How Often Can You File Bankruptcy in Alabama

There is no single lifetime limit on the number of bankruptcy cases a person may file. However, federal law imposes waiting periods for receiving another discharge, and repeat filings may affect the automatic stay.

Yes. A person may file bankruptcy more than once. Whether the person can receive another discharge or obtain full automatic-stay protection depends on the prior case, filing dates, discharge and dismissal history.

To receive another Chapter 7 discharge, the new Chapter 7 case generally must be filed at least eight years after the filing date of the earlier Chapter 7 case in which a discharge was granted.

The eight-year period is generally measured from the filing date of the earlier Chapter 7 case to the filing date of the new Chapter 7 case.

A case may sometimes be filed before the eight-year period expires, but the debtor generally will not be eligible for another Chapter 7 discharge. Filing without discharge eligibility can have serious consequences and should be reviewed by an attorney.

To receive a Chapter 13 discharge after a prior Chapter 7 discharge, the Chapter 13 case generally must be filed at least four years after the filing date of the prior Chapter 7 case.

Possibly. A Chapter 13 case may sometimes serve purposes such as curing mortgage arrears or paying secured and priority debts even when the debtor is not eligible for a Chapter 13 discharge. This is sometimes informally called a Chapter 20 case.

Chapter 20 is an informal term for filing Chapter 13 after Chapter 7. It is not a separate chapter of the Bankruptcy Code. The strategy may be used in some circumstances even when another discharge is unavailable.

A debtor generally must wait six years from the filing date of the prior Chapter 13 case before receiving a Chapter 7 discharge, unless the prior Chapter 13 plan paid qualifying unsecured claims in the amounts required by bankruptcy law.

Yes. The six-year restriction may not apply when the prior Chapter 13 plan paid all allowed unsecured claims or paid at least 70 percent of those claims and satisfied the applicable good-faith and best-effort requirements.

To receive another Chapter 13 discharge, the new Chapter 13 case generally must be filed at least two years after the filing date of the earlier Chapter 13 case.

Possibly. A prior dismissal does not always create the same discharge waiting periods as a prior discharge, but the dismissal may create filing restrictions or limit the automatic stay.

The discharge waiting periods may not apply in the same manner when no discharge was entered. However, the reason for dismissal or denial of discharge may affect eligibility, discharge and automatic-stay protection in a new case.

Yes. In certain circumstances, a dismissal order may temporarily prohibit another bankruptcy filing, particularly when the debtor failed to follow court orders, requested dismissal after certain creditor motions or engaged in abusive conduct.

When one prior bankruptcy case was pending and dismissed during the previous year, the automatic stay may expire 30 days after the new case is filed unless the court extends it.

A debtor may ask the bankruptcy court to extend the automatic stay by showing that the new case was filed in good faith. The request must be filed and heard within the period required by bankruptcy law.

When two or more cases were pending and dismissed during the previous year, the automatic stay generally does not arise automatically in the new case. The debtor may need to request that the court impose the stay.

The effect of a prior bankruptcy depends on its chapter, filing date, dismissal date, discharge status and reason for dismissal. A complete review of the prior docket and discharge order may be necessary.

A repeat Chapter 13 case may sometimes help address mortgage arrears or foreclosure, but discharge eligibility, automatic-stay limitations, good faith and plan feasibility must be evaluated.

A repeat filing may sometimes affect a threatened repossession, but automatic-stay limitations, vehicle equity, payment history and the proposed treatment of the loan must be considered.

Debts arising after an earlier bankruptcy may potentially be addressed in a later case, subject to discharge eligibility and exceptions to discharge.

Another bankruptcy filing may be reported by consumer reporting agencies and may affect access to credit. The practical impact depends on the person’s existing credit history and financial circumstances.

Helpful documents include prior bankruptcy case numbers, petitions, schedules, dismissal or discharge orders, recent pay records, tax returns, bank statements, debt statements and notices involving foreclosure, repossession, lawsuits or garnishment.

The filing date appears on the bankruptcy petition, notice of bankruptcy case and federal court docket. A bankruptcy attorney may also help locate and review the prior case.

Ferguson & Ferguson can review prior filing and discharge dates, determine whether another discharge is available, analyze automatic-stay limitations and evaluate whether Chapter 7, Chapter 13 or another option may address the current financial problem. Call the Huntsville office at 256-534-3435 or the Decatur office at 256-350-7200 to schedule a consultation.