How Many Times Can You File for Bankruptcy in California?
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Can You File Bankruptcy More Than Once?
Filling bankruptcy is a great way to get a fresh financial start. Sometimes, however, people struggle to get back on their feet as they hoped after a bankruptcy discharge and may need to file bankruptcy again.
Luckily, there is no limit to how many times you can file for bankruptcy in California. Instead, the limit is on how often you can get a bankruptcy discharge. This means that there is a waiting period after your dischargeable debts are forgiven in bankruptcy before you can file bankruptcy again. This period starts from the original filing date and not the discharge date.
So if you are wondering, “Can I file for bankruptcy again?” The short answer is yes. The long answer depends on when your last successful bankruptcy was. If your initial filing was for Chapter 7, and you want to file for another Chapter 7, you will need to wait for eight years. On the other hand, if you previously filed for Chapter 13 and are seeking another Chapter 13 relief, you must wait for two years.
If you are considering filing for a second or subsequent bankruptcy in California, our attorneys at Chang & Diamond, APC, can help you.
Filing a Second Bankruptcy After Chapter 7
Chapter 7 bankruptcy is a type of bankruptcy where a court-appointed trustee sells some of your assets to pay creditors. If you received debt relief under this chapter, you will need to wait at least eight years before you can file again.
Chapter 7 to Chapter 13
If your first bankruptcy filing was for Chapter 7 bankruptcy and you wish to file for Chapter 13, the waiting time is four years.
Filing a Second Bankruptcy After Chapter 13
Chapter 13 to Chapter 7
If your previous bankruptcy discharge was under Chapter 13 and you want to file for bankruptcy under Chapter 7, you will need to wait for six years. This waiting period is mandatory unless:
- You repaid 100% of your unsecured debt under the plan
- You repaid 70% of your unsecured debt and can prove that your proposed repayment plan was your best effort and in good faith.
Do You Have To Wait Before Filing Bankruptcy if You Didn’t Receive a Discharge?
- Dismissed because you wilfully didn’t appear before the Bankruptcy Court or disobeyed a court order.
- Withdrawn following a claim by your creditors to lift the automatic stay
Chapter 20: The Exception to the Rule
As you have read so far, the waiting times are very long. If you are in a bad place financially, waiting may not be an option. This is where Chapter 20 may come in handy.
While not a real bankruptcy type, Chapter 20 refers to filing Chapter 13 immediately after your Chapter 7 is completed without a waiting period. This is possible because your subsequent Chapter 13 case will not grant you a discharge. Instead, it gives you the ability to suspend creditor claims or debt collections and reorganize your debt payments. Remember, waiting periods only apply to discharges and not filing.
By filing Chapter 13 following Chapter 7, you will gain up to five years to repay whatever debts you couldn’t discharge through Chapter 7.
This process is not easy and requires the help of bankruptcy professionals. If you are considering filing for both Chapter 7 and 13, consult an experienced bankruptcy lawyer from Chang & Diamond, APC, to make sure it is the right call.
Are You Considering a Second or Subsequent Bankruptcy in California?
The Bankruptcy Code allows multiple bankruptcy filings but imposes waiting periods between discharges. However, there are exceptions and workarounds that may apply to your case. It is crucial to involve a knowledgeable bankruptcy attorney to get personalized legal advice and assist you in preparing for bankruptcy.
Bankruptcy attorneys at Chang & Diamond, APC, handle bankruptcy cases of all types and sizes and will do everything possible to get you the bankruptcy relief you need to start fresh. We have been serving the Southern California community for more than two decades and have a proven track record of success.
Contact us to schedule a free consultation today.
Impact of Multiple Bankruptcy Filings on the Automatic Stay
One of the most significant protections granted in bankruptcy is the automatic stay, which immediately halts creditor collection actions upon filing. However, this protection may be limited or nonexistent in subsequent bankruptcy filings within a short period.
If you file a second bankruptcy within one year of a prior dismissed case, the automatic stay will last only 30 days unless you can prove to the court that the new filing is in good faith. Further, if you file multiple bankruptcies within the same year, the automatic stay may not take effect at all. In such cases, creditors can resume collection efforts unless the court determines otherwise.
To extend or reinstate the automatic stay, a debtor must present compelling evidence that the new filing is not an abuse of the system and that circumstances have significantly changed. Due to the complexities involved, working with an experienced bankruptcy attorney is crucial to navigating these rules and maximizing your legal protections.
Frequently Asked Questions
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How many times can you file for bankruptcy in California?
There is no fixed limit on how many times a person can file for bankruptcy in California, but federal bankruptcy law sets waiting periods between filings. How soon someone can file again often depends on the type of bankruptcy previously filed and the type being filed next.
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How long do you have to wait to file bankruptcy again after a previous case?
Waiting periods vary based on the bankruptcy chapter involved. For example, the time required between receiving a discharge in one case and being eligible for a discharge in a new case can depend on whether the prior filing was Chapter 7 or Chapter 13. These rules are set under federal law and apply nationwide, including in California.
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Can you file bankruptcy again if your prior case was dismissed?
Yes, it may be possible to file again after a dismissal, but timing and eligibility can depend on why the previous case was dismissed and whether the court imposed any restrictions. In some situations, repeat filings can also affect whether an automatic stay applies in the new case.
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What happens to the automatic stay if you file bankruptcy multiple times?
The automatic stay may be limited in repeat filings. If a person has had one bankruptcy case dismissed within the past year, the automatic stay may last only a short period unless extended by the court. If there have been multiple dismissals within the past year, the automatic stay may not apply automatically unless the court grants it.
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Are there risks to filing bankruptcy multiple times?
Multiple filings may result in increased court scrutiny, limited protections such as the automatic stay, and potential challenges in obtaining a discharge. Repeat filings can also increase costs and procedural requirements, depending on the circumstances of the case and prior bankruptcy history.
