Life can be unpredictable. Many people who receive a bankruptcy discharge may later face new financial hardships, requiring them to seek bankruptcy protection again. If you’ve previously filed for bankruptcy and are struggling with debt once more, you may be wondering how often you can file for bankruptcy and what happens if you do. While you can file bankruptcy multiple times, every situation is different; it is important to understand, the different types of cases, specific strategies in filing multiple cases, like Gap Cases and Chapter 20 cases, and the details of your specific situation.

Filing Chapter 7 multiple time is not typically an issue, as long as more than 8 years pass between filing. Usually the issues with refiling bankruptcy have to do with multiple cases within an 8 year period or multiple cases that all end without a discharge.

How Many Times Can You File Bankruptcy?

There is no legal limit to how many times you can file for bankruptcy. However, discharge rules restrict how frequently you can receive a discharge—the court order that eliminates certain debts. These rules depend on the type of bankruptcy you filed previously and the type you intend to file next.

Discharge waiting periods are calculated filing date to filing date (not discharge debt or case closure date).

Understanding Discharge Limitations

1. Chapter 7 after Chapter 7: You must wait 8 years between filings.
2. Chapter 13 after Chapter 13: You must wait 2 years between filings.
3. Chapter 7 after Chapter 13: You must wait 6 years unless you paid most of your debts in the previous Chapter 13.
4. Chapter 13 after Chapter 7 (Gap Case): You must wait 4 years for a discharge, though you can file sooner without receiving one.

Even if a discharge isn’t possible, Chapter 13 can still provide relief by restructuring secured debts and stopping collection actions through the automatic stay.

Common Misconceptions About Filing Multiple Bankruptcies

There are many myths surrounding multiple bankruptcy filings. Let’s clear up some common misconceptions:

• “Filing multiple bankruptcies is not allowed.” – Not true. There is no law limiting how many times you can file, although there are restrictions on how frequently you can receive a discharge.
• “The court won’t approve my case if I’ve filed before.” – Courts review repeated filings carefully but will approve cases filed in good faith.
• “Filing again will ruin my credit forever.” – Multiple filings may affect your credit, but rebuilding is possible through responsible debt management, secured credit cards, and regular credit monitoring.

Filing Multiple Chapter 7 Cases 

For clients who have already received a Chapter 7 discharge, filing another Chapter 7 after the required 8-year waiting period is not unusual. In fact, this is a common and accepted practice for individuals who encounter new financial challenges years after their initial case. Many people find themselves needing debt relief again due to circumstances such as job loss, illness, divorce, or other significant life events. Even on your bankruptcy petition, your second bankruptcy case is not disclosed as long as 8 years or longer has passed.

Why Filing Another Chapter 7 Isn’t an Issue

• Legal and routine: The Bankruptcy Code allows for multiple Chapter 7 filings as long as the 8-year filing-to-filing rule is followed. Courts do not treat subsequent Chapter 7 filings any differently from first-time cases, provided that the filing meets all legal requirements.
• Fresh financial struggles: It’s not uncommon for debtors to face new debts and financial problems over time. Whether it’s unexpected medical bills or losing income, a second Chapter 7 case can provide necessary relief.
• Similar benefits: Just like the first time, filing Chapter 7 again can eliminate unsecured debts like credit card balances and medical bills, giving clients another opportunity to rebuild their financial stability.

Example: Filing Chapter 7 Again

A client received a Chapter 7 discharge 9 years ago, wiping out $40,000 in credit card debt. Over the years, they accumulated new debts after losing a job and dealing with medical emergencies. Filing another Chapter 7 allowed them to:

• Eliminate new credit card and medical debts.
• Protect their essential assets using Virginia’s updated exemptions.
• Begin rebuilding their credit again after discharge.

There was no additional scrutiny than a regular case because the 8 years had passed.

Good Faith Requirements for Multiple Filings

Courts closely scrutinize repeat bankruptcy filings within 8 years (or multiple Chapter 13 cases without discharge), particularly Gap Cases and other filings after a prior case was dismissed without a discharge. Judges want to ensure that the debtor isn’t abusing the system to delay payments or avoid responsibilities. This is why good faith is critical in all repeated bankruptcy filings, especially those within an 8 year period and/or when there have been many cases without a discharge.

