Can we file bankruptcy more than once?

When initially people hear about Bankruptcy especially those who have a little run in with financial troubles, they think it’s an easy way out of the mess. In fact so fascinated they are with the provisions they wonder if Bankruptcy can be filed by individuals repeatedly.

The truth is to understand the answer one must thoroughly understand the complex legal and financial proceedings that are involved in Bankruptcy. Legally, an individual can file bankruptcy as many times in his lifetime as he wants, however, he may not get the desired result. The law is actually such that it discourages people from going for bankruptcy until it is absolutely the last resort for a troubled debtor. As of 2005 the bankruptcy laws have further been made stringent.

The reason for this is to stop people from misusing the provision of discharging the debts, and this could be detrimental to the organizations who give credit (consumer or otherwise). And thus lead to economic chaos. In fact now it has been made compulsory to get financial counseling by state authorized counselors before a person can proceed for bankruptcy. The counseling session is needed to verify that all other debt paying options including the ones like debt restructuring and debt consolidation options has been explored. This counseling session has been made mandatory whether you choose to file chapter 13 bankruptcy or opt to file it under Chapter 7 bankruptcy rules.

The major reason why individuals should avoid bankruptcy at all cost is because not only are they at risk of losing almost all assets in their possession but there credit history will show the bankruptcy till many years to come and this may adversely affect future applications for loans, jobs as well as rent.

However there could be many circumstances that could genuinely lead to filing of bankruptcy. For example sudden loss of employment or a unforeseen drastic reduction in monthly income. Situations can also arise through medical emergencies like physical incapability to continue current employment or unmanageably expensive medical bills. Under these circumstances there are few other choices than actually going in for bankruptcy declaration.

One of the easiest ways to go about complex procedure of bankruptcy declaration is to take help of a bankruptcy attorney. There are many websites which provide free bankruptcy services like counseling and will help you make the right decisions. In fact bankruptcy you can file bankruptcy online too, however for certain important procedures you have to be present in person too.

All in all bankruptcy is a complex legal procedure with very long term repercussions and it is advisable to take help of an attorney before proceeding. There are many online websites which will provide you with services required.

The author Mr. Ronald Smith is a bankruptcy expert and has written many informative articles on topics such as Chapter 13 Bankruptcy and Filing bankruptcy online etc. on www.bankruptcyonly.com

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