Filing for bankruptcy is a legal solution that offers individuals relief from overwhelming debt, but it’s not a process that can be repeated frequently without limitations. For California residents and those across the U.S., bankruptcy filings are governed by federal law.
Understanding the timeframes between filings for different types of bankruptcy is crucial before taking the next step.
Chapter 7 Bankruptcy: 8-year waiting period
If you previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from your last discharge before you can file again under Chapter 7. This extended period prevents individuals from continuously filing to escape financial obligations.
If you need to file for bankruptcy before the eight-year period ends, you may still be eligible for Chapter 13, depending on your financial situation and the time since your Chapter 7 discharge.
Chapter 13 Bankruptcy: 2 to 4-year waiting period
The waiting period is shorter for those who filed for Chapter 13 bankruptcy. If you previously filed under Chapter 13 and received a discharge, you must wait two years before you can file for Chapter 13 again.
However, the waiting period is four years if you wish to file for Chapter 7 after a Chapter 13 discharge. This timeline ensures that individuals attempt to repay their debts under Chapter 13 before seeking the complete debt discharge available in Chapter 7.
Because bankruptcy rules are complex, it’s always best to seek assistance to better understand your options. A professional can provide personalized advice and help determine when and how often you can file based on your situation. Remember, bankruptcy can provide financial relief, but you need to know the requirements and guidelines to ensure compliance.