Filing for bankruptcy can be a life-changing step toward financial recovery. But what happens if you’ve already filed in the past and find yourself struggling with debt again? For many Savannah residents facing ongoing financial stress, the question arises: Can I file for bankruptcy more than once? The answer is yes, but with some important restrictions.
Navigating the intricacies of re-filing for bankruptcy can be complex, and it’s important to have clear, reliable information. This blog post aims to shed light on what Georgia law says about filing bankruptcy more than once, focusing on the common Chapter 7 and Chapter 13 options, and how these rules might apply to your situation.
Reach out to us today to discuss your circumstances and explore the path forward. Visit our comprehensive bankruptcy services page to learn more about how we can assist you.
Understanding the Basics: Chapter 7 and Chapter 13
Before diving into the specifics of re-filing, it's helpful to briefly review the two main types of personal bankruptcy available to Georgia residents:
- Chapter 7 Bankruptcy: Commonly referred to as "liquidation" bankruptcy, Chapter 7 can discharge most unsecured debts like credit card debt, medical bills, and personal loans. To qualify, you must pass a "means test," which evaluates your income and expenses to determine if you truly cannot afford to repay your debts. The process is generally quicker, often concluding within 3-6 months.
- Chapter 13 Bankruptcy: This is a "reorganization" bankruptcy that allows individuals with a regular income to create a repayment plan, typically lasting three to five years. Chapter 13 is often chosen by homeowners who want to stop foreclosure and catch up on mortgage payments, or by those who have non-exempt assets they wish to keep. After successfully completing the repayment plan, remaining dischargeable debts are eliminated.
Both offer significant relief, but the waiting periods for re-filing depend on which type you filed previously and which type you intend to file next.
Waiting Periods for Re-filing Bankruptcy in Georgia
The federal bankruptcy code does allow for multiple filings, but sets specific timeframes that must pass between bankruptcy filings if you wish to receive another discharge of your debts. These periods are crucial to understand, as filing too soon might mean you don't receive the full benefits of a new bankruptcy case.
Here's a breakdown of the typical waiting periods, calculated from the filing date of your previous case:
- Chapter 7 to Chapter 7: If you received a discharge in a Chapter 7 bankruptcy, you generally must wait eight years from the date you filed your previous Chapter 7 case before you can file another Chapter 7 and receive a discharge.
- Chapter 13 to Chapter 13: If you successfully completed and received a discharge in a Chapter 13 bankruptcy, you typically must wait two years from the date you filed your previous Chapter 13 case to file another Chapter 13 and receive a discharge.
- Chapter 7 to Chapter 13: If your previous bankruptcy was a Chapter 7 discharge, you generally need to wait four years from the Chapter 7 filing date before you can file a Chapter 13 case and receive a discharge.
- Chapter 13 to Chapter 7: If you received a discharge in a Chapter 13 bankruptcy, you typically must wait six years from the date you filed your previous Chapter 13 case to file a Chapter 7 and receive a discharge. However, there are exceptions. If in your prior Chapter 13 case you paid back 100% of your unsecured debts, or if you paid at least 70% of your unsecured debts under a plan proposed in good faith and with your best effort, you may not have to wait the full six years.
It’s important to note that these waiting periods apply to receiving a discharge of your debts. You might be able to file sooner in some instances if your primary goal isn't a discharge, but rather to benefit from the automatic stay (which temporarily stops creditor actions like foreclosure or repossession). However, quickly re-filing can lead to limitations on the automatic stay or increased scrutiny from the court, so professional guidance is essential.
Why Would Someone File for Bankruptcy More Than Once?
Life is unpredictable, and new challenges can arise even after successfully navigating a previous bankruptcy. For homeowners in Savannah, unexpected circumstances can quickly lead to renewed financial distress. Some common reasons include:
- Job Loss or Significant Income Reduction: A sudden job loss, a substantial cut in hours, or an unexpected pay reduction can quickly derail even the most carefully planned financial recovery.
- Unexpected Medical Expenses: A serious illness or accident, especially without adequate insurance, can lead to overwhelming medical debt that a previous bankruptcy didn't address.
- Divorce or Separation: The financial implications of a divorce, including child support, alimony, or division of assets and debts, can create a new financial burden.
- Failed Debt Management Plans: Sometimes, individuals attempt other debt relief methods after a bankruptcy, such as debt consolidation or negotiation, which ultimately prove unsustainable.
- New Debt Incurred: Life events, such as purchasing a new vehicle or taking on a mortgage after a previous bankruptcy, can create new debts that become unmanageable if other financial setbacks occur.
- Undischarged Debts from Previous Filings: Not all debts are dischargeable in bankruptcy. If significant non-dischargeable debts (like certain tax obligations or student loans) remain, new financial hardship can make them even more difficult to manage.
These situations highlight that re-filing is often a response to unforeseen challenges, not a misuse of the system. The law recognizes that people can face recurring financial distress.
Impact of Multiple Filings on Your Financial Future
While the law allows for multiple bankruptcy filings, it's wise to consider the potential efffect on your credit and future financial endeavors. Each bankruptcy filing remains on your credit report for a significant period – up to 10 years for Chapter 7 and 7 years for Chapter 13. Multiple filings can signal increased financial risk to potential lenders, making it more challenging to obtain new credit, mortgages, or even certain types of employment in the short term.
However, it's also true that for many, the immediate relief and fresh start provided by bankruptcy outweigh these longer-term credit implications. The goal is to regain financial stability and work towards a healthier financial future.
Your Path Forward: Seeking Experienced Guidance
The rules surrounding multiple bankruptcy filings in Georgia are nuanced. Determining your eligibility, understanding the waiting periods, and deciding which chapter is most appropriate for your current situation requires a thorough analysis of your financial circumstances. Attempting to navigate these complexities alone can lead to errors that could delay your discharge or even result in your case being dismissed.
At Barbara B. Braziel Attorney At Law, we are dedicated to providing reliable legal counsel to homeowners and individuals in Savannah and the surrounding areas. We take the time to listen to your story, assess your unique financial situation, and explain all available options clearly and compassionately. We aim to help you make informed decisions that lead to the best possible outcome for your financial well-being.
If you are exploring your legal options for relief, we are here to help. Reach out to Barbara B. Braziel Attorney At Law today for a confidential consultation. We can be reached via our online contact form or by calling us at (833) 522-1069. Let us help you find the path to a more stable financial future.