I am frequently asked by people if it is possible to file bankruptcy a second time in a lifetime or even a third time. The answer to both questions is yes.
The Bankruptcy Laws changed in 2005, and since then it is possible to file bankruptcy and eliminate debts ever eight years. Although no one really wants to file bankruptcy at all, people’s lives change from year to year and sometimes circumstances exist over which they have no control.
One of the major reasons for filing a bankruptcy is loss of income or loss of a job. Since there is almost no job security left in this world, this can happen to anybody at any time simply because their company merges with another company. There is downsizing, or jobs are shipped overseas. Another major reason for filing is divorce or separation and there have been very few people that I have met over the years that want to see their marriage or other relationship disintegrate. This can even involve second and third marriages that do not ultimately work out. At that point, there are separate rents, utility bills, and nobody can afford to pay the bills that were incurred during the marriage or relationship. Another major cause is medical problems that can cause someone to not be able to work or to be faced with staggering medical bills.
If you have filed a bankruptcy petition in the past, and you feel that it may be in your best interest to file again, and eight years have elapsed since the filing of the prior case, you can file another bankruptcy petition. Having been in business for 35 years, I have had situations in which people have actually filed even three time or four times. Thousands of people filed right before the bankruptcy laws changed in October 2005 and all of those people are now eligible to file again, if circumstances require it. If you find yourself in that situation, please do not hesitate to give us a call at Steidl and Steinberg. As you know, we always offer a free consultation and would be happy to meet with you and evaluate your situation free of charge.