When Can I File Again if Denied Discharge in a Bankruptcy?
Just because you file for bankruptcy doesn't mean you'll receive a debt discharge. Bankruptcy courts can deny a petition for failure to appear in court, refusing the court's orders, or because you tried to hide some of your assets. If the court dismisses your petition, you can refile, but not for several months.
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Time Frame
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If a bankruptcy judge rejects your petition, you have to wait 180 days before filing again. The automatic stay you receive when you file bankruptcy -- a block against anyone trying to collect money from you -- stops once your petition is dismissed. If your mortgage lender was about to foreclose when you filed, for example, the foreclosure can proceed as soon as your bankruptcy ends. Any creditor can resume collection attempts until you refile and get a new automatic stay.
Finances
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If your income or your debt load have changed since your first filing, check them against the federal requirements. To file Chapter 7, your average income for the six months before filing must be below your state's median; if your income has gone up or the median has dropped since last time, you may be out of luck. In Chapter 13, the federal government limits the maximum amount of debt you can discharge; if your debt load has increased since your first filing, Chapter 13 may no longer be an option.
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Paperwork
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When you resubmit your petition, you'll have to meet the same paperwork requirements you did the first time. You have to show that you completed a credit-counseling course in the 180 days before you filed. You must also submit detailed accounts of your income, expenses, debts, assets and creditors. If your financial situation is identical to your first filing, you can reuse your financial reports, but if you've sold off assets or seen your income drop, you'll have to do at least some of the data over.
Considerations
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Under some circumstances, there may be advantages to waiting longer than 180 days to refile. If your income has dropped, but is still too high for Chapter 7, waiting an extra month or two might bring the average under the state median. If you know you're about to be hit with a big new debt, waiting to file until after the bill comes may let you wipe that one out in bankruptcy too.
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