How Often Can You File Bankruptcy in Alabama

• Chapter 7 Bankruptcy– If you need to file for Chapter 7 bankruptcy after you have filed a previous Chapter 7 bankruptcy and received a discharge, then you need to wait 8 years from the date you filed your previous Chapter 7 bankruptcy. If you file prior to the 8-year period, then you will be denied a discharge. If you are denied a discharge, then you will still be legally responsible for your debts. You start to count the 8 years from the date you filed your previous Chapter 7 bankruptcy. If you filed your previous Chapter 7 bankruptcy in July of 2000, then you are eligible to file again and get a discharge in July 2008.

• Chapter 13 Bankruptcy– So, how does Chapter 13 bankruptcy work? Well, if you need to file for Chapter 13 bankruptcy after you have obtained a discharge in a previous Chapter 7 bankruptcy, then you will need to wait 4 years to obtain a complete discharge. In order to discharge your credit card debts, medical bills, and personal loans, you need to wait 4 years from the date you filed your Chapter 7 bankruptcy. If you file within 4 years of your previous Chapter 7 bankruptcy, then your unsecured debts will not be discharged. This time limit only applies if you obtained a discharge in your previous Chapter 7 bankruptcy. The 4-year period begins to run from the date you filed your previous Chapter 7 bankruptcy. This means that if you filed in February of 2000, then you would be eligible for a Chapter 13 bankruptcy discharge in February of 2004.

• Chapter 7 Bankruptcy—If you received a discharge in your previous Chapter 13 bankruptcy and you need to file Chapter 7 bankruptcy, then you will need to wait 6 years from the date of filing your Chapter 13 bankruptcy to receive a full discharge. You can obtain a full discharge of your debts in a Chapter 7 bankruptcy, even if you file within 6 years, but you must have paid your unsecured creditors 70% or more during your previous Chapter 13 bankruptcy. If you did not pay your unsecured creditors at least 70% during your previous Chapter 13 bankruptcy, and you file for Chapter 7 bankruptcy within 6 years of filing Chapter 13, then you will not be entitled to a discharge. You must wait at least 6 years from the date of filing your previous Chapter 13 bankruptcy to file for Chapter 7 bankruptcy and receive a discharge (unless the exception applies).

• Chapter 13 Bankruptcy – If you have received a discharge in a previous Chapter 13 bankruptcy and need to file Chapter 13 bankruptcy again, then you need to wait at least 2 years from the date of filing of your previous Chapter 13 bankruptcy. If you file within 2 years of filing your Chapter 13 bankruptcy, then you will not be entitled to a discharge in your new bankruptcy case.

How Often Can You File Bankruptcy? Frequently Asked Questions

The following FAQs provide general information about repeat bankruptcy filings. Waiting periods and eligibility depend on your specific circumstances and current bankruptcy law.

How often can you file bankruptcy in Alabama?

There is generally no absolute lifetime limit on the number of bankruptcy cases a person may file. However, waiting periods can determine whether the person is eligible to receive another discharge.

What determines when I can receive another bankruptcy discharge?

The answer depends on the chapter filed previously, the chapter being filed now, whether the prior case resulted in a discharge or dismissal, and the filing date of the earlier case.

How long must I wait between two Chapter 7 discharges?

A debtor generally must wait eight years from the filing date of the earlier Chapter 7 case before filing another Chapter 7 case and receiving a new discharge.

How long must I wait to file Chapter 13 after a Chapter 7 discharge?

A debtor generally must wait four years from the filing date of the earlier Chapter 7 case to receive a Chapter 13 discharge.

How long must I wait to file Chapter 7 after a Chapter 13 discharge?

A debtor generally must wait six years from the filing date of the earlier Chapter 13 case to receive a Chapter 7 discharge, although an exception may apply when qualifying payments were made to unsecured creditors in the prior Chapter 13 case.

How long must I wait between Chapter 13 discharges?

A debtor generally must wait two years from the filing date of the earlier Chapter 13 case before receiving another Chapter 13 discharge.

Can I file bankruptcy again before the waiting period expires?

A person may sometimes file another case before becoming eligible for a new discharge. Whether filing is useful depends on the person's goals, the automatic stay, the treatment of debts, and the facts of the case.

What happens if I file too soon for another discharge?

The bankruptcy case may proceed, but the debtor may be denied a discharge of debts in the new case if the statutory waiting period has not expired.

Do the waiting periods run from the discharge date?

The principal waiting periods are generally measured from the filing date of the earlier bankruptcy case, not the date the discharge was entered.

Can I file again if my prior bankruptcy was dismissed?

A person may often file again after dismissal, but a prior dismissal can affect eligibility, the automatic stay, or the timing of a new case.

What is a dismissal with prejudice?

A dismissal with prejudice may restrict a debtor from refiling for a specified period or may affect the dischargeability of debts, depending on the court's order.

What happens to the automatic stay in a repeat bankruptcy filing?

The automatic stay may be limited or may not arise automatically when one or more bankruptcy cases were pending and dismissed during the prior year.

Can a repeat bankruptcy stop foreclosure or repossession?

A repeat filing may provide automatic-stay protection in some circumstances, but prior dismissals can limit that protection.

What is a Chapter 20 bankruptcy?

Chapter 20 is an informal term used when a person files Chapter 13 after receiving a Chapter 7 discharge. It is not a separate chapter of the Bankruptcy Code.

Can I file Chapter 13 even if I am not eligible for a discharge?

In some circumstances, a Chapter 13 case may still help manage secured debts or cure arrears even when the debtor is not eligible for a new discharge.

Do I need records from my previous bankruptcy?

Yes. Helpful records include the prior case number, filing date, chapter, discharge or dismissal order, and any order restricting refiling.

Will a prior bankruptcy affect my means test?

A prior bankruptcy can affect eligibility and strategy, but the means test is a separate calculation based largely on current monthly income and allowed deductions.

Can a bankruptcy court deny a repeat filing for bad faith?

Yes. Bankruptcy courts may dismiss cases, limit the automatic stay, deny discharge, or impose other remedies when a case is filed in bad faith.

Should I file again just because I am eligible?

Eligibility alone does not mean filing is the best option. An attorney should review your current financial situation before another filing.

Does Ferguson & Ferguson offer free consultations about repeat bankruptcy filings?

Yes. Ferguson & Ferguson offers free bankruptcy consultations through its Huntsville and Decatur offices.

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