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Can I File for Bankruptcy in Pennsylvania if I’ve Filed Before?

If your finances have become too much to handle on your own, you can file for bankruptcy for relief. However, you likely worry that this option will not be available to you if you filed for bankruptcy before.

Fortunately, Pennsylvania does not put a set limit on the number of times a person can file for bankruptcy. If you have filed for Chapter 7 or Chapter 13 bankruptcy in the past, you can still file again if times get tough. However, you might have to wait several years before you will be able to file. Our attorneys can help you determine how long you are likely to wait as we prepare your new case. If the court dismissed your previous case, you might not need to wait at all. Our team can also help extend automatic stays if you are filing for another time in the same year.

Call our Pennsylvania bankruptcy attorneys at Young, Marr, Mallis & Deane at (609) 755-3115 for your free case evaluation.

How Long Do I Have to Wait to File for Bankruptcy in Pennsylvania if I Filed in the Past?

Individuals who have filed for bankruptcy in the past might wonder if they can file again in Pennsylvania if they find themselves in more financial trouble. The short answer is yes. People in Pennsylvania can file for bankruptcy again even if they have filed in the past.

However, how long you have to wait before filing again will depend on a few factors, like what type of bankruptcy you filed before and what you would like to file now. Our Philadelphia bankruptcy lawyers can determine when your previous case was filed and how long you will need to wait before filing your new one. If you do need to wait, our team can arrange your financial disclosures in the meantime. The following will explain exactly how long you must wait before filing again in Pennsylvania:

When You Previously Filed for Chapter 7 Bankruptcy

Many people file for Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, as a straightforward method of discharging their debts. If you need to file Chapter 7 bankruptcy but filed for Chapter 7 before, eight years must pass from the date your previous case was filed before filing a new case. While Chapter 7 bankruptcy generally stays on a person’s credit report for ten years, you will be permitted to file two years before the discharge is removed from your record.

If you filed for Chapter 7 in the past but now plan on filing for Chapter 13 bankruptcy, you will only need to wait four years from the date you filed for Chapter 7. Chapter 13 bankruptcy is much different than Chapter 7. Instead of liquidating a debtor’s assets to satisfy their debts, the debtor creates a repayment plan to repay the debts over a three to five-year period. Thus, you do not need to wait as long if filing for Chapter 13 bankruptcy.

When You Previously Filed for Chapter 13 Bankruptcy

If you previously filed for Chapter 13 bankruptcy the first time in court, you can generally file for Chapter 7 bankruptcy after six years. However, you might be able to file sooner. As mentioned, Chapter 13 uses a repayment plan rather than liquidation to pay a person’s debts. If you satisfy the plan and repay all your unsecured debts in the time given, you can file for Chapter 7 bankruptcy in less than six years. It should also be noted that you can apply for Chapter 13 bankruptcy even if you did not receive a discharge in your Chapter 7 case.

For those filing Chapter 13 bankruptcy for the second time, the waiting period is two years. However, if you paid off at least 70% of your unsecured debts and made a good-faith effort to pay the remaining amount, you might be able to file for Chapter 13 bankruptcy before two years have passed.

How Long Will I Need to Wait if My First Bankruptcy Filing Was Dismissed by the Court in Pennsylvania?

The timeframes discussed above typically only apply to bankruptcy filings that were accepted by the court. However, the court might have dismissed your case before initiating the process. Bankruptcy cases are complex, and cases are often dismissed because a document was not filed, trustees were not paid, or the debtor had no real plan to repay their debts.

Fortunately, you will usually not need to wait long before filing your bankruptcy claim again. Regardless of which type of bankruptcy you are filing for, you should be able to immediately refile. However, you might have to wait up to 180 days before refiling if the court makes an order against you for failing to obey it in some way.

The problem with refiling a bankruptcy case is that you might not get the full benefits of an automatic stay. Automatic stays are orders that put a stop to creditors’ and debt collectors’ collection attempts and lawsuits as soon as the bankruptcy filing has been approved by the court. For a first filing, no time limit is placed on the stay. If you are filing for bankruptcy a second time within the same year, your second automatic stay only lasts 30 days unless the court approves a motion to extend the stay that has some evidence that your case will be successful, like financial records.

After the second bankruptcy filing, no automatic stay will go into effect upon the third filing in the same calendar year. To get an automatic stay in these situations and put a stop to debt collectors’ harassment, you will need to file a motion to impose an automatic stay. However, the court will not approve the motion if you cannot provide evidence that you are in a better financial position than before.

When Should I Consider Filing for Bankruptcy Again in Pennsylvania?

The reasons you might file for bankruptcy again could be the same reasons as before. For instance, if you had overwhelming credit card or medical debts, you might have filed for Chapter 7 bankruptcy to discharge those debts. You might need to file for Chapter 7 again if rent has gone unpaid or you suffered an injury and have new medical debt.

However, Chapter 13 bankruptcy might be a better option this time if your financial situation is better than the last time you filed. It would also allow you to keep your assets where some might have been discharged in your previous case.

Of course, the reverse could be true. You might not have the financial resources to complete a Chapter 13 repayment plan over a few years and simply want to discharge your debts through Chapter 7 and move on.