There is essentially no limit on how often an individual can file for bankruptcy. The real issue is that there is a limit to how often someone can receive a bankruptcy discharge, which is the reason many people file for bankruptcy. A discharge is when the bankruptcy court wipes out your debt, meaning you are no longer responsible for paying it. Below are the rules regarding how often someone can receive a St. Louis Chapter 7 or St. Louis Chapter 13 bankruptcy discharge:
- Once you receive a Chapter 7 discharge, you must wait 8 years before you are eligible for another Chapter 7 discharge. – (11 U.S.C. 727(a)(8))
- There must be two years between Chapter 13 discharges. -(11 U.S.C. 1328(f)(2))
- There must be four years between a Chapter 7 and Chapter 13 discharge -(11 U.S.C. 1328(f)(1))
- You must wait 6 years after receiving a Chapter 13 discharge to receive a discharge in a Chapter 7 (if under 70% of unsecured claims were paid in the Chapter 13). -(11 U.S.C. 727(a)(9))
A discharge is not the only reason to file for bankruptcy protection, however. Some individuals may file a Chapter 13 bankruptcy in order to stop a foreclosure sale or repossession regardless of whether they are entitled to receive a discharge at the end of the case. There can be a variety of reasons to file for Chapter 13 bankruptcy relief, since Chapter 13 offers powerful protection to debtors while allowing them the opportunity to repay debts, assuming they have not abused the bankruptcy process in the past.
Confused about whether you are eligible for a discharge? Call our expert St. Louis bankruptcy lawyers to set up a free consultation.