When you file for bankruptcy, the hope is that you will get a fresh financial start in life that can help you build going forward. For whatever reason, you may continue to find yourself in financial difficulty in the future. Your issues may be so severe that you may be forced to consider a subsequent bankruptcy. The good news is that there are no limits on the number of times that you can file for bankruptcy in Arkansas, although you may be subject to certain restrictions if you have multiple filings. Never assume that you cannot file for bankruptcy again if you have already done so once before.

Multiple Bankruptcy Filings Can Be More Difficult

Although there is not necessarily any hard and fast limit contained in the law on the number of times that you can file for bankruptcy, practically speaking, it can get more difficult if you have had multiple filings. The court appoints a bankruptcy trustee who is responsible for your case. They are taking a close look at your actions prior to the point of bankruptcy. Remember that the bankruptcy court is one of “equity.” This term invokes fundamental fairness, and it means that your creditors have rights, too. 

Theoretically, bankruptcy protection is available to you under many circumstances, but the trustee may also aim for fairness to your creditors, and they may not always allow your bankruptcy filing. Nevertheless, a bankruptcy petition is not automatically dismissed because it is not the first time you have filed. 

There Are Time Limitations on Multiple Bankruptcy Filings

Although there are no limits on the number of times that you can file for bankruptcy, there are time restrictions that are in force. You cannot file for bankruptcy within a certain amount of time after you have previously sought protection. For example, if you have filed for Chapter 7 bankruptcy, you must wait at least eight years before you can make a subsequent filing under this section, or four years before you can seek protection under Chapter 13. If your initial bankruptcy filing was under Chapter 13, you must wait at least two years before filing again under the same section, or six years before you can seek protection under Chapter 7. 

If your subsequent bankruptcy filing is one under Chapter 7, you must again go through the process of potentially surrendering non-exempt assets to the trustee. Any property that you have accumulated since the last time that you filed is subject to being surrendered to the bankruptcy trustee. 

If you have previously filed for Chapter 13 bankruptcy, even though the time limit between filings is two years, it may be exceedingly difficult to have a subsequent filing approved by the trustee. They will only allow you to file for bankruptcy again during your repayment if you have experienced extreme hardship.

A Bankruptcy Lawyer Can Advise You Whether It Makes Sense to File

Since there may be legal issues with multiple bankruptcy filings, it is vital that you contact an experienced lawyer so they can review your case. Your lawyer will advise you whether it is in your best interest, or even feasible, to file for bankruptcy a second or subsequent time. They can help you deal with any issues that arise with your filing.

Contact a Fayetteville Bankruptcy Lawyer at Wilmoth Law Firm if You Have Questions Regarding the Bankruptcy Process

If debt is weighing you down, and you need a fresh financial start in life, speak to a Fayetteville bankruptcy lawyer at Wilmoth Law Firm. We can assess your circumstances and let you know whether bankruptcy is the right option for you. To schedule a free consultation, submit our online form or call us today at 479-443-8080. Located in Fayetteville, Arkansas, we gladly serve clients in the surrounding areas.