Yes, you can file for bankruptcy twice; however, there are limits to how often you can receive a discharge. The timetable is as follows: If you have waited the appropriate amount of time since your last bankruptcy, then the worst effect of filing twice will be the hit to your credit score. Bankruptcy usually affects high scores more than already low scores, so you may need to investigate for yourself how your credit will be impacted.
How Bad Is It to File Bankruptcy Twice?
Can You File Bankruptcy Twice? FAQs
Yes, it is possible to file for bankruptcy more than once. However, the timing between filings must comply with certain guidelines established by federal law in order to be approved by the court.
The minimum waiting period required between two filing of Chapter 7 is 8 years and 4 years for Chapter 13. It’s important to note that if your first filing was dismissed because of fraud or failure to appear in court, you may need to wait longer before filing again.
Attempting to file a second bankruptcy before the required waiting period is over can result in your filing being denied or dismissed. In some cases, the court may find that you acted in bad faith and deny any further bankruptcy filings for up to 10 years.
Filing for bankruptcy a second time can provide relief from debt that was not discharged in the first filing. It may also be beneficial if your income has increased since the last filing or your financial situation has changed significantly.
Yes, it is possible that your credit score will drop after filing for bankruptcy multiple times, however this is dependent on other factors such as using credit responsibly after filing. Additionally, your credit score will start to improve over time as you manage and pay off debts diligently.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.