No one wants to file a second bankruptcy; heck, no one wants to file a first bankruptcy, but for many debt laden families and small businesses, bankruptcy is the only way they will regain control of their financial life. However, during prolonged economic downturns, or occurrence of some drastic event like a severe illness will drive some people to file bankruptcy a second time. So, when can you file a second bankruptcy?
There are different timelines depending on which chapter of bankruptcy you previously filed, also the timelines run from the filing dates, not the discharge date. Here are the rules:
-Chapter 7 to Chapter 7 = eight years (727(a)(8))
-Chapter 13 to Chapter 7 = six years (727(a)(9))
-Chapter 11 to Chapter 7 = eight years (727(a)(8))
-Chapter 7 to Chapter 13 = 4 years (1328(f)(1))
-Chapter 11 to Chapter 13 = 4 years (1328(f)(1))
-Chapter 13 to Chapter 13 = 2 years (1328(f)(2))
The timelines listed above relate to discharged first bankruptcies, this post is not about refilling a case that was dismissed.
As a side note, Deuteronomy 15:1 commands that debt be forgiven every seven years.
By Matt Berkus
