What happens if you have multiple bankruptcy filings? Have you already filed for bankruptcy and are now thinking about filing again? Whether it is to stop a foreclosure, halt wage garnishment, or buy some time from collections, it is important to understand what happens when you file multiple bankruptcy cases. While filing again is legal, doing it repeatedly—especially if your previous case was dismissed—can seriously backfire and cost you crucial protections.
What Is Serial Bankruptcy Filing?
Serial bankruptcy filings refer to submitting multiple bankruptcy cases within a short time, often within a few months, particularly if earlier cases were dismissed before completion. The bankruptcy system allows multiple bankruptcy filings but has safeguards to prevent abuse.
For example, if you filed Chapter 13 but missed payments or failed to submit required court documents, your case might get dismissed. If you file again soon after, you trigger an automatic stay that temporarily stops creditors. However, if you have not followed through on your previous case, courts may limit your protections or take legal action against you.
How Does the Court Handle Multiple Bankruptcy Filings?
Each time you file bankruptcy after a prior case within the last year, the court expects you to prove that your situation has changed and that you are filing in good faith. Here is what you should know:
- If you had one prior filing in the last year, the automatic stay that stops creditors from collecting lasts only 30 days unless you show changed circumstances and good faith.
- If you had two or more dismissals in the last year, no automatic stay applies unless you file a special motion proving your case has merit and good faith.
- Without the automatic stay, creditors can continue collections, foreclosures, sheriff sales, and lawsuits even while your new bankruptcy case is active.
Legal Risks of Multiple Bankruptcy Filings
Multiple bankruptcy filings that appear to abuse the system can lead to serious consequences. Courts are cracking down on repeat filers who misuse bankruptcy protections. For example, in one case, a woman filed for bankruptcy five times in six years to stop foreclosure but never completed a repayment plan or filed honestly. This resulted in a bankruptcy fraud investigation and a federal prison sentence.
Most people filing multiple bankruptcies are not trying to commit fraud—they are often scared and overwhelmed. But filing again without proper legal advice can cause you to lose important protections and possibly face investigations.
How Soon Can You File Bankruptcy Again?
There are mandatory waiting periods between bankruptcy discharges based on the chapters filed previously. These waiting periods are measured from the date of your last filing to your next filing:
- If you filed Chapter 7 and want to file Chapter 7 again, you must wait 8 years.
- If you filed Chapter 13 and want to file Chapter 7, you must wait 6 years.
- If you filed Chapter 7 and want to file Chapter 13, you must wait 4 years.
- If you filed Chapter 13 and want to file Chapter 13 again, you must wait 2 years.
- Filing too soon risks having your new case dismissed and leaving you responsible for all your debts.
Should You File Bankruptcy Again?
Filing bankruptcy, a second or even third time, can be valid depending on your circumstances. But it should never be done without a clear strategy that takes your financial history, income, expenses, and changed situation into account.
Considering Multiple Bankruptcy Filings? What to Do Next
If you are overwhelmed by debt and consider multiple bankruptcy filings, do not do it alone. Review your full financial picture and plan carefully to ensure your next filing is done in good faith and maximizes your protections.
Take control of your financial future today. Reach out for a free, confidential consultation to explore your options and get a clear path forward. Do not wait until the pressure builds—get the help you need to move forward with confidence.