How Often Can You File Bankruptcy in Utah?
There is no simple rule that says you may file bankruptcy only once, or that you must always wait a certain number of years before filing again. The more important question is usually: How long must you wait before you can receive another bankruptcy discharge?
For most Utah consumers, the answer depends on two things: what chapter you filed before and what chapter you want to file now. Federal bankruptcy law—not Utah law—sets these waiting periods.
How long do I have to wait between bankruptcy discharges?
If you received a discharge in your earlier case, these are the primary waiting periods:
| Previous Bankruptcy | New Bankruptcy | General Waiting Period |
|---|---|---|
| Chapter 7 | Chapter 7 | 8 years |
| Chapter 7 | Chapter 13 | 4 years |
| Chapter 13 | Chapter 13 | 2 years |
| Chapter 13 | Chapter 7 | 6 years* |
*There are important exceptions to the six-year rule following Chapter 13, discussed below.
Is the eight-year Chapter 7 rule measured from my discharge date?
No. This is one of the most common misunderstandings I see.
If you received a Chapter 7 discharge and want another Chapter 7 discharge, the eight-year period is generally measured from the filing date of the first case to the filing date of the new case—not from the date the first discharge was entered. See 11 U.S.C. § 727(a)(8).
For example, if you filed Chapter 7 on October 15, 2018 and received your discharge in February 2019, the important starting date for the eight-year rule is generally October 15, 2018, not February 2019.
Can I file Chapter 13 after a Chapter 7?
Yes, and you do not necessarily have to wait eight years.
If you received a Chapter 7 discharge, 11 U.S.C. § 1328(f) generally prevents you from receiving a Chapter 13 discharge if the new Chapter 13 case is filed within four years of the earlier Chapter 7 filing.
There are also situations where someone may have a legitimate reason to file Chapter 13 even though the timing rules mean a discharge will not be available in that case. Whether doing so makes sense is highly fact-specific.
For a comparison, see Alta Legal’s guides to Chapter 7 bankruptcy in Utah and Chapter 13 bankruptcy in Utah.
How long after Chapter 13 can I file another Chapter 13?
If you received a Chapter 13 discharge, the Bankruptcy Code generally prevents another Chapter 13 discharge when the new case is filed within two years of the earlier Chapter 13 filing. See 11 U.S.C. § 1328(f).
Because Chapter 13 plans ordinarily last three to five years, this rule often has less practical effect than people expect.
How long after Chapter 13 can I receive a Chapter 7 discharge?
The general rule is six years from the filing of the earlier Chapter 13 case to the filing of the new Chapter 7 case, but there are significant exceptions.
Under 11 U.S.C. § 727(a)(9), the six-year limitation does not apply in the same way if the earlier Chapter 13 plan paid 100% of allowed unsecured claims, or at least 70% of allowed unsecured claims when the plan was proposed in good faith and represented the debtor’s best effort.
Does this mean I cannot file bankruptcy before the waiting period expires?
Not necessarily. Filing eligibility and discharge eligibility are not always the same thing.
There are circumstances in which a debtor may file another bankruptcy even though that debtor is not eligible to receive a discharge in the new case. But that does not mean filing without discharge eligibility is a good idea.
The important point is: Do not assume that “I cannot receive another discharge yet” necessarily means “I cannot file a bankruptcy case.”
What if my previous bankruptcy was dismissed instead of discharged?
A dismissal is different from a discharge.
If your earlier bankruptcy was dismissed, the standard 8-, 6-, 4-, and 2-year discharge rules may not be the central issue because you may never have received a discharge in that case.
But repeat filings can create a different problem: the automatic stay. Under 11 U.S.C. § 362(c)(3)-(4), bankruptcy cases pending and dismissed during the preceding year can limit whether and how long the automatic stay applies in a later case. That can be critically important if someone is filing to stop a foreclosure, repossession, garnishment, or other immediate collection action.
Alta Legal also has a guide explaining what happens when a bankruptcy case is dismissed.
What if I don’t remember when I filed my last bankruptcy?
Do not guess. The relevant dates can be verified from the prior bankruptcy court docket. Ideally, determine the date the previous case was filed, which chapter was filed, whether a discharge was actually entered, and whether the case was dismissed or completed.
Can bankruptcy help me again if I have already filed once?
Yes. A prior bankruptcy does not automatically prevent you from ever receiving bankruptcy relief again.
People can experience another financial crisis years after a successful bankruptcy because of job loss, medical problems, divorce, business failure, unexpected expenses, or other circumstances. The Bankruptcy Code anticipates repeat cases and establishes specific rules governing when another discharge is available.
The useful questions are: When did you file? What chapter was it? Did you receive a discharge? And what are you trying to accomplish now?
If you have filed before and are considering bankruptcy again, Alta Legal can review your prior case and determine whether you are presently eligible for a Chapter 7 or Chapter 13 discharge—and whether filing now makes sense.
Schedule a free consultation with Alta Legal or call 385-224-3765 to discuss your situation with a Utah bankruptcy attorney.
Disclaimer
This information is for general informational purposes only and is not legal advice. Reading this article does not create an attorney-client relationship. You should consult a qualified attorney before making important legal or financial decisions based on your individual circumstances.