Losing bankruptcy protection can be overwhelming—especially if you're worried about keeping your home, car, or other assets. So, can you file a new Chapter 13 case and still protect your property?

Yes, you can usually refile a Chapter 13 case and protect your property, but if it's within a year of dismissal, the automatic stay may only last 30 days unless extended by court order.

Having helped countless individuals preserve their assets through strategic bankruptcy refilings, I know how important it is to act quickly and correctly. Below, I’ll walk you through what the law says, when the stay applies, and how to secure your property during a second filing.

 

Understanding Refiling Chapter 13

It is usually possible to refile under Chapter 13 after a case has been dismissed. However, you must be able to show that you have sufficient regular income to make the new plan feasible. If a car or other collateral has been repossessed, it can usually be recovered, provided that it hasn’t been sold to a third party and the new plan provides for payment of the debt.

If you have had a prior case pending within the last year, your attorney must file a motion to extend the automatic stay which goes into effect when your case is filed. Otherwise the stay would expire 30 days after the case is filed, putting your property in jeopardy. Motions to extend the stay are usually granted without dispute.

If you have had 2 prior cases pending within the last year, the stay does not go into effect automatically. Your attorney must file a motion to impose the stay. Otherwise, your creditors could try to repossess and dispose of their collateral. Motions to impose the stay are also usually granted, but you will likely have to show the court that your circumstances have changed and that the new plan is workable.

 

If your Chapter 13 case was dismissed without prejudice, you can generally refile immediately. However, if dismissed with prejudice, you may need to wait up to 180 days.

 

If you are considering filing a new case after dismissal of a previous case, it is very important to consult with an experienced attorney right away. Your attorney may be able to formulate a more favorable repayment plan so that the new case will be more likely to succeed.