What Does Good Faith Mean?

Good faith generally means that you are filing bankruptcy with honest intentions, good use of the bankrutpcy system, and a legitimate financial need. The bankruptcy court has to balance the interest of the creditors and the debt and ensure the filing is not an abuse of the system. Courts may look at the following factors to determine good faith:

• Whether your debts arose from circumstances beyond your control. For example, losing your job or facing high medical expenses may be seen as a legitimate reason to refile.
• Your plan to repay creditors. Your Chapter 13 plan must provide a meaningful distribution to creditors. Courts may reject plans that appear to offer little payment to creditors unless justified by your full situation.
• Past bankruptcy conduct. If you failed to comply with court orders, misrepresented your finances, or repeatedly filed cases without following through, the court may question your good faith.

Chapter 20 Cases: Filing Chapter 13 Immediately After Chapter 7

A Chapter 20 case refers to a strategy where you file Chapter 13 shortly after receiving a Chapter 7 discharge. In these cases, there is no discharge when a Chapter 13 is filed less than 4 years from the prior Chapter 7, but Chapter 13 can still be beneficial to catch up on secured debts and restructure payments, and also benefit from:

• Protecting your home from foreclosure
• Catching up on secured debts like mortgage and car loans
• Stopping creditor actions such as wage garnishments or lawsuits

The Automatic Stay and the protections from the bankruptcy apply, even when you do not qualify for discharge.

Example: Using Chapter 20 to Save a Home

Our client discharged unsecured debt through Chapter 7 but fell behind on their mortgage shortly after. This allowed the client to discharge all the credit card debt and personal loan debt to ensure they could focus on just the mortgage and any priority tax debt that remained. Filing Chapter 13 allowed them to:

• Stop foreclosure and keep their home.
• Spread missed payments over 5 years.
• Avoid additional collection efforts from other creditors.

The Chapter 20 can help ensure that the client only has limited debt left that would need to be paid during their Chapter 13 plan. Since there is no discharge in the Chapter 13 since it is shortly after the Chapter 7, the Court usually is focused on ensuring the Debtor can pay all required debt back during the plan.

Gap Cases: Filing Chapter 13 When You Can’t Wait 8 Years After Chapter 7

For many debtors, filing Chapter 7 bankruptcy provides a fresh start by eliminating most unsecured debts, such as credit card balances and medical bills. However, financial challenges can arise again before they are eligible to file another Chapter 7 case, which requires 8 years between filings. In these situations, filing a Chapter 13 Gap Case might be the best option.

Gap Cases typically occur between 4 to 7 years after a Chapter 7 discharge. If it has been at least 4 years, but not yet the 8 years, you can qualify for a discharge for any unpaid, dischargeable debt after the end of the plan. However, these cases face heightened court scrutiny to ensure they are filed in good faith.

Why Are Gap Cases Heavily Scrutinized?

Courts want to prevent debtors from filing a Chapter 13 case simply to “stall” creditors until they become eligible for a second Chapter 7 discharge. As a result, judges closely examine whether:

1. The debtor has a legitimate financial reason to file. This could include major financial setbacks, such as job loss, medical expenses, or unexpected increases in living costs.
2. The debtor is providing a meaningful payment to creditors. Since you are getting discharge, your repayment plan must offer a reasonable distribution to creditors. The court will expect you to pay disposable income into the plan over its 3- to 5-year term. The lower the percentage plan, the less good faith it would appear.
3. The debtor is honest and transparent. Courts will look for signs of abuse, such as hiding assets or repeatedly filing bankruptcy cases without following through on repayment plans.

