How Many Times Can You File Bankruptcy in Texas?

Filing for bankruptcy protection is a serious decision, but if you find yourself in a situation where you can no longer manage your debt, it may be the best option for you. If you have filed bankruptcy in the past, and yet find yourself in a financial crisis and once again struggling with unmanageable debt, you are probably wondering if you can file bankruptcy again.  The answer to this question depends on a number of factors, including the type of bankruptcy you filed and the circumstances that led to your current financial crisis. However, it is important to note that filing for bankruptcy is not a decision to be made lightly. Before taking any action, you should speak with an experienced bankruptcy attorney to discuss your options and determine whether filing for bankruptcy is right for you.  At Pack Law, P.C., we can help you explore all of your options and make the best decision for your unique situation. Contact us today to schedule a consultation.

How many times can you file bankruptcy in Texas?  This is a common question. The quick answer is that you can file bankruptcy as many times as you want, unless a Judge has placed certain restrictions to refiling.  However, there is a limit to how often you can have your debts discharged in a bankruptcy case.

How Often Can You File Bankruptcy?

Under the United States bankruptcy code, there is a minimum time period required between bankruptcy filings depending on the type of bankruptcy filed previously and whether you received a discharge or not.

How Often Can You File Chapter 7 Bankruptcy

Under the Bankruptcy code, if you have had a chapter 7 bankruptcy discharge, you must wait eight years before you can file another chapter 7 bankruptcy.  The time starts from the date your previous case was filed. In addition, you will not be able to file a chapter 7 if you have received a discharge in a Chapter 13 or a Chapter 12 bankruptcy case in the past six years.

How Often Can You File Chapter 13 Bankruptcy

If your previous bankruptcy was Chapter 13 and you received a discharge, you have to wait two years before you can get another discharge under chapter 13.  If your prior bankruptcy was Chapter 7 and received a discharge, then you have to wait four years before filing another Chapter 13.

We mentioned previously that while there is no limit to how many times you can file for bankruptcy, unless restrictions have been placed by a Bankruptcy Judge, there is a limit to the number of times that the court will discharge your debts. With that in mind, there are other reasons you may consider filing for bankruptcy. Even though you may not be eligible for a discharge, filing bankruptcy will still give you the protection of an automatic stay. This will stop collection efforts and can give you time to catch up on payments, such as your mortgage, IRS and to stop a vehicle repossession, etc.

Other Things to Consider With Repeated Frequent Bankruptcy Filings

The bankruptcy laws were created to give honest, but unfortunate debtors a financial fresh start from the burden of excessive debts. The bankruptcy laws were not created to allow people to simply avoid meeting their obligations.

The following are conditions that could result in a denial or revocation of a bankruptcy discharge.

Concealing Information

Intentionally keeping finance information from your bankruptcy attorney can get you into trouble with the court, and could result in your bankruptcy being revoked or denied.

Attempted Fraud

When individuals file for bankruptcy under chapter 7 of the bankruptcy code, they are required to disclose all of their assets. This information is used to determine which assets are eligible for liquidation in order to repay creditors. However, some individuals attempt to hide or transfer property in order to avoid having it liquidated. This is considered fraud, and it can result in severe penalties. Therefore, it is crucial that you tell your lawyer about any transfers of property that you have made in the months prior to your bankruptcy filing. Your lawyer can help to ensure that all of your assets are properly disclosed, and that you do not inadvertently commit fraud.

False Statements

Making false or misleading statements on any documentation made to the court during your bankruptcy proceeding is a serious offense. If your bankruptcy discharge is revoked, it can negatively impact your financial stability and credit rating. Revocation of a discharge can occur up to a year after the discharge date, so it is important to be truthful on all documents related to your bankruptcy case. If you have any questions about what information should be included on these documents, you should consult with an experienced bankruptcy attorney. Lying or omitting information on bankruptcy documents is a felony offense that can result in harsh penalties, so it is not worth risking your future by making even a small mistake.

Failure To Complete Credit Counseling Course

When you file for bankruptcy, you are required to complete a credit counseling course. The course must be completed within six months of filing for bankruptcy, and you must receive a certificate of completion prior to filing your case.  Failure to take and complete the course prior to filing will result in the dismissal of your case.  There are many reputable credit counseling agencies that offer the course, and you can typically find one that offers the course online or in person. The cost of the course is usually nominal, and it can be a helpful way to get started on the road to financial recovery.

Discuss Your Situation With A Bankruptcy Lawyer

The bankruptcy laws are complicated.  Life happens. Financially responsible honest people just like you can get hit with a divorce, job loss, costly medical bills, or any one of many other unexpected expenses. If you have found yourself to be carrying an unmanageable mountain of debt and you need help, contact our office to speak with a bankruptcy lawyer who can help you decide on the best course of action for your circumstances. Bankruptcy may be the best solution for your debt problem.

The bankruptcy laws were created as a way to give individuals a fresh start from burdensome debt. Filing for bankruptcy protection can stop collection calls, wage garnishments, and foreclosures. It can give you the breathing room you need to get back on your feet financially.

Contact our office today to schedule a free consultation with an experienced bankruptcy attorney. We will review your debts, explain the bankruptcy process, and help you decide if filing for bankruptcy is the right choice for you.