Life can get harder more easily than one would think. A job loss, unexpected medical expenses or economic shift can derail even the best financial plans. If you have already filed for Chapter 7 bankruptcy, you might wonder whether you can seek the same relief again if you face similar financial challenges in the future.
Key filing and discharge factors
There is no legal limit for how many times you can file for bankruptcy. However, strict federal laws dictate how often you can receive a discharge, the court order that erases your eligible debts. Knowing the important waiting periods between filing is essential for planning the next steps, such as:
- Chapter 7 to Chapter 7: You generally have to wait eight years from the first Chapter 7 filing date to receive a new discharge in a new Chapter 7 filing.
- Chapter 7 to Chapter 13: If you have already filed Chapter 7, there is a four-year waiting period from the filing date to get a discharge in a subsequent Chapter 13 bankruptcy.
- Chapter 13 to Chapter 7: If you have already filed Chapter 13, you generally have to wait six years from the filing date to receive a Chapter 7 discharge. This waiting period might be waived if you paid back at least 70% to 100% of your unsecured debts.
- Filing without a discharge: If your first case is dismissed without a discharge, the wait time might be shorter. However if the dismissal was due to non compliance or failure to follow court orders, you would have to wait at least 180 days before filing again.
While these discharge frameworks are standard under federal law, the property protections are local. Indiana has opted out of federal bankruptcy exemptions. Therefore, when filing for Chapter 7 in Indiana, you should use Indiana‘s state exemption laws to protect your home, vehicle and personal property from liquidation.
Protecting your assets
A past bankruptcy doesn’t permanently bar you from financial relief. Understanding these timelines keenly with the help of an experienced Indiana attorney could help you with the next filing and protect your rights.
