Although filing for bankruptcy can provide relief and a chance for a fresh start, some individuals may find themselves in ongoing financial trouble, necessitating a second or even multiple bankruptcy filings. In Georgia, you can file for bankruptcy more than once. However, it is important to understand that there may be conditions under which this is possible, as well as the specific regulations regarding multiple filings, especially if you encounter persistent financial difficulties.
Why Would You File for Bankruptcy More Than Once?
Life often presents us with unexpected challenges, and financial difficulties can be particularly daunting. Sudden medical emergencies, job loss, or unforeseen expenses can push diligent planners into debt. In these cases, considering bankruptcy may become necessary more than once.
To Address Lingering Debts
Bankruptcy laws help individuals and businesses restart by allowing them to eliminate or reorganize debts. This process offers relief from financial burdens and a chance to reassess strategies. However, achieving long-term stability is not straightforward. A second bankruptcy filing can be essential for addressing lingering or new debts after the first filing.
The Need to Cover Outstanding Obligations
A Chapter 13 bankruptcy will usually involve a structured repayment plan that spans three to five years, allowing individuals to pay back a portion of their debts over time while keeping their assets. However, this approach may not always be sufficient to cover all outstanding obligations. In addition, some people may find themselves in a situation where a fresh Chapter 7 bankruptcy discharge—which involves liquidating non-exempt assets to pay back creditors—becomes necessary after having previously gone through a Chapter 13 bankruptcy.
To Help with External Factors
Economic factors can significantly influence our financial situation. For instance, changes in the job market, such as layoffs or limited job openings, can derail even the most solid financial plans. Increasing living expenses, including housing, healthcare, and everyday costs, can also put pressure on personal finances. As a result, maintaining a budget becomes more challenging, and unexpected events can jeopardize financial stability, even with careful planning.
Waiting Times Before Filing for Bankruptcy Again
After successfully finishing the bankruptcy process and obtaining a discharge, there are waiting periods that must be observed before filing for bankruptcy again, even if financial difficulties arise. These waiting periods include the following:
- Chapter 7 Bankruptcy: If you have previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of your original filing before you are eligible to file for a second Chapter 7 bankruptcy and seek another discharge
- Chapter 13 Bankruptcy: For those who have previously filed for Chapter 13 bankruptcy, the waiting period is significantly shorter. You must wait two years after your original Chapter 13 filing to refile and attempt to obtain a second discharge.
Filing a Different Bankruptcy Chapter
If you choose a different bankruptcy chapter from the one previously used, the waiting period for seeking another discharge may be shorter.
- If your previous case was a Chapter 7 discharge, you must wait four years before filing for Chapter 13.
- If your previous case was discharged through Chapter 13, you must wait six years before filing for Chapter 7.
Chapter 13 Exceptions
Certain exceptions exist for Chapter 13 bankruptcy that may enable you to file earlier. For example, if your prior Chapter 13 plan led to either of the following results, you can submit a second bankruptcy petition without delay:
- You paid off all of your unsecured debts completely, or
- You paid at least 70% of your unsecured debts under a repayment plan you proposed and executed in good faith throughout your repayment period.
Understand Your Bankruptcy Options, Contact Duncan & Brow Today
Facing bankruptcy multiple times can feel overwhelming, but you do not have to navigate it alone. Contact Duncan & Brow today to gain insight into the process and understand the potential waiting periods involved.
