Bankruptcy is a last resort tool to help people who have gotten in over their heads with debt. Once you file bankruptcy, it’s expected that you will manage your finances better after the bankruptcy is discharged. However, sometimes, people find themselves in dire financial straits again after their bankruptcy is discharged. When this happens, it’s crucial to know whether it has been long enough since the previous filing to be allowed to file again.

Different rules exist for how often you can file bankruptcy depending upon which type of bankruptcy you initially filed. The average wait time is two to eight years, depending on both the previous kind of bankruptcy filing and the intended new filing.

How Often You Can File Bankruptcy in Georgia

How often you are allowed to file bankruptcy depends on the type of bankruptcy previously filed and the new type of bankruptcy you intend to file. For example, waiting periods are different for Chapter 7 bankruptcy than for Chapter 13.

The caveat for waiting periods is they only apply in bankruptcy cases that were successfully discharged. The bankruptcy discharge releases the debtor from the responsibility associated with the debts that were part of the bankruptcy case. That means if your case were dismissed rather than discharged, you typically wouldn’t have to wait to apply for another bankruptcy. When you find yourself in this situation, you can file for bankruptcy again anytime, provided you haven’t done any of the following within 180 days before the new filing:

• Your case was dismissed because you disobeyed a court order.
• Your case was dismissed because you missed a court appearance.
• You requested and obtained a voluntary dismissal of your bankruptcy case.

How Often You Can File Chapter 7 Bankruptcy

Chapter 7 bankruptcy is known as liquidation bankruptcy because at least some of the debtor’s assets are liquidated, and the proceeds from selling them are used to pay the creditors. If your previous case was a Chapter 7 case and you intend to file a new Chapter 7 case, you must adhere to an eight-year waiting period between filings. Individuals can sometimes file for a reorganization under Chapter 11, which is typically considered a business bankruptcy option.

The guidelines for filing a Chapter 7 following a Chapter 13 case are a little less straightforward than filing back-to-back Chapter 7 cases. Here are some of those guidelines:

• If all creditor claims were paid through the previous Chapter 13 case, there is no waiting period to file a Chapter 7 case.
• If the previous Chapter 13 plan was a good faith proposal representing the best effort to pay and 70% of the claims were paid through the case, there is no waiting period to file for Chapter 7 relief. When the court uses the best effort as a part of a bankruptcy case, it means you must use your disposable income to pay your creditors.
• If less than 70%, up to 100%, of claims were not paid during a previous Chapter 13 case, you would be required to wait six years before filing a Chapter 7 case.

How Often Can You File for Chapter 13 Bankruptcy Protection in Georgia

Debtors can pay some or all of their debts through a court-approved Chapter 13 bankruptcy plan. These court-approved plans last approximately three- to five years.

If you filed bankruptcy before and your previous bankruptcy was a Chapter 7 bankruptcy, but now you plan to file a Chapter 13 bankruptcy, you usually have to wait at least four years from when the Chapter 7 bankruptcy was filed. That waiting period is reduced to two years if you plan to file back-to-back Chapter 13 cases.

How Many Times Can You File Bankruptcy in Your Lifetime?

Even though you have a waiting period between filing bankruptcy cases, there isn’t a limit to how many times you can file. However, it’s crucial to remember that each bankruptcy filing affects your credit. Chapter 7 bankruptcy filings can remain on your credit for ten years from the date the case was filed, and a Chapter 13 bankruptcy can stay on your credit report for about seven years after you filed your bankruptcy case.

 

Double Filing

Double filing is sometimes called Chapter 20 bankruptcy because it involves filing a Chapter 13 immediately after your Chapter 7 proceedings are discharged. Chapter 20 isn’t an official part of the bankruptcy laws. It’s simply a way of referring to filing a Chapter 7 followed immediately by a Chapter 13 filing. Filing back-to-back cases hs pros and cons you must consider before continuing with back-to-back bankruptcy cases.

Pros

Primarily, the advantage of using the “Chapter 20” strategy is that it can enable you to take care of more of your debt over time. Chapter 7 bankruptcy allows you to be rid of unsecured debts, while Chapter 13 will help you to create a payment plan for both secured and unsecured debts.

Beginning with a Chapter 7 filing allows you to decrease the amount of debt, so you will be below the limits necessary to file for a Chapter 13. Using this strategy could also allow you to catch up on things such as mortgages or car payments that had gotten behind.

Here’s a synopsis of the pros of double filing:

• You can wipe out more of your debt over time.
• You can decrease debt by filing Chapter 7 before restructuring debt with Chapter 13.
• You get more time to catch up on your past-due bills.

Cons

The disadvantages of double filing are as follows:

• You still can’t discharge certain debts, with child support and alimony being the most notable.
• To receive the full discharge of the debts in a Chapter 7 case, you must wait a minimum of four years before filing a Chapter 13.
• You must prove that you are acting in good faith and not attempting to defraud your creditors.
• Filing back-to-back bankruptcies will cause a longer period of time before your finances are back in order.

Strategies to Use When Considering a Double Filing in Georgia

When considering double filing, you must develop a plan to help smooth the process. Here are some steps that might be worth consideration:

1. Consider all of the debt relief possibilities before filing a second bankruptcy. Another option could be available for you to help ease your debt burden.
2. If there is no alternative to bankruptcy, determine which kind of bankruptcy to file the second time.
3. Do thorough research regarding the consequences of a second bankruptcy and how it affects your credit and assets.
4. Find out what the waiting period is between the original filing type and the second bankruptcy you want to file.
5. Decide whether you need help from an attorney to file the second bankruptcy.

Multiple Filings and Your Credit Report

Filing at least two bankruptcies means they will stay on your credit report for several years. In fact, they could both show on the report simultaneously. A completed Chapter 7 bankruptcy case can remain on a credit report for up to 10 years, and a completed Chapter 13 case can stay on the report for up to 7 years. Possible consequences of multiple filings include:

• The automatic stay could be lost. This automatic stay prevents creditors from attempting to collect the debts of someone who has filed for bankruptcy.
• Your credit score could be lowered. As long as either or both bankruptcies appear on your credit report, your credit score will remain lower.
• You will likely have difficulty qualifying for future credit. This includes mortgages, credit cards, or automobile loans.
• There could be problems with a job search, buying insurance, or even renting an apartment.

Other Options

Bankruptcy isn’t the only debt relief option available. It’s considered a last resort. There are several alternatives available to bankruptcy. Some of those include:

• Working with a consumer credit counselor. Consumer credit counselors can assist you with creating a debt management plan that helps to eliminate a portion of your debt. Many times, the consumer credit counseling agency will be a nonprofit organization.
• Obtaining a debt consolidation loan. With this kind of loan, you will combine several of your outstanding debts into a single monthly payment which will also help to decrease your high-interest debt.
• Working with a debt settlement company. There are for-profit organizations that offer debt settlement programs. They assist you with negotiating better rates and payment plans with your creditors. These programs can be risky and are typically considered a last resort before filing for bankruptcy.

Consult a Bankruptcy Lawyer Before Deciding the Best Course of Action

When considering multiple filing bankruptcies, it’s best to consult an experienced bankruptcy attorney like those at Morgan & Morgan. They can help you determine the appropriate course of action for your individual case. If you have questions about bankruptcy law or if you would like to know if you meet the criteria for filing a second bankruptcy case, contact the lawyers at Morgan & Morgan for a consultation. Their experienced team can answer your questions regarding a second bankruptcy case in Georgia.

Related Content: How Long After Bankruptcy Can You Buy a House