Can You File for Bankruptcy Twice? Understanding Repeat Filings

Bankruptcy is a legal process designed to help individuals and businesses manage overwhelming debt and achieve a fresh financial start. However, life is unpredictable, and even after successfully discharging debt through bankruptcy, some individuals may find themselves facing financial difficulties again.

This raises an important question: Can you file for bankruptcy twice?

The answer is yes, but the rules and timeframes for repeat filings are complex and vary depending on the type of bankruptcy previously filed and the type of bankruptcy you wish to file now.

This article explores the rules for multiple bankruptcy filings, focusing on Utah’s bankruptcy laws, and provides recent statistics to contextualize the issue.

 

Understanding Bankruptcy Filings: Chapter 7 and Chapter 13

The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” allows for the discharge of unsecured debts like credit card debt and medical bills.

Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy that involves creating a repayment plan to pay back a portion of debts over three to five years.

The ability to file for bankruptcy a second time depends on which chapter you previously filed under and which chapter you intend to file under now. The Bankruptcy Code imposes waiting periods between filings to prevent abuse of the system and to ensure that bankruptcy remains a last resort for debt relief.

 

Timeframes for Repeat Bankruptcy Filings

The waiting periods between bankruptcy filings are strictly enforced. These timeframes are designed to give debtors time to recover financially and to prevent the system from being overwhelmed by repeat filers.

Below are the key rules for repeat filings:

  1. Filing Chapter 7 After a Previous Chapter 7
    If you previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of the prior filing before you can file for Chapter 7 again and receive another discharge. This eight-year rule is intended to discourage frequent use of Chapter 7 bankruptcy, which offers a relatively quick discharge of debts.
  2. Filing Chapter 13 After a Previous Chapter 7
    If you previously filed for Chapter 7 bankruptcy, you can file for Chapter 13 bankruptcy after four years from the date of the Chapter 7 filing. However, if you want to receive a discharge in the Chapter 13 case, you must wait six years from the date of the Chapter 7 filing unless you paid all unsecured creditors in full in the Chapter 13 case or received a hardship discharge.
  3. Filing Chapter 7 After a Previous Chapter 13
    If you previously filed for Chapter 13 bankruptcy and received a discharge, you must wait six years from the date of the Chapter 13 filing before you can file for Chapter 7 and receive a discharge. However, this waiting period may be reduced to four years if you paid all unsecured creditors in full in the Chapter 13 case or if you paid at least 70% of your debts and the repayment plan was proposed in good faith.
  4. Filing Chapter 13 After a Previous Chapter 13
    If you previously filed for Chapter 13 bankruptcy, you can file for Chapter 13 again after two years from the date of the prior filing. There is no waiting period to file a new Chapter 13 case if you did not receive a discharge in the previous case.

 

 

Special Considerations for Repeat Filings in Utah

Utah follows the federal bankruptcy laws outlined above, but there are some state-specific considerations to keep in mind.

For example, Utah has its own set of bankruptcy exemptions that determine what property you can keep during bankruptcy. These exemptions may influence your decision to file for bankruptcy again, as they can affect the amount of assets you retain.

Additionally, Utah’s median income levels, which are used to determine eligibility for Chapter 7 bankruptcy, may impact your ability to file. If your income has changed significantly since your last filing, you may need to reassess your eligibility under the means test.

 

Recent Statistics on Bankruptcy Filings

Bankruptcy filings have fluctuated in recent years due to economic conditions, changes in bankruptcy laws, and the impact of the COVID-19 pandemic. According to the United States Courts, there were 387,721 bankruptcy filings in the U.S. in 2022, a slight decrease from the previous year.

In Utah, bankruptcy filings have seen an increase recently, with 5,660 filings in 2023 compared to 6,657 in 2024, marking a 17.6% increase.

For more detailed statistics, you can visit the U.S. Courts website: Bankruptcy Filings Statistics.

 

The Impact of Repeat Filings on Credit and Financial Health

Filing for bankruptcy multiple times can have a significant impact on your credit score and overall financial health. Each bankruptcy filing remains on your credit report for up to 10 years, and multiple filings can make it difficult to obtain credit, secure loans, or even rent a home.

However, for individuals facing insurmountable debt, the benefits of bankruptcy may outweigh the long-term consequences.

It’s important to consult with a qualified bankruptcy attorney before filing for bankruptcy a second time. An attorney can help you navigate the complex rules, determine the best course of action, and ensure that you meet all legal requirements.

 

Summing It Up

Filing for bankruptcy twice is possible, but it comes with specific rules and waiting periods that vary depending on the type of bankruptcy previously filed and the type of bankruptcy you intend to file now.

In Utah, as in other states, these rules are designed to balance the need for debt relief with the need to prevent abuse of the bankruptcy system.

If you are considering a repeat bankruptcy filing, it is crucial to understand the timeframes, eligibility requirements, and potential consequences. Consulting with a knowledgeable bankruptcy attorney can help you make informed decisions and achieve the best possible outcome for your financial future.

 

Learn More

At Blue Bee Bankruptcy, our lawyers are highly experienced in bankruptcy options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.

We strive to help our clients rebuild their lives and take steps toward a better financial future through filing. 

 

Best Bankruptcy Attorneys in Salt Lake City

 

If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.

Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!

Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-0980.

 

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