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There's no limit on how often you can file bankruptcy, but, depending on the bankruptcy type, you are legally required to wait two to eight years from the date you filed your initial case before you can receive another court-ordered cancellation, or discharge, of eligible debt.
How Many Times Can You File for Bankruptcy?
The length of the waiting period for filing bankruptcy depends on whether the initial bankruptcy case was filed under Chapter 7 of federal bankruptcy law (also known as liquidation bankruptcy) or Chapter 13 (also known as the wage-earner's plan), and which category of bankruptcy you plan to file in the subsequent case:
| Waiting Periods Between Discharges for Repeat Bankruptcies | ||
|---|---|---|
| Original Chapter Filing | New Chapter Filing | Minimum Time Period for Qualification |
| Chapter 7 | Chapter 7 | Eight years |
| Chapter 7 | Chapter 13 | Four Years |
| Chapter 13 | Chapter 13 | Two Years |
| Chapter 13 | Chapter 7 | Up to six years* |
*Completion of certain requirements under Chapter 13 repayment plans can shorten the waiting period for discharge eligibility under a subsequent Chapter 7 case
Following Discharge of Eligible Debts Under Chapter 7
You can qualify for another Chapter 7 discharge if you file Chapter 7 again eight years or more after the filing date for the first case. If you file for Chapter 13 after Chapter 7, you can qualify for a discharge four years or longer after the Chapter 7 filing date.
Following a Chapter 13 Discharge
You can qualify for another Chapter 13 discharge if you file Chapter 13 again on or after the two-year anniversary of your first filing date.
You can qualify for a Chapter 7 discharge if you file six years or more after the filing date for the Chapter 13 case. However, meeting certain requirements of your initial Chapter 13 repayment plan—completing all payments to unsecured creditors or paying at least 70% of all unsecured claims—can shorten the waiting period. Details vary by case and jurisdiction, so consult a qualified bankruptcy attorney if this is your intention.
Following Bankruptcy Dismissal
If your initial bankruptcy is dismissed without a discharge, you may be eligible to file again (under either Chapter 7 or Chapter 13) immediately. If, however, the case was dismissed because you failed to appear in court or otherwise disobeyed a court order, the bankruptcy judge may forbid you from filing again for six months (180 days), and debts presented in the first case may be ineligible for discharge in the new one.
Learn more >> What Is a Bankruptcy Discharge?
Why You Shouldn't Rely on Bankruptcy as a Financial Strategy
There can certainly be legitimate reasons for repeat bankruptcy filings, but backlogged courts and overuse of bankruptcy have made some judges skeptical of repeat filings. Here are some reasons you should find other ways to repay your debts before filing bankruptcy.
Protection From Creditors May Be Limited
You may be less protected than in an initial bankruptcy when filing again.
If you file bankruptcy within one year of a previous bankruptcy, a key bankruptcy protection—the automatic stay that bans creditors bringing suit or taking other action to recover debts from you—may be limited to 30 days from your filing date. If you file a third time within a year, no automatic stay may be enacted (although you may ask the court to impose one by showing sufficient cause). In typical bankruptcies, the stay remains in place until the case is resolved.
Lenders Look Askance at Bankruptcies
Lenders evaluating creditworthiness typically consider a bankruptcy a major red flag, and some even refuse to consider applicants with bankruptcies on their credit reports. It's safe to assume creditors would be even more wary if your credit report lists two (or more) bankruptcies—a scenario that's entirely possible if you re-file for bankruptcy within the waiting periods allowed by law.
Credit Scores Will Take an Extra Beating
A single bankruptcy can be devastating to your credit standing, with a deep, lasting negative impact on your credit scores. Depending on the timing of your bankruptcy filings, a repeat bankruptcy can compound the damage.
Bankruptcies appear on the credit reports compiled by the three national credit bureaus (Experian, TransUnion and Equifax), and remain either seven years from the date the case was filed (Chapter 13) or up to 10 years from the filing (Chapter 7). Bankruptcy entries on credit reports cause deep, long-lasting damage to credit scores. Their harm to credit scores lessens over time, but re-filing a new bankruptcy before another falls off your credit report can only prolong the damage.
Learn more >> How Soon Will My Credit Improve After Bankruptcy?
How to Avoid Filing Bankruptcy Again
Bankruptcy is a difficult, draining process, and if you've been through it before, you'd probably prefer to avoid another round. Here are some time-tested steps you can take to prevent bankruptcy altogether or avoid repeating it if you've been through it before.
- Consult a credit counselor. Certified nonprofit credit counselors specialize in helping individuals and families with debt management problems. They can help you catalog and prioritize your debts, recommend strategies for tackling them and, if necessary, intervene with creditors on your behalf to seek more manageable repayment terms. A credit counselor can also offer guidance on all the other recommendations listed below.
- Take a debt inventory. Documenting how much you owe, to whom and the amounts and payment due dates for each loan and credit account is a good first step in getting control of your debts. The effort can help you prioritize your obligations and form a plan for tackling them.
- Adopt a budget. To create a budget, you must consider all expenses (not just debts) in light of your income. By documenting what you spend on necessities, debts and discretionary items, you can begin to understand how debts may have gotten out of hand and how changing your habits may help you regain control.
- Seek additional income. If you're having trouble covering your bills, a source of supplemental income could help you catch up. Consider a part-time job or other side hustle that can fuel your efforts to pay down outstanding debt.
- Consolidate your balances. If you still have good credit, debt consolidation can be a good option for addressing high-interest debt such as credit card balances. Debt consolidation involves the use of a loan with a lower interest rate, or perhaps a credit card with a 0% introductory annual percentage rate (APR), to replace those high-interest balances with lower, more predictable monthly payments.
- Consider a debt management plan. If you cannot get your debts down to affordable levels using other methods, a credit counselor can work with you and your creditors to set up a debt management plan, by which you repay what you owe over time in smaller amounts than your regular payments require. This approach can lead to cancellation of credit card accounts and can harm credit scores, but it is generally less damaging to credit than bankruptcy.
- Understand debt settlement. Debt settlement companies are for-profit services that advertise their ability to negotiate away debts on your behalf, but can leave you owing even more than you started with. What's more, since creditors are not obligated to accept their negotiation offers, debt settlement companies may not prevent you from ultimately having to file bankruptcy.
Learn more >> Things to Consider Before Filing Bankruptcy
The Bottom Line
Repeat or serial bankruptcy can be devastating for your credit and can limit your access to loans and credit cards for many years. Before taking that path, it's wise to consult with a bankruptcy attorney. If you choose that route, you can take steps as soon as possible to begin rebuilding your credit, and you can track the impact on your credit with free credit monitoring from Experian.
