When Can I File Chapter 7 After Filing Chapter 13?

It is not uncommon for someone to ask me if they can file a chapter 7 bankruptcy despite having filed a chapter 13 previously.  There are a few scenarios where this is applicable:

1. Chapter 13 was Dismissed.  A lot of chapter 13 cases get dismissed--the most common reason being the inability to make the monthly payment.  If a chapter 13 case gets dismissed before completing the 3-5 years of monthly payments, then no discharge is granted and the debts remain.  Some choose to begin the chapter 13 process again, but most choose to file a new chapter 7 case.  The fact that you recently filed a chapter 13 case has absolutely no bearing on your ability to file a new chapter 7 case.  The rules governing when and how often you file bankruptcy are centered around the discharge.  If you never received a discharge, then most likely you can file as soon as possible after the dismissal of the previous case.
2. Chapter 13 was Completed.  If you completed a chapter 13 case, which means you made monthly payments for 3 to 5 years or until 100% of the debts were paid off, then you can file a new chapter 7, but only after a certain amount of time has elapsed since the filing of the previous case.  Again, the time is measured from the "filing" date, not the "discharge" date.  If the plan paid off less than 70% of the unsecured debt, then you'll need to wait 6 years to file a new chapter 7 case.  If you wanted to file a new chapter 13 case, the wait would only be 4 years.  If you paid off more than 70% of the unsecured debt, then you won't have to wait the 6 years to file a new chapter 7 case.

Put simply, you can likely file a chapter 7 bankruptcy immediately if your chapter 13 was dismissed, and you'll likely need to wait 6 years if you received a chapter 13 discharge. Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.