How Many Times Can You File for Bankruptcy in Pennsylvania?

Filing for bankruptcy provides relief from financial distress and debt, but how often can you benefit from that relief? If you filed for bankruptcy in the past, call our lawyers to see whether or not you can file again now or if you may have to wait longer.

You may file for bankruptcy multiple times, though there are mandatory waiting periods between filings. These waiting periods sometimes last years. If your case is dismissed, you can likely refile immediately with our help. While you can file for bankruptcy many times, there are consequences potential consequences of doing so, which our lawyers can explain. If your initial bankruptcy case is successful, you can avoid future financial distress.

Call Young, Marr, Mallis & Associates at (215) 701-6519 for a free case analysis from our Pennsylvania bankruptcy lawyers.

Can You File for Bankruptcy Multiple Times in Pennsylvania?

There’s no limit on how many times you can file for bankruptcy in your life, though you may have to wait between filings. Bankruptcy is a legal tool designed to help people regain their financial footing, and you can reap the benefits of it time and time again.

That said, if you navigate bankruptcy right the first time, you should not have to file again anytime soon. When you exit bankruptcy, all dischargeable debts should be erased, and you should have repaid any non-dischargeable debts, whether through asset liquidation or a repayment plan.

There are downsides to having to file for bankruptcy multiple times in a relatively short period. Though bankruptcy helps you get out of debt, it also negatively affects your credit score, which might already be in freefall because of your financial situation.

Bankruptcies also remain on your credit report for several years, and having multiple bankruptcy filings back-to-back could make it harder to get approved for credit cards, mortgages, or anything from lenders.

Do You Have to Wait a Specific Time Between Bankruptcy Filings in Pennsylvania?

While you can file for bankruptcy as many times as you need to, there are mandatory waiting periods between filings. For example, if you have previously filed Chapter 7 and wish to file it again, you must wait eight years from the initial filing date to do so and get a discharge.

This long wait period exists because many debts are quickly discharged in Chapter 7 cases, and mandating eight years between filings helps prevent the abuse of debt discharges.

If you previously filed a Chapter 7 case and now want to file Chapter 13, you must wait four years from the initial filing date to refile and get a discharge. While Chapter 7 requires the liquidation of assets, Chapter 13 employs repayment plans that debtors follow over the next three to five years, hence the shorter mandatory waiting period between these filings.

There is no mandatory waiting period between Chapter 13 cases and a new Chapter 7 case where all debts (or at least 70% with best efforts) are paid. If you did not pay off your Chapter 13 in full, you have to wait six years. And, if you previously filed Chapter 13 and need to again, you only have to wait two years.

Can You Refile for Bankruptcy if Your Case Gets Dismissed?

Bankruptcy cases might get dismissed when debtors don’t comply with repayment plans or liquidation requirements. Creditors might even petition the court to dismiss a bankruptcy case so they can pursue litigation, garnish wages, or continue other intense debt-collection efforts.

If your case gets dismissed, you may not have to wait until you refile it. However, if you refile within the same year, the automatic stay may only remain in effect for 30 days. The automatic stay prevents creditors from garnishing your wages, sending threatening communications, and foreclosing your house or repossessing your car.

Our Philadelphia bankruptcy lawyers may be able to extend the automatic stay in these cases by filing motions in court, even if debtors have had bankruptcy cases dismissed multiple times in the past year.

How Can You Avoid Having to File for Bankruptcy Many Times in Pennsylvania?

Each time you file for bankruptcy, your credit score lowers. Avoiding more bankruptcy filings in the near future is possible when you approach your initial case the right way. Properly organizing debts, filing the right bankruptcy chapter, taking credit counseling courses, and completing your initial case help set you up for success.

Organize Debt

We can make sure all your current debts are included in your bankruptcy case. Let us organize your debts, list them out, identify creditors, and prepare all necessary financial information for your bankruptcy petition and the case that follows.

We will explain which debts are dischargeable and which aren’t and what that means for your case.

File the Right Chapter

Filing the appropriate bankruptcy chapter also helps your initial case succeed. We will determine whether Chapter 7 or 13 is right for you based on the type of debt you have, the size of it, your income, and your expenses. We can then prepare and file the right bankruptcy petition for your chapter to initiate the case.

Take Credit Counseling Courses

You must take credit counseling courses within 180 days of filing for bankruptcy in Pennsylvania. Take advantage of these courses, which teach strategies for managing money and avoiding falling back into debt.

Complete Your Initial Case

By completing your initial bankruptcy case, you may avoid future filings. We can include all creditors and debts in your first filing and prepare a repayment or liquidation plan that provides long-term relief. If debtors agree to unfair repayment plans, they may struggle to meet the terms, which could lead to case dismissals and other issues.

Let us work on your initial bankruptcy case in Pennsylvania. We will waste no time in reviewing your debts, preparing the bankruptcy petition, and devising the best path of repayment for you.

Call Our Bankruptcy Attorneys in Pennsylvania Now

Call Young, Marr, Mallis & Associates at (215) 701-6519 for a free case review from our Bucks County, PA bankruptcy lawyers today.