- According to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, you must wait eight years from the filing date of your last Chapter 7 bankruptcy to file again under the same chapter.
- Before filing another Chapter 7 bankruptcy, you must check eligibility under a means test. Under the means test you must provide the previous year's tax return showing that you earn less than the median income level of your state. A court-appointed trustee will review your finances to confirm you cannot budget a way to pay $100 in debt payments. If you can pay $100 or more in debt payments, you are not eligible to file another Chapter 7 bankruptcy; you must file under Chapter 13.
- While you cannot file another Chapter 7 bankruptcy, you can file under Chapter 13. According to BAPCPA, the waiting period between a Chapter 7 filing and a Chapter 13 filing is four years from the discharge date of your previous Chapter 7.
- Serial Chapter 7 bankruptcy filings may severely damage your credit file. When applying for new lines of credit, you may experience difficulty obtaining approval without a strong mix of assets to secure the credit and/or a co-signer with a "good" or "excellent" credit risk. Either may qualify you for higher interest rates and more extended lines of credit.
- A Chapter 7 bankruptcy filing remains on your credit file for 10 years. As time passes and you re-establish your credit, you may see lower interest rates over time. As a general rule of thumb, pay down new lines of credit to within 30 percent of less of your credit limit and make all your payments on time to see the greatest change in your credit file and scores.
Identification
Eligibility
Alternative Filing Options
Warning
Considerations
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