Since the recent economic downturn which caused homes across the nation to go into foreclosure and millions to be unemployed, Americans from every walk of life have turned towards bankruptcy for debt relief and sometimes protection against foreclosure of their home. While some view bankruptcy as a once in a lifetime occurrence, not everyone can predict how life will turn out, nor can everyone adequately prepare for a negative event such as a workplace accident, an illness, a layoff, or even something that can destroy their home such as an infestation or a flood.

There are so many things that can go wrong in life, events that are completely out of your control, any one of which can lead you to filing for bankruptcy a second time. If you filed bankruptcy once before and are facing the fact that you might have to file again, know that you’re not alone.

Fortunately, people can file bankruptcy a second time; however, under federal bankruptcy laws there are limitations that determine when you can file bankruptcy a second time. If you previously filed a Chapter 7 or Chapter 11 bankruptcy case that was discharged, you have to wait eight years before filing the second petition. If you previously received a discharge in a Chapter 12 or a Chapter 13 case, then you have to wait six years before filing the Chapter 7 in the second bankruptcy case.

If you are looking at filing a Chapter 13 bankruptcy case, you are entitled to a discharge providing: 1) all domestic support obligations (where applicable) have been paid, 2) you have not received a discharge in a prior case filed within two years for a prior Chapter 13 case or four years in a prior Chapter 7, 11, or 12, case; and 3) you have completed an approved course on financial management.

Filing for bankruptcy is a delicate matter and often times timing can be everything, particularly when you have certain debts such as taxes that are older than three years, or a home that is at risk of going into foreclosure. For more information about filing a second bankruptcy, I encourage you to call my office to schedule a free case evaluation with me, attorney Rick Flume to discuss all of your options.