You’ve tried, really tried everything you can think of to dig yourself out of the mountains of debt, or you’ve simply had bad luck, but you still can’t afford to keep up with payments.
You’re worried that making it a habit screws you over, and you get stuck in a worse situation than you were already in. But what do you need to know about the rules and restrictions related to how many times you can declare bankruptcy?
Fear not, we’ve got you covered. Read on for all the info you need to know about how many times can you file bankruptcy in Texas.
Chapter 7
A Chapter 7 bankruptcy requires the liquidation of certain assets to pay off creditors. In Texas, an individual can only file for Chapter 7 bankruptcy protection once every six years. Therefore, an individual can file bankruptcy again after those six years from their initial filing.
An individual may be allowed to file multiple times within six years if there are extenuating circumstances such as loss of a job or significant decrease in income. In any case, filing for bankruptcy can have serious long-term impacts and repayment plans should be considered before filing for bankruptcy in Texas.
Chapter 13
In Texas, an individual can only file for Chapter 13 bankruptcy once in any 6 years, regardless of how much debt you are trying to discharge or restructure. However, a person can file a new Chapter 13 bankruptcy case if they have previously filed and completed a Chapter 13 case.
For example, if you filed Chapter 13 bankruptcy in 2016 and completed all the payments due along with the court confirmation order, then you could file for Chapter 13 bankruptcy again in 2022.
In certain cases, the court may also allow a debtor to file for Chapter 13 bankruptcy if his/her current Chapter 13 case has been dismissed within a 6-year time frame for him/her to be provided with a fresh start.
Chapter 11
In Texas, you can file Chapter 11 bankruptcy as often as you need. However, most people file only once or twice in the same court since Chapter 11 bankruptcies can be lengthy and costly.
When filing for Chapter 11, all of your assets will be examined and analyzed. The court will then decide how to pay off your debts. You may be able to keep some of your valuable assets but keep in mind that the court may require them to be sold to pay off your creditors.
If you have filed Chapter 11 bankruptcy before in Texas, it might be prudent to work on building your credit and resolving your financial issues before attempting to file again. Make sure to hire the best bankruptcy lawyer to help you out of this difficult situation.
How Many Times Can You File Bankruptcy in Texas Today
Filing for bankruptcy in Texas can be a great way to manage your debt. However, it is important to understand the restrictions on how many times can you file bankruptcy in the state.
As a rule of thumb, only file when necessary and contact a local bankruptcy attorney to ensure all requirements are met. Take the steps necessary to protect your financial future today.
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