The goal of bankruptcy is to give you a better financial future. It provides a fresh start. You file for bankruptcy to eliminate your debt, and then you hope to avoid future debt and the complications that come with it.
But what if you still find yourself in debt later? For instance, maybe you filed for bankruptcy to discharge credit card debt, but then you had a medical emergency. You are now facing hundreds of thousands of dollars in medical bills that you cannot afford. Is it possible to use bankruptcy twice?
How long you have to wait
Yes, you can file for bankruptcy more than once. But, depending on when you last filed, you may have to wait a certain amount of time.
For instance, if you filed Chapter 7 bankruptcy the first time and you want to do so again, there is a waiting period of eight years, in most cases. If you would like to file for Chapter 13 bankruptcy the second time, then the waiting period is reduced to just four years.
If you filed for Chapter 13 bankruptcy the first time and you want to use Chapter 7 the second time, you have to wait for six years in most cases, though there are exceptions, depending on whether or not you paid back unsecured creditors. If you would like to file for Chapter 13 twice in a row, the waiting period is short, at just two years.
As you can see, this means that you can use bankruptcy multiple times and it may be a very useful tool. But it is critical that you understand exactly how this process works and what legal steps to take.