ABA Family Legal Guide

Consumer Bankruptcy

Chapter 7 or Chapter 13?

Advantages to Each

So does that mean I can file for Chapter 13 as often as I want?

You can file, but under the new bankruptcy law, it may not be possible to complete the bankruptcy and be discharged from your debts. A Chapter 13 debtor will be denied discharge if he or she received a discharge in a case filed under Chapter 7, 11, or 12 during the previous four years, or in a Chapter 13 case filed during the previous two years. The advantage of being able to refile under Chapter 13 (even if debtors are not permitted discharge) is that debtors are given the temporary protection of the automatic stay. The benefits of having a period of time—up to five years—to deal with secured debt, a time in which unsecured creditors must suspend their collection efforts, may outweigh not being able to get a discharge at the end of that period.