How to Demonstrate Good Faith in a Gap Case

When filing bankruptcy again for a second time within only a few years, the court always takes a second look. To satisfy the court’s concerns, you and your attorney should prepare a strong case showing that:

• New financial challenges have made the filing necessary. For example, if you’ve fallen behind on mortgage or car payments due to job loss or rising expenses, provide documentation such as pay stubs, medical bills, or letters from creditors.
• You’ve made efforts to address your debts outside of bankruptcy. Showing that you’ve tried to negotiate with creditors or made partial payments before filing can demonstrate that bankruptcy is a last resort.
• The repayment plan is feasible and fair. The court will want to see a plan that reflects your current income and expenses, with realistic monthly payments to creditors.

Example: Gap Case Filing with Good Faith
A client discharged $60,000 in unsecured debt through Chapter 7 four years ago but fell behind on mortgage payments after a layoff. Faced with foreclosure, they filed a Chapter 13 Gap Case. To demonstrate good faith, we presented:

• Evidence of job loss and new employment with a lower salary.
• The Debtor’s desire to preserve his mortgage and equity and no other way to save his home.
• A repayment plan that included catching up on missed mortgage payments over five years.
• A budget showing they were contributing all disposable income to the plan.

What Happens If Good Faith Is Not Demonstrated?

If the court finds that your filing lacks good faith (or your plan lacks good faith), it may:

• Dismiss the case, allowing creditors to resume collection efforts.
• Require a hearing to assess whether the plan can proceed.
• Require a new plan that provides additional payment terms to the creditors.

The scrutiny that these cases face is one of the many reasons why it’s critical to work with an experienced bankruptcy attorney who can help you prepare a strong case that meets the court’s expectations.

Liquidation (Best Interest) Test in Chapter 13

In any Chapter 13, your plan must pass the liquidation test, also known as the best interest of creditors test. This test ensures that creditors receive at least as much in Chapter 13 as they would if your non-exempt assets were liquidated in Chapter 7.

For example, if you own a home with significant non-exempt equity, your Chapter 13 plan must account for this by offering higher payments to creditors. Proper planning with an experienced bankruptcy attorney can help protect your assets while meeting this requirement.

Filing Another Chapter 13 After Dismissal or Failure

If your first Chapter 13 case is dismissed or fails, you may be eligible to file again. However, automatic stay limitations may apply if you’ve had cases dismissed within the past 12 months. Courts will also examine your new case for good faith, especially if there were multiple prior filings.

Bankruptcy and Tax Debt

Bankruptcy can discharge some tax debt, but timing is critical. To qualify for discharge, the following must be true:

• The tax return was due at least 3 years before filing (including extensions).
• The tax return was filed at least 2 years before filing.
• The tax debt was assessed at least 240 days before filing.

If these rules aren’t met, tax debt may not be dischargeable, but a Chapter 13 plan can help restructure payments and stop IRS collection actions.

Long-Term Bankruptcy Strategy Planning

Planning your bankruptcy filing strategically can greatly improve your financial outcome. We recommend consulting an attorney early, especially if you’re facing foreclosure or other urgent collection actions. Filing too quickly may result in missed opportunities to qualify for a discharge or protect key assets.

Our team at Ashley F. Morgan Law, PC regularly helps clients time their filings to:

• Maximize eligibility for Chapter 7 or Chapter 13.
• Protect their homes, vehicles, and other important assets.
• Reduce tax and other priority debt.

FAQs About Filing Bankruptcy Multiple Times

1. How soon can I file for bankruptcy again after a previous case?

It depends on the type of bankruptcy. Discharge waiting periods are based on filing date to filing date. For example, after a Chapter 7 discharge, you must wait 8 years before filing another Chapter 7.

2. Can I still benefit from filing if I can’t get a discharge?

Yes. Chapter 13 can help you catch up on secured debts, prevent foreclosure, and stop collection actions through the automatic stay, even if you aren’t eligible for a discharge.

3. What is a good faith hearing, and why might I need one?

If you’ve had four or more cases pending in the past five years, the court may schedule a hearing to determine whether your new case was filed in good faith. The judge will review your financial history and plan to decide if your case should proceed.

Talk to an Experienced Virginia Bankruptcy Attorney

If you’re considering a Gap Case, Chapter 20, or refiling after a dismissal, our team at Ashley F. Morgan Law, PC can help. We’ll guide you through the process and protect your rights. Contact us today for a free consultation to discuss your options.