Many people assume that bankruptcy is a one-time option. In reality, California law does allow individuals to file for bankruptcy more than once. However, there are strict rules about how much time must pass between filings and what type of discharge you can receive the second time around. If you are a resident of Eastvale who has filed for bankruptcy in the past and find yourself struggling with debt again, Law Offices of Terrence Fantauzzi can help you understand your options.
How long do I have to wait before filing again?
The waiting period between bankruptcy filings depends on which chapters were involved in your previous and current cases. Here is a general breakdown of the most common scenarios:
If you received a Chapter 7 discharge in your previous case, you must wait eight years from the date of that filing before you can receive another Chapter 7 discharge. If you want to file Chapter 13 after a Chapter 7 discharge, the waiting period is four years from the date of your previous filing.
If your previous case was a Chapter 13 and you want to file Chapter 13 again, the waiting period is two years from the date of the prior filing. If you previously filed Chapter 13 and now want to file Chapter 7, the waiting period is six years from your prior filing date, with some exceptions based on how much you paid back to unsecured creditors in your Chapter 13 plan.
What if my previous case was dismissed rather than discharged?
A dismissal is different from a discharge. If your previous bankruptcy case was dismissed — meaning it was thrown out before you received a discharge — the waiting period rules are different. In many cases, you may be able to refile relatively quickly. However, if your case was dismissed because you failed to comply with court orders or voluntarily dismissed your case after a creditor filed a motion for relief from the automatic stay, you may face a 180-day waiting period before refiling.
It is also worth knowing that multiple filings within a short period can affect the automatic stay. If you file a second case within a year of a prior dismissal, the automatic stay may only last 30 days unless you take steps to extend it. If you have had two or more cases dismissed within the past year, the automatic stay may not go into effect at all without a court order.
Can I still file even if I am not yet eligible for a discharge?
In some situations, filing for bankruptcy before the waiting period has expired may still be worthwhile, even if you cannot receive a discharge right away. For example, filing Chapter 13 can still trigger the automatic stay and allow you to set up a repayment plan to catch up on mortgage arrears or other priority debts, even if you are not yet eligible for a full discharge. An attorney can help you evaluate whether this strategy makes sense for your situation.
What should I do if I am considering filing again?
The most important step is to speak with an experienced bankruptcy attorney before taking any action. Refiling without understanding the timing rules and their impact on your case can lead to costly mistakes, including losing the protection of the automatic stay.
At Law Offices of Terrence Fantauzzi, we work with Eastvale residents who are navigating the bankruptcy process for the first time and those who have been through it before. We will review your previous case, your current financial situation, and your goals to help you determine the best path forward.
Call (909) 552-1238 today to schedule a consultation.
