Can You Really Declare Bankruptcy Twice?
One of the questions that often comes up regarding bankruptcy is whether a person can file more than once. Perhaps surprisingly, the answer is yes. A person can declare bankruptcy more than once, but there is much more to this story. You can’t simply go from bankruptcy to bankruptcy throughout the rest of your life in order to avoid paying your bills.
As a matter of fact, before we get into the specifics about how often you can declare bankruptcy, we need to clear up a few important facts first. If you are looking to declare bankruptcy a second time, there is a serious problem in your financial life and most likely your personal habits and even character. Yes, I said it. There is a serious problem when a person has to declare bankruptcy more than once.
Unless you are one of the most unfortunate individuals in the nation, having to declare bankruptcy more than once is simply a sign of irresponsible spending, lack of self-discipline, and an unwillingness to improve your own financial future. Bankruptcy was designed to help honest people who were overwhelmed with their consumer debt, such as credit card debt and other similar loans, and who simply need a fresh start.
This scenario can happen to any of us. It can certainly be the result of irresponsible spending, but it can also happen as a result of medical emergencies not covered by insurance, small business failures, and other unfortunate situations that can happen to any honest and hard-working person. Bankruptcy offers a way out of this overwhelming debt load, even though it has a long-term negative effect on your credit and financial reputation. It can help an individual or family start over financially and build a better future.
Someone who has to declare bankruptcy a second or third time is almost certainly guilty of irresponsible behavior. If a person is declaring bankruptcy today and is already thinking about the possibility of filing a second time in the future in order to avoid future debts, that individual may even be guilty of fraud.
So how long do you have to wait before you file bankruptcy a second time? If you filed a successful Chapter 7 petition in which your debts were eliminated, you will need to wait eight years before you can file again. On the other hand, you do not need to wait the full eight years if you filed a Chapter 13 bankruptcy (which involves a payment plan) and have paid your creditors 70% of the payments you agreed to. Also, the eight year waiting period may not apply if your original Chapter 7 filing was not successful.
Keep in mind that there is no guarantee that your second bankruptcy will be successful. This is why it is critical for you to disciplined your spending and become a more responsible consumer if you are to have any hope of a better financial future. Bankruptcy is really meant to be a second chance for American consumers. Using it in this way can help you gradually build a better financial future.
