each time they file. Before filing again, it’s important that you check the rules in your state and make sure that the second time around is allowed under those rules and terms.
3. Your reputation may be affected by the previous filing.
The laws on whether or not individuals can have a second chapter 7 or another type of bankruptcy vary from state to state and even from judge to judge within states. There are some judges who will allow individuals more than one chance at filing for bankruptcy but there are others who do not care about having had a previous chapter 7 filed against them at all or who may even treat you differently because of your previous Chapter 7 filing.
4. Your credit score may be affected by the previous bankruptcy.
If you’ve had a chapter 7 filed against you before, then it will show up on your credit report for a certain period of time. Depending on how much money was taken from your bank account or sold off by creditors, this could affect your credit score negatively and make it harder to get approved for a loan in the future.
5. Your assets might have been sold off or taken away.
The second time you file for bankruptcy, the creditors who previously took something from you might not allow it to be released back to you and instead will sell it off to other creditors or even throw it out entirely. This may happen if they are not satisfied with the amount of money that was paid back and if they feel that the sale is enough to cover their losses. In some cases, they will go as far as to take all of your assets and sell them at auction so that they can get some of your money back on top of what was already taken from you previously. If this happens, then don’t worry about getting everything back; just focus on making sure that whatever assets were sold off were used in such a way that they are able to cover all costs associated with filing for bankruptcy again. Also, keep in mind that there is no guarantee that whatever has been sold off can be brought back at any point in the future.
Which Type Of Bankruptcy Might Be Right For You?
1. Chapter 13 bankruptcy
This type of bankruptcy is often the best option for people who have been late on their payments or who have not been able to pay back all of the money that they owe and have since tried to resolve the issue with their creditors. To get started with this type of bankruptcy, you will need to sign a repayment plan with your creditors. This means that you will work with them to repay the money that you owe them over a period of time instead of paying it off all at once. This also means that they are able to make some money from your paycheck as part of your payment plan which can help keep you afloat while you are working on getting back on track financially again. If you do not make enough payments, then this plan will be canceled and it will be up to you to find another way to repay what was owed before being able to file for chapter 13 bankruptcy again.
2. Chapter 7 bankruptcy
This type of bankruptcy is often better suited for people who do not want or need any type of repayment plan in place with their creditors and only want their debts wiped out completely so that they can start fresh in whatever way they see fit (whether it be by buying a new car, moving out somewhere new, etc.) To get started with chapter 7, there is no repayment plan needed, but this does mean that if your financial situation does change and if there are other debts added onto what was already owed, then there may be additional fees associated with filing for Chapter 7 bankruptcy.
3. Chapter 11 bankruptcy
This type of bankruptcy is also best suited for people who do not have to repay any amounts owed to creditors and only have their debts wiped out so that they can be in a position to start over and make new plans for their life again. Unlike chapter 13, there is no repayment plan in place with this type of bankruptcy; however, if you do not pay what you owe by the date on which your case will be closed, then you will need to file another case. This means that it is important to keep track of what is owed and when it needs to be paid off as well as be aware of how much money you can afford to spend each month before being able to file for chapter 11 bankruptcy again.
4. Chapter 7 & 13 Bankruptcy
This type of bankruptcy may be better suited for people who want both the debts that they owe eliminated along with having the ability to start over again financially since there are repayment plans in place with these types of bankruptcies while they are still open. If you have been late on your payments or if there are other debts added onto what you owe, then this type of bankruptcy may not work out well since there will likely be additional fees associated with filing for both chapters at once as well as being told that either one will need to wait longer than usual because both cases need time before being able to close so that all required paperwork can be filed and all required documents are received.
5. Chapter 11 & 13 Bankruptcy.
This type of bankruptcy is definitely best suited for people who want to both have their debts eliminated along with having the ability to start over again financially since there are repayment plans in place with these types of bankruptcies while they are still open. If you have been late on your payments or if there are other debts added onto what you owe, then this type of bankruptcy may not work out well since there will likely be additional fees associated with filing for both chapters at once as well as being told that either one will need to wait longer than usual because both cases need time before being able to close so that all required paperwork can be filed and all required documents are received.
How To Know If You Are Eligible For A Second Bankruptcy?
1) If you are paying more than 50% of your income toward your debt, then you may be eligible for a second bankruptcy. In order to determine if this is the case, you will need to have a budget that includes all of the monthly expenses that you have as well as the amount of money that you make each month. You should also calculate how much money you currently owe and divide this number by half. If this number is greater than 50%, then you may be eligible for second bankruptcy in order to eliminate the debts that are left over after having applied the first bankruptcy to any debts under $1,000,000 in value.
2) If there are other debts added onto what you owe after having filed for chapter 7 or 13 bankruptcy, then you may also be eligible for a second bankruptcy since these cases can be reopened and discharged once again if necessary. You should consider speaking with an attorney or contacting one of our local offices if there has been any additional debt added onto what was already owed before filing for either type of bankruptcy since this could affect whether or not it is possible to file both chapters at once again.
3) If during either chapter 7 or 13 bankruptcy proceedings there was any fraud involved with the filing process along with any other type of wrongdoing on your part (such as lying on documents), then this could affect whether or not it is possible to file both chapters at once again. If this is the case, then it would be best to speak with an attorney.
FAQs:
Q: Is there a fee to apply for bankruptcy?
Yes, there is a fee to file for bankruptcy unless otherwise specified in your state’s laws. In some states the filing fee is waived if you are unable to pay all of your debts; in others, the filing fee may be waived if you are unemployed or receiving public assistance, and in still other states the fee is waived if you are at least 65 years old. If you owe over $1,000,000 and do not qualify for either of these waivers, then you will need to pay a filing fee of $335 or more.
Q: What is the difference between a Chapter 7 and Chapter 13 bankruptcy?
The primary difference between a Chapter 7 and a Chapter 13 bankruptcy is that with a Chapter 13 bankruptcy you will have to make payments to creditors over the course of three to five years in exchange for lower interest rates. A second difference is that with a Chapter 13 bankruptcy, you will be able to keep your car or other valuable property while it is being sold by your creditors during the repayment period. There are additional differences as well but these are the most important.
Q: What are my options if I cannot pay my debts?
If you cannot pay all of your debts, then one option may be to file for either Chapter 7 or chapter 13 bankruptcy in order to make some payments on some of the debts which were not paid during the last filing period. Another option may be to seek out an attorney who has experience in dealing with these types of scenarios since they will know how best to deal with them from their own personal experience as well as from what they have read about different types of cases from other attorneys and clients that they have dealt with over time.
