How Multiple Bankruptcy Filings Impact Your Long-Term Financial Health

Filing for bankruptcy takes serious time and consideration. While we are often helping our clients fight the stigma of bankruptcy, we still understand the finality of such a decision and the short and long-term financial consequences.

For some, bankruptcy is not a one-off decision. Bad decisions, bad luck, and just bad circumstances can often put people in a position to have to go through the process multiple times. This, of course, raises some questions about how doing this will impact your finances long-term with multiple records of bankruptcy on your credit report.

There is No Limit to the Number of Times You Can File

You can file for bankruptcy numerous times throughout your lifetime. In fact, the former president and his companies have filed for bankruptcy six times.

While there is no technical limit to how many times you can file, there are wait times after each filing. For Chapter 7 bankruptcy cases, you have to wait eight years from the date of your previous filing before filing another Chapter 7 case or four years before filing a Chapter 13 case.

For Chapter 13 bankruptcy cases, you must wait two years from the date of your previous filing before pursuing another Chapter 13 case or six years before filing a Chapter 7 case.

In the event of a case being dismissed, you can file another bankruptcy case 180 days after your previous case was dismissed.

How Multiple Filings Impact Your Credit

Your credit will take a hit after filing for bankruptcy. This much is understood, but what about situations where you have filed for and received a discharge of debt from multiple bankruptcy cases?

Ultimately, there may be little to no impact on your credit report if you have filed multiple times as long as the cases have fallen off. Chapter 7 cases can stay on your report for up to ten years while Chapter 13 cases will last for up to seven. Unless the cases overlap, you will see no additional impact on your credit report.

However, creditors may be able to see that you have a history of multiple bankruptcies. This could make it harder to secure loans, be approved for a rental property, or complicate other circumstances down the line.

When you are considering bankruptcy, it’s important to speak to an attorney before proceeding. There may be alternatives that can protect your credit and long-term financial health. Hedtke Law Group is your choice for a bankruptcy attorney in Moreno Valley, CA.