Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of a federal bankruptcy court. Its purpose is to provide a fresh start for those who are overwhelmed with debt and cannot repay their creditors. However, it’s important to understand the frequency of filing for bankruptcy and the factors to consider before filing. Filing for bankruptcy should be approached with careful consideration, as filing too often can have negative consequences on one’s financial reputation. I
n this blog post, we’ll discuss the types of bankruptcy, the frequency of filing for bankruptcy, factors to consider before filing, how bankruptcy affects credit scores, and more. Additionally, we’ll provide valuable insights on how to file for bankruptcy and the importance of seeking professional guidance throughout the process.
Types of Bankruptcy

There are two main types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also known as liquidation bankruptcy and involves the liquidation of assets to repay creditors. Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy that involves creating a repayment plan to pay creditors over a period of three to five years.
The eligibility requirements for each type of bankruptcy differ. To file for Chapter 7 bankruptcy, an individual must pass a means test that evaluates their income and expenses. If their income is below the state median, they are eligible to file for Chapter 7. If their income is above the state median, they must pass a second means test to determine their eligibility for second bankruptcy. To file for Chapter 13 bankruptcy, an individual must have a regular income and debts that do not exceed a certain amount.
Frequency of Filing for Bankruptcy
There are time limits between bankruptcy filings, for different types of bankruptcy. For Chapter 7 bankruptcy, an individual must wait eight years from the date of their previous Chapter 7 discharge to file again. If they want to file for Chapter 13 bankruptcy after a Chapter 7 discharge, they must wait four years. For Chapter 13 bankruptcy, an individual must wait two years from the date of their previous Chapter 13 discharge to file again.
Filing for bankruptcy too frequently can have negative consequences. It can damage an individual’s credit score, make it difficult to obtain credit in the future, and even result in the dismissal of their previous bankruptcy case itself.
Factors to Consider Before Filing for Bankruptcy
Before filing for bankruptcy, it’s important to evaluate your financial situation and consider alternatives. Bankruptcy should be a last resort, as it can have long-lasting consequences. Some alternatives to bankruptcy include negotiating with creditors for a payment plan, a bankruptcy lawyer seeking credit counseling, or debt settlement.
Risks and benefits should be weighed before filing for bankruptcy. Bankruptcy can eliminate most debts, have bankruptcy law stop creditor harassment, and provide a fresh start. However, it can also result in the loss of assets, damage to credit scores, and the need to pay higher interest rates on future loans.
How Bankruptcy Affects Credit Scores

Bankruptcy can have a significant impact on credit scores. It can remain on credit reports for up to ten years and can lower credit scores by 200 points or more. However, rebuilding credit after bankruptcy is possible. It’s important to make on-time payments, keep credit card balances low, and avoid taking on new debt.
There are also credit counseling services that can help individuals rebuild their credit after bankruptcy. These services provide education on budgeting, managing credit, and saving money.
Conclusion
Filing for bankruptcy can provide a fresh start and debt relief for those who are overwhelmed with debt. However, it’s important to understand the frequency of filing for bankruptcy and the consequences it can have. Before making a decision to file for bankruptcy, it’s important to evaluate your financial situation, consider alternatives, and seek professional advice. If you’re considering filing for bankruptcy, reach out to a bankruptcy attorney or credit counselor for guidance.
Frequently Asked Questions

How often can I file for bankruptcy?
It depends on the type of bankruptcy you filed previously, but generally, you can file for Chapter 7 bankruptcy once every eight years and often you can file for Chapter 13 bankruptcy, once every two years.
Can I file for bankruptcy if I have already filed in the past?
Yes, you can file for bankruptcy even if you have filed in the past. However, the time between filings varies depending on times can you file and the type of bankruptcy you previously filed.
Can I file for bankruptcy if my previous case was dismissed?
Yes, you can file for bankruptcy even if your last previous bankruptcy case was dismissed. However, there may be restrictions on when you can re-file.
Can I file for bankruptcy if I am currently in a Chapter 13 repayment plan?
Yes, you can file for bankruptcy even if you are currently in a Chapter 13 repayment plan. However, there may be restrictions on when you can first file bankruptcy again.
Can I file for bankruptcy if I have already received a discharge in a previous case?
It depends on the type of bankruptcy you previously filed and when you received your discharge. Generally, the times you can file cannot receive a discharge if you have received one in the past eight years for Chapter 7 bankruptcy or two years for Chapter 13 bankruptcy.
Can I file for bankruptcy multiple times in a year?
Generally, no. Filing for bankruptcy multiple times in a short period of a time limit may be considered an abuse of the system.
Can I file for bankruptcy if I have a pending lawsuit or judgment against me?
Yes, you can file for bankruptcy even if you have a pending lawsuit or judgment against you. However, double filing for bankruptcy may not stop the lawsuit or judgment.
Can I file for bankruptcy if I have tax debts?
Yes, you can file for bankruptcy even if you have tax debts. However, certain conditions must be in multiple bankruptcy filings are met, such as the taxes being at least three years old and filed at least two years prior to the bankruptcy filing.
Can I file for bankruptcy if I owe student loans?
Yes, you can file for bankruptcy even if you owe student debt consolidation or loans. However, student loans are generally not discharged in bankruptcy.
Can I file for bankruptcy if I owe child support or alimony?
No, child support and alimony debts are generally not discharged in bankruptcy.
Glossary
- Bankruptcy – a legal process where a person or business declares that they cannot pay their debts and seeks protection from creditors.
- Chapter 7 bankruptcy – a type of bankruptcy that involves liquidating assets to pay off debts.
- Chapter 13 bankruptcy – a type of bankruptcy that involves creating a payment plan to pay off debts over time.
- Debtor – a person who owes money to creditors.
- Creditor – a person or company to whom money is owed.
- Discharge – the legal release of a debtor from their obligation to pay certain debts.
- Automatic stay – a legal protection that prevents creditors from taking collection actions during bankruptcy proceedings.
- Filing fee – the fee required to file for bankruptcy.
- Bankruptcy trustee – a person who administers the bankruptcy estate during the bankruptcy process.
- Exemptions – property or assets that are protected from being sold off during bankruptcy proceedings.
- Means test – a calculation used to determine if a person’s income is low enough to qualify for Chapter 7 bankruptcy.
- Reaffirmation agreement – an agreement between a debtor and creditor to continue paying a debt, even after bankruptcy.
- Bankruptcy code – the set of federal laws that govern bankruptcy proceedings.
- Credit counseling – a requirement for all bankruptcy filers to complete before filing for bankruptcy.
- Credit report – a record of a person’s credit history, used to determine their creditworthiness.
- Priority debts – debts that must be paid off before other debts during bankruptcy proceedings.
- Secured debts – debts that are backed by collateral, such as a car or house.
- Unsecured debts – debts that are not backed by collateral.
- Dismissal – the termination of bankruptcy proceedings without a discharge of debt.
- Bankruptcy discharge – the final step in bankruptcy proceedings, where the debtor is released from their obligation to pay certain debts.