Bankruptcy is not a word many of us like to hear. It brings with it numerous negative connotations. However, sometimes bankruptcy can’t be avoided. When your finances have gotten out of control, you may not have any option but to file bankruptcy. But what happens if you’ve filed for bankruptcy once and then find yourself in the same predicament again? Can you declare a second bankruptcy in Georgia?

How Many Times Can You File for Bankruptcy in Georgia?

Laws don’t limit how many times you can file for bankruptcy. So, technically, you can file for bankruptcy as many times as you want. However, you can’t file bankruptcy again if you haven’t had your first bankruptcy discharged. Declaring bankruptcy should be a last resort, which means you typically won’t want to repeat the process. Filing a second bankruptcy has long-term consequences.

The Legalities of Filing Bankruptcy Twice

While it is legal to file bankruptcy as many times as necessary, some rules dictate how often you file. The US Bankruptcy Code regulates multiple case filings. It controls things like how long someone must wait to file again, as well as a few other things.

Several factors dictate the mandatory waiting period between filings. Those include the following:

• If your first bankruptcy case was discharged or not. If your first bankruptcy case was discharged, your waiting period before filing again would be different than if your case was dismissed without discharge.
• What kind of bankruptcy have you filed before? The amount of time you must wait before filing again depends on the type you filed before. Usually, individuals file for either Chapter 13 or Chapter 7 bankruptcy.
• What chapter of bankruptcy do you intend to file the second time? Your waiting period doesn’t just depend on the type you filed before. It also depends on the type you plan to file the second time.
• How much time has passed since you filed the first bankruptcy?

Filing When Your First Bankruptcy Was Successfully Discharged

There are two main types of bankruptcy that individuals file on behalf of themselves or their families. Those are Chapter 7 or Chapter 13. Many individual bankruptcy filings are Chapter 7 filings. This is the type that people mean when they say liquidation bankruptcy.

Chapter 13 is the debt reorganization form of bankruptcy. With this form of bankruptcy, you will pay on your debts for three to five years. Filing Chapter 13 has different benefits from Chapter 7.

You will receive your bankruptcy discharge at the successful end of Chapter 7 or Chapter 13 case. A discharge is an order from the bankruptcy court that erases your debt. That means those lenders cannot legally attempt to collect those debts from you.

Most people think that your waiting period starts with the bankruptcy discharge date. However, that isn’t correct. Your timer starts the day you file your first bankruptcy. Let’s look at the time frame you have for waiting to file if you want to be eligible for a second discharge.

Filing Chapter 7 Following Chapter 7

If you have filed a Chapter 7 case, you must wait eight years before you can file another Chapter 7 case. That’s if you want to receive a second bankruptcy discharge.

Filing Chapter 7 Following Chapter 13

If you initially filed a Chapter 13 case, you must wait six years to file a Chapter 7 case. Once six years pass from the date you filed a Chapter 13 case that was successfully discharged, you can file for relief under Chapter 7. The six-year waiting period can be waived if you paid all unsecured creditors during your first Chapter 13 plan.

Filing Chapter 13 Following Chapter 7

If you want to receive a discharge of debt in your second bankruptcy, you must wait four years to file a Chapter 13 if your initial bankruptcy case was a Chapter 7. However, there are times when it could make sense to file before the waiting period has passed. This is because Chapter 13 requires a payment plan, which can help you catch up on your payments.

When you file bankruptcy, an automatic stay is issued, requiring creditors to stop collection activities against you. So, filing for bankruptcy can temporarily stop foreclosure activities. Chapter 7 bankruptcy can potentially stop foreclosure while you’re in bankruptcy. However, you will have to catch up on any missed monthly payments and then continue to make your payments on time if you want to keep your house.

Chapter 13 bankruptcy includes a three to five-year repayment play that can include making up missed mortgage payments. Usually, there can be no foreclosure while you’re in this repayment plan. That’s why some people choose to file a Chapter 13 even if their debts won’t be discharged.

Filing Chapter 13 Following Chapter 13

The waiting period between Chapter 13 cases is two years. If you want your debts to be successfully discharged a second time, you must wait two years after the filing date of your first Chapter 13 case to file a second case.

The waiting period between bankruptcy filings begins with the filing date rather than the discharge date.

What If Your First Bankruptcy Case Wasn’t Discharged in Georgia?

In bankruptcy cases, there’s a difference between discharged and dismissed. If the case was dismissed, it means none of your debts were erased, and you are still required to pay them back. If you didn’t receive a discharge and the case was dismissed, you could be able to file for bankruptcy again immediately.

Reasons a bankruptcy case can be dismissed include:

• You didn’t appear at the hearing or the meeting of creditors.
• You didn’t file your documents correctly and on time.
• You didn’t pay your bankruptcy filing fees.
• You didn’t pay your required plan payments.
• You weren’t truthful when you filed for bankruptcy.

When your case has been dismissed, you could be able to file for bankruptcy again immediately, or you could be made to wait before filing. For example, the Bankruptcy Code requires you to wait 180 days before filing bankruptcy again if your case was dismissed for not following court orders or not appearing before the court as ordered.

If you requested a voluntary dismissal because your creditors requested relief from the automatic stay, you could be required to wait 180 days before filing again. If a creditor requested relief from the automatic stay, it means they asked to be allowed to continue collection actions against you.

If someone files for bankruptcy again after a first case is dismissed, the court will decide if it thinks you filed in good faith. That means the court will evaluate whether you were trying to take advantage of the bankruptcy process. For example, suppose the reason for dismissal was a failure to pay your filing fees. In that case, you can usually file a second case immediately, provided you pay the necessary fees for your second case.

Should You File Bankruptcy a Second Time in Georgia?

Bankruptcy is a powerful debt relief tool, and you should carefully look at your financial situation to determine whether a second bankruptcy makes sense to you. Every bankruptcy you file affects your credit score and negatively impacts your credit report. Chapter 7 bankruptcy remains on your credit report for ten years from the date you filed, and Chapter 13 will be on the report for seven years.

Not filing bankruptcy can also have a negative impact on your credit, with missed payments and collection activities for that. If you’ve reached a point where you need to file a second bankruptcy, you should evaluate why you are in this financial situation again. Then, you should take steps to correct your financial mistakes and ensure better choices moving forward.

Sometimes, it’s a strategically sound financial move to file for a 2n’d bankruptcy once you’ve had a successful bankruptcy discharge. For example, filing Chapter 13 after a discharged Chapter 7 can help you set up payments to catch up on mortgage payments or other debts that couldn’t be included in the Chapter 7 case. Chapter 13 can help you avoid garnishments by separate creditors and can allow you to stretch the length of time you have to pay your debts.

The Court Watches for Abusive Filings

The court pays close attention to those who file multiple bankruptcy cases. The court is watching to ensure that repeat filers aren’t playing the system to avoid paying debts. Those who file repeatedly could lose some of the bankruptcy protection benefits. The court could choose to revoke the automatic stay or deny a discharge, meaning collection activities can continue.

Consult an Attorney Before You File a Second Bankruptcy in Georgia

Filing one bankruptcy is difficult enough. Filing a second bankruptcy could do more harm than good if you haven’t planned appropriately. Before you consider filing a 2n’d bankruptcy, consult a qualified bankruptcy attorney to help guide you.

You might also consider credit counseling before filing. This will allow you to evaluate all of your options to determine whether bankruptcy is the right choice for you.

Call Today For a Free Consultation From An Experienced  Georgia Bankruptcy Lawyer at Morgan & Morgan

While filing a second bankruptcy is legal, you should carefully consider whether it’s the appropriate choice for you. Before filing, you should consider consulting with one of the experienced attorneys with Morgan & Morgan. They can help determine whether a second bankruptcy proceeding is proper for you.

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