How Can You Declare Bankruptcy Twice?

One of the more interesting questions I've heard regarding personal bankruptcy is whether you can declare bankruptcy twice. What's wrong with this question? Well, I hope the point is obvious to you, because if it isn't then you should pay close attention to the next few paragraphs.

First of all, bankruptcy provides an individual (or a family) with a fresh start financially. It is a significant step which affects your credit and reputation for several years, but it can also be taken as a second chance to rebuild your finances and a better future.

Perhaps you have not been disciplined with your spending and have tried to live above your means by the use of credit cards and other loans. This is often the case and is a major problem in our society today. We simply need to learn how to live within our means. There's nothing wrong with trying to increase those means over time, but until then you must remain disciplined and avoid unnecessary debt.

Of course, poor financial planning isn't the only cause for ending up in bankruptcy court.

Sometimes you're faced with a medical emergency that you cannot afford, and you have inadequate insurance or no insurance at all. These problems may hit you while you're still trying to improve your finances so you can afford adequate coverage and an emergency savings fund.

In any case, declaring personal bankruptcy can give you breathing room so you can rebuild your financial future. Ending up in bankruptcy court a second time is simply not an acceptable outcome. Almost without exception, this would be the result of irresponsible spending and lack of discipline. You must use your bankruptcy as a second chance and do everything you can to control your spending. (As a matter of fact, the new bankruptcy law now requires financial counseling as part of the process.)

If you're still wondering the answer to the above question (can you declare bankruptcy twice), the answer is yes. As is to be expected, however, there are restrictions on this. You can't expect to go from bankruptcy to bankruptcy forever. If you file for chapter seven bankruptcy (the kind that tries to wipe out all of your debt), you cannot file again for another eight years.

The above rule only applies if your case was successful and your debts are actually discharged. If you originally filed for chapter 13 bankruptcy (which establishes a payment plan for the next 3 to 5 years) and you paid your creditors at least 70% of what you had agreed to, you don't have to wait eight years to file for chapter seven.

Of course, there's no guarantee that your case will be successful the second time around anyway. This is another reason why you must discipline your spending and do whatever it takes to improve your financial situation after you're first bankruptcy. In other words, try to make your first bankruptcy your only bankruptcy.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about can you declare bankruptcy twice visit us at http://personalbankruptcyquestions.org