How Many Times Can I File for Bankruptcy in New York?

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Making the decision to file for bankruptcy is not something many come to lightly, as it can be an incredibly impactful and complicated process. As such, if you’re considering filing for a second time, you may wonder whether or not there is a limit on how many times you can undergo this process. The following blog explores what you should know about multiple filings and why working with a Newburgh bankruptcy lawyer is in your best interest during these difficult times.

What Are the Chapters of Bankruptcy I Can Pursue?

For consumers, there are generally two options when filing for bankruptcy. The first is Chapter 7. This is a liquidation process that focuses on selling nonexempt assets and property to pay off creditors. In order to qualify for Chapter 7, you must pass the means test. If your income is lower than the average for other similar-sized households in New York, you can proceed.

If your income is too high to qualify for Chapter 7 or you are worried about your assets, you may choose to pursue Chapter 13. This option reorganizes your debts into a repayment plan. Typically, you will make monthly payments to your creditor over a three to five-year period. At the end of your repayment plan, the remaining eligible debt is discharged.

Is There a Limit to How Many Times I Can File for Bankruptcy?

It’s important to understand that there are no restrictions on how many bankruptcy filings a person can pursue in their lifetime. As such, you can file for bankruptcy as many times as necessary.

Even though you can file bankruptcy as many times as necessary, it’s important to understand that there are some limitations in place. In order to prevent those who go through this process from filing another bankruptcy petition immediately to continually discharge debt after the closure of their last case, there are waiting periods in place. How long you must wait in between filings depends on the Chapter you filed previously and the one you intend to file now.

What Is the Waiting Period Between Filings?

It is imperative to understand that these waiting periods are only for those who want to have eligible debt discharged during the case. As such, it is possible, and potentially beneficial, to file for bankruptcy without receiving a discharge. For example, filing Chapter 13 can help you get on a repayment plan to fully pay off a creditor if you do not have the funds to make one large payment, but can make smaller monthly installments. However, you should consult an attorney before making this decision as it can be risky. These waiting periods for bankruptcy in order to have eligible debts discharged are as follows:

  • Chapter 13 to Chapter 13: 2 years
  • Chapter 13 to Chapter 7: 6 years
  • Chapter 7 to Chapter 7: 8 years
  • Chapter 7 to Chapter 13: 4 years

It’s important to understand that under the U.S. Bankruptcy Code, the clock starts on the day you previously filed your claim.

You should also note that some circumstances can impact your ability to pursue a filing. For example, if the court dismisses your case without a discharge because you failed to comply with court orders, you must wait 180 days before you can file again.

It’s no secret that bankruptcy can be an incredibly complicated process as there are a number of critical considerations you’ll need to make throughout this process. That is why it’s critical to discuss your legal options with an experienced attorney from the Law Offices of Michael D. Pinsky, P.C. Our team understands that this can be a nuanced process, so we will do everything possible to make it as simple as possible for you. Contact our firm today to learn more about your legal options if you’ve decided bankruptcy is in your best interest.

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