Have you gone through the bankruptcy process in Michigan in the past, only to find yourself once again struggling under the weight of unsustainable debts? If so, you might be wondering if you can file for bankruptcy again. The answer is yes—although you must wait a certain period before you become eligible again. Here’s what you need to know about the process, and how an experienced bankruptcy attorney can guide you through it.

How Long Do You Have To Wait Before You Can File for Bankruptcy Again?

While you can indeed file for bankruptcy again after a previous filing, you will be subject to a waiting period before you can discharge your debts. How long you have to wait will depend on the bankruptcy chapter you filed under in the past and which one you plan to file under now. Before we go any further, it helps to understand the two most common forms of bankruptcy in Michigan: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows individuals or businesses to eliminate most unsecured debts, such as credit cards and medical bills. In this process, a court-appointed trustee gathers and sells the debtor’s nonexempt assets to repay creditors. Most people filing for Chapter 7 are able to keep essential property like their home, car, and certain personal belongings through exemptions. Chapter 7 is designed for people with limited income who cannot afford to pay back their debts, and people who wish to file under the chapter must have income below a specific level set by the state they live in. The process typically takes a few months from filing to discharge, providing a relatively quick financial reset.

Chapter 13 bankruptcy, known as the “wage earner’s plan,” is for individuals with a steady income who want to keep their property while repaying debts over time. Instead of liquidating assets, the debtor proposes a repayment plan—usually lasting three or five years—based on their income and expenses. This type of bankruptcy can help stop foreclosure and catch up on missed mortgage or car payments, while unsecured debts may be partially discharged at the end of the plan.

Here’s how long you will have to wait before you become eligible to file again, based on how you filed in the past:

  • If you previously filed for Chapter 7 bankruptcy: Eight years for a Chapter 7 filing; four years for a Chapter 13 filing
  • If you previously filed for Chapter 13 bankruptcy: Six or fewer years for a Chapter 7 filing; two years for a Chapter 13 filing

Note that the proverbial clock starts ticking on the day of the first filing. So, if you filed for Chapter 7 bankruptcy on January 1, 2022, you will be eligible to file for a Chapter 13 bankruptcy on January 1, 2026. However, you will not be able to file for Chapter 7 bankruptcy again until January 1, 2030.

Get Help From Marrs & Terry, PLLC

Are you struggling under the weight of unsustainable debts and interested in filing for bankruptcy again? If so, you deserve the help of a trusted Michigan bankruptcy attorney like those with Marrs & Terry, PLLC. We offer:

  • Experience – We have spent decades helping Michigan residents like you get a clean start through bankruptcy.
  •  Honesty – We’ll candidly assess your situation and tell you whether bankruptcy is right for you at this time, or whether an alternative might yield better results.
  • Results – Our goal is to deliver the outcome you need to meet your short- and long-term goals.

Don’t attempt to navigate the confusing bankruptcy process alone, especially if this is your second or subsequent filing. Instead, contact Marrs & Terry, PLLC, and let our Michigan bankruptcy attorneys guide you on the path toward financial security.