Can I obtain bankruptcy protection again if I have filed a bankruptcy in the past and am now falling behind in payments again?

Submitted by webadmin on Tue, 04/09/2013 - 17:41

Yes, you can file again, unless you have been in bankruptcy within the past six months and either:

  • your case was dismissed because you did not follow the orders of the bankruptcy court or did not show up in court when you were supposed to; or
  • you asked the court to dismiss your case after a creditor moved for relief from the Automatic Stay.

If you have been in bankruptcy within the past year, you may not get the full protection of the Automatic Stay. Because the automatic stay protects you from your creditors after you file a bankruptcy case, it might not be worth it for you to file for bankruptcy if the automatic stay will not apply. Your lawyer can tell you if it makes sense for you to file for bankruptcy if you have been in bankruptcy within the past year.

As explained above, the bankruptcy Discharge gives you your fresh start. But if you have received a bankruptcy discharge in the past, you may not be eligible for another discharge right now.

If your last bankruptcy was a chapter 7 and:

  • you filed within the last four years, you will not receive a Chapter 13 discharge or a Chapter 7 discharge if you file today;
  • you filed within the past eight years, you will not receive a Chapter 7 discharge if you file today.

If your last bankruptcy was a chapter 13 and:

  • you filed within the past two years, you will not receive a Chapter 13 discharge if you file today;
  • you filed within the past six years, you will not receive a Chapter 7 discharge unless you paid your creditors at least 70% of what they were owed in your Chapter 13 plan.
  • your lawyer can tell you whether it makes sense to file for bankruptcy even if you cannot receive a discharge.