Can I File Bankruptcy Again In New York?
If you have filed a bankruptcy case, you probably never want to file another bankruptcy. Even people who have the smoothest and easiest bankruptcy filing never want to be in the position of filing bankruptcy again. Unfortunately, some people need help from the bankruptcy court more than once in their adult lives.
Life is full of unexpected events that can result in a financial crisis. Events that can prevent a person from having the money to pay bills including unemployment, personal injury accidents, divorce, illnesses, loss of a spouse, and a failing business. Sadly, some people experience these types of events several times during their lives that result in financial hardships. Sometimes, they can recover from a financial crisis without the need of bankruptcy assistance but not always. For some, life events result in the need to file multiple bankruptcy cases.
Fortunately, there is no limit on the number of bankruptcies a person can file in the Bankruptcy Code. You can file bankruptcy as many times as you desire, provided you are not committing fraud. Unfortunately, the Bankruptcy Code does limit the number of bankruptcy discharges a debtor can receive within a certain time frame.
Limitations on The Number of Bankruptcy Discharges
The goal of filing a bankruptcy case is to receive a bankruptcy discharge. Your bankruptcy discharge relieves your legal liability to pay discharged debts. If you do not receive a bankruptcy discharge, you continue to owe the debts as if you never filed a bankruptcy case. In other words, there is no real benefit in filing a bankruptcy case unless you are eligible to receive a discharge.
While the Bankruptcy Code does not limit the number of bankruptcy cases you can file, it does limit the number of bankruptcy discharges you can receive within a certain time frame. Some attorneys refer to it as the 2-4-6-8 Rule. The 2-4-6-8 Rule factors in the chapter of bankruptcy you previously filed and the chapter of bankruptcy you wish to file to determine how long you must wait between filings to obtain a bankruptcy discharge.
- Filing a new Chapter 13 case after you filed a previous Chapter 13 case requires two years between filing dates to receive a discharge.
- If you filed a Chapter 7 case, you must wait four years between filing dates to file a new Chapter 13 case and receive a discharge.
- If you filed a Chapter 13 case and you want to file a Chapter 7 case now, you must wait six years between filing dates to receive a discharge.
- Filing a new Chapter 7 case after you filed a previous Chapter 7 case requires eight years between filing dates to receive a discharge.
Consult an Experience New York Bankruptcy Attorney
There may be exceptions to the above rules for multiple bankruptcy filings. Therefore, you should always consult with an experienced bankruptcy attorney to determine if you are eligible for another bankruptcy discharge. Furthermore, you want to make sure that filing another bankruptcy case is in your best interest.
Your financial situation may be much different from the last time you filed for bankruptcy relief. The changes since your previous bankruptcy filing could make filing a new bankruptcy case problematic. The last thing you want to do is to file a new bankruptcy case only to realize that your new filing does not benefit you.
Call a New York Bankruptcy Attorney for A Free Consultation
If you are struggling with debt that you cannot afford to pay, we want to help. Whether this is your first bankruptcy or you want to file bankruptcy again, call our office for a free case evaluation.
You can contact The Law Office of William W. Waldner by telephone at (212) 244-2882 to request a free appointment. You may also reach our Midtown Manhattan office by using the contact form on our website.