Multiple Bankruptcies in Detroit
Deciding to file for bankruptcy is not easy. It is a big choice that could affect your finances for a long time. If you are thinking about it, you should learn how filing more than once might impact you. Bankruptcy is not always the right answer for every situation.
There are a few key points to keep in mind before you take this step, as follows.
What Bankruptcy Can Do
Bankruptcy can help in many ways, but it is good to know what it can and cannot fix. For example, it can cancel some of your debt or make it easier to pay by setting up a plan.
Filing for bankruptcy can also stop foreclosure for a while, and this provides time to catch up on missed payments. It can also protect things like your car or other property from being taken. If your lights or water were turned off because you could not pay the bills, bankruptcy might help you get them back on by paying a small fee.
One of the best parts of filing for bankruptcy is that debt collectors have to stop bothering you. Once you file, they are not allowed to call or threaten action. Collectors also have to talk to your lawyer if they have questions about your debt instead of contacting you. If your wages are being taken out of your paycheck to pay off debt, bankruptcy can stop garnishment.

Things to Know Before Filing for Bankruptcy
There are some rules to keep in mind before starting the bankruptcy process so you are not caught off guard later. For example, bankruptcy cannot completely erase debts you owe to secured creditors. These are debts tied to things like your house or car, where the creditor can take back the item if you do not pay.
Knowing this ahead of time can help you avoid surprises during the process. If you take on any new debts after filing for bankruptcy, those debts cannot be added to your payment plan. This means they will not be erased or discharged through the bankruptcy process. You will still be responsible for paying them back on your own.
Understanding Multiple Bankruptcy Filings
When you file for bankruptcy, the court sets up two legal cases: one for you and one for the people or businesses you owe money to. If you file again within eight years of your first case, the second filing will be combined with the first one.
This means all your debts will be handled in a single court process. You might still get a discharge for your debts in the second filing, but the chances of that happening are lower compared to filing separately.
Why File for Bankruptcy More Than Once?
There are several reasons someone might need to file for bankruptcy again:
- Your finances have not improved since the first case.
- The outcome of your first filing did not give you the relief you needed.
- You are dealing with new money problems.
- You want to explore a different way to handle your debt.
- Creditors are putting pressure on you to consider bankruptcy again.

How Soon Can You File for Bankruptcy Again?
Thinking about filing for bankruptcy another time? The waiting period depends on the type of bankruptcy you filed before.
For Chapter 7, you must wait at least eight years from the date of your previous Chapter 7 filing. If your earlier case was Chapter 13, the wait is shorter—only four years before you can file for Chapter 7.
Understanding the waiting periods between bankruptcy discharges can help you plan if you are considering filing again.
Waiting periods are as follows:
- Two Chapter 7 Cases: If you got a discharge in a Chapter 7 case, you need to wait 8 years from the filing date of the first case before you can receive another discharge in a new Chapter 7 case. But timing is just one piece of the puzzle. You also need to check if you qualify again, e.g., based on your household income or how much equity you have in your property and belongings. [1] [2]
- Two Chapter 13 Cases: If your first discharge was in a Chapter 13 case, you need to wait 2 years between the filing dates of the first and second cases to get a discharge in the second Chapter 13 case.
- Chapter 7 Followed by Chapter 13: If you received a Chapter 7 discharge and want to file Chapter 13 next, you need to wait 4 years from the filing date of the Chapter 7 case to get a discharge in the Chapter 13 case.
- Chapter 13 Followed by Chapter 7: If your first case was a Chapter 13 with a discharge, you must wait 6 years from the filing date of that case before you can receive a discharge in a Chapter 7 case. Refiling for Chapter 13 works a bit differently. Whether you are filing after a Chapter 7 discharge or doing Chapter 13 again, the big question is whether you can get a new debt discharge. A discharge is when unpaid parts of unsecured debts, like credit card balances, medical bills, or personal loans, are wiped out. [2]
These timelines ensure that bankruptcy filings are spaced out and not used too frequently to manage debts.

Exploring Alternatives to Bankruptcy
Bankruptcy is not always the best choice for every financial situation. There are other paths that might work better for resolving your debt. Some alternatives include:
- Debt consolidation: Combining your debts into one payment with a lower interest rate.
- Credit counseling: Getting professional advice to create a plan for managing your finances.
- Debt settlement: Negotiating with creditors to pay less than what you owe.
- Bankruptcy exemptions: Using legal protections to keep certain assets safe.
The law allows for multiple bankruptcy filings to help people recover financially. However, before choosing this route, take time to explore other options. Solutions like debt consolidation or settlement can often have a smaller impact on your credit score and might better fit your needs.
Bankruptcy should be considered only after you have tried other ways to address your financial challenges.
If you are in Detroit and thinking about filing for bankruptcy for a second time, contact Frego & Associates’ bankruptcy attorneys today.
FAQs
Yes, you must pass the means test to see if your income is low enough for Chapter 7.
Yes, filing for bankruptcy can stop wage garnishments right away.
You file at the U.S. Bankruptcy Court in the Eastern District of Michigan.
Sources:
[1] O’Neill, C. (2024, February 1). Multiple Bankruptcy Filings: When Can You File Again? www