Is it possible to declare bankruptcy twice?
One of the more interesting questions I've heard regarding personal bankruptcy is whether you can declare bankruptcy twice. What's wrong with this question? Well, I hope the point is obvious to you, because if it isn't then you should pay close attention to the next few paragraphs.
The first thing to remember is that personal bankruptcy provides a way out of a severe financial crisis. It can damage your credit for several years, but it is often exactly what is needed to provide relief from overwhelming debt.
If you've reached the point of declaring bankruptcy, you need to have a serious talk with yourself (and possibly your family) about your uncontrolled spending habits. Most of the time, out of control debt is a result of trying to live outside of your means. Most people are impatient and are not willing to work hard to increase their means in the long term.
To be fair, however, sometimes bankruptcy isn't the result of personal choices. You may find yourself facing an unjust lawsuit or a medical emergency that overwhelms your savings and leaves you with no option but to declare bankruptcy. So, it isn't always our spending habits that lead to financial crises, but they probably are the culprits in the vast majority of cases.
In any case, declaring personal bankruptcy can give you breathing room so you can rebuild your financial future. Ending up in bankruptcy court a second time is simply not an acceptable outcome. Almost without exception, this would be the result of irresponsible spending and lack of discipline. You must use your bankruptcy as a second chance and do everything you can to control your spending. (As a matter of fact, the new bankruptcy law now requires financial counseling as part of the process.)
If you're still wondering the answer to the above question (can you declare bankruptcy twice), the answer is yes. As is to be expected, however, there are restrictions on this. You can't expect to go from bankruptcy to bankruptcy forever. If you file for chapter seven bankruptcy (the kind that tries to wipe out all of your debt), you cannot file again for another eight years.
The above rule only applies if your case was successful and your debts are actually discharged. If you originally filed for chapter 13 bankruptcy (which establishes a payment plan for the next 3 to 5 years) and you paid your creditors at least 70% of what you had agreed to, you don't have to wait eight years to file for chapter seven.
You must take charge of your financial affairs, and even if you tried to declare bankruptcy again there's no guarantee that your debts would be eliminated. Take control and stop this from happening a second time.
The first thing to remember is that personal bankruptcy provides a way out of a severe financial crisis. It can damage your credit for several years, but it is often exactly what is needed to provide relief from overwhelming debt.
If you've reached the point of declaring bankruptcy, you need to have a serious talk with yourself (and possibly your family) about your uncontrolled spending habits. Most of the time, out of control debt is a result of trying to live outside of your means. Most people are impatient and are not willing to work hard to increase their means in the long term.
To be fair, however, sometimes bankruptcy isn't the result of personal choices. You may find yourself facing an unjust lawsuit or a medical emergency that overwhelms your savings and leaves you with no option but to declare bankruptcy. So, it isn't always our spending habits that lead to financial crises, but they probably are the culprits in the vast majority of cases.
In any case, declaring personal bankruptcy can give you breathing room so you can rebuild your financial future. Ending up in bankruptcy court a second time is simply not an acceptable outcome. Almost without exception, this would be the result of irresponsible spending and lack of discipline. You must use your bankruptcy as a second chance and do everything you can to control your spending. (As a matter of fact, the new bankruptcy law now requires financial counseling as part of the process.)
If you're still wondering the answer to the above question (can you declare bankruptcy twice), the answer is yes. As is to be expected, however, there are restrictions on this. You can't expect to go from bankruptcy to bankruptcy forever. If you file for chapter seven bankruptcy (the kind that tries to wipe out all of your debt), you cannot file again for another eight years.
The above rule only applies if your case was successful and your debts are actually discharged. If you originally filed for chapter 13 bankruptcy (which establishes a payment plan for the next 3 to 5 years) and you paid your creditors at least 70% of what you had agreed to, you don't have to wait eight years to file for chapter seven.
You must take charge of your financial affairs, and even if you tried to declare bankruptcy again there's no guarantee that your debts would be eliminated. Take control and stop this from happening a second time.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about how to avoid bankruptcy visit us at http://personalbankruptcyquestions.org
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