How Many Times Can You File Bankruptcy in Pennsylvania?

Bankruptcy is to be used as a tool to get you where you want to be.  It is not something people want to go through multiple times if they can avoid it.  Unfortunately, this is more common than one might think. Many people declare bankruptcy and then, through no fault of their own, find themselves once again in insurmountable debt. This could be because of medical bills, loss of a job, divorce, or another factor out of their control.  Fortunately for people in this situation, the federal bankruptcy code does not have a limit on how many times a person can file for bankruptcy. However, there are specific waiting periods that must be observed before one can receive a discharge of debts in a bankruptcy case. 

Waiting Periods

The length of the waiting period bankruptcy requires will vary depending on your specific circumstances. Specifically, it will depend on what chapter of bankruptcy you have filed for in the past and what chapter you are trying to file for now. 

It should be noted that getting through the waiting period can be a challenge in and of itself. You will have to deal with debt collectors and the stress that comes with them. It is important to remember that this is just a temporary state of affairs. You simply have to make it through the waiting period so that you can once again receive relief through bankruptcy. 

How to Determine Waiting Period

As mentioned above, the waiting period before you can file for bankruptcy again will depend on what chapter of bankruptcy you have filed for in the past and what chapter you are trying to file for now. Let’s take a look at how you can determine how long you’ll have to wait before you can file for bankruptcy again.  Note that these periods are always measured from the filing dates of the cases: 

• Chapter 7 Bankruptcy After Chapter 7 Bankruptcy: You will not be eligible to file for another Chapter 7 bankruptcy until 8 years from the date of the initial filing of your first Chapter 7 bankruptcy case. 

• Chapter 13 Bankruptcy After Chapter 7 Bankruptcy: There is no waiting period for filing Chapter 13 bankruptcy after Chapter 7 bankruptcy. In fact, you could even file for Chapter 13 the day after your Chapter 7 bankruptcy is completed. However, you will have to wait 4 years from the date of the initial Chapter 7 filing in order to have your debts discharged in the new Chapter 13 case.

• Chapter 13 Bankruptcy After Chapter 13 Bankruptcy: There is no waiting period for filing Chapter 13 bankruptcy a second time. However, you will not be eligible to have your debt discharged in the new Chapter 13 case unless the new case is filed at least two years after the prior Chapter 13 case that discharged your debts.  Since most Chapter 13 cases take 3-5 years to complete, this lenient rule usually means that you can refile a case and seek a discharge of debts in Chapter 13 at any time after a prior Chapter 13 case.
• Chapter 7 Bankruptcy After Chapter 13 Bankruptcy: You will need to wait 6 years from the date you filed for Chapter 13 before you can file a Chapter 7 Bankruptcy case and be eligible to receive a discharge. 

It is important you understand exactly how long your waiting period is. You will not be able to have any debt discharged through bankruptcy until it is over. 

Exceptions for Bankruptcy Waiting Periods

There is one exception for the multiple bankruptcy waiting period. It only applies if you are trying to file Chapter 7 Bankruptcy after a Chapter 13 Bankruptcy in which the Chapter 13 bankruptcy case fully repaid your creditors.  Alternatively, you would have had to repay at least 70% of the amount of your unsecured debt and the Court further deemed your repayment plan as representing your best efforts and proposed in good faith. If either of these are true, you can receive Chapter 7 debt discharge without concern for the waiting period. 

Filing If Your Case Was Dismissed

Many bankruptcy cases are dismissed for one reason or another. This means that the court has decided you do not qualify for bankruptcy at the time of filing. When this happens, there is no waiting period. You are able to immediately file for either Chapter 7 or Chapter 13 bankruptcy.  However, as you will see below, there may be limitations imposed by the bankruptcy code or the judge. 

Serial Bankruptcy Filers

A serial bankruptcy filer is someone who repeatedly files bankruptcy, usually without completing, or even attempting to complete, their repayment plans. The Bankruptcy Court does not look fondly on these individuals and may impose consequences on them. This can include: 

• Placing limits on the automatic stay, which protects debtors from creditor actions after they have filed bankruptcy. If someone is a serial filer, the automatic stay may be shortened or even completely eliminated, thereby rendering the case moot. 
• Denying discharge. If a serial filer is believed to be acting fraudulently, the discharge of their debt may be denied.
• Filing criminal charges in cases where a serial filer has repeatedly filed without attempting to complete their payment plan.   This is rare, but a possibility for egregious cases.

These consequences should not dissuade you from filing bankruptcy again. As long as your need for bankruptcy is legitimate and you are filing in good faith, you need not fear being labeled as a serial bankruptcy filer. 

Seek Legal Advice for Repeat Filing

When considering repeat filing, the best thing you can do is consult an experienced bankruptcy attorney. We can best advise you on how to proceed, helping you to understand waiting periods and how to avoid being labeled as a serial filer. Please, do not hesitate to reach out to us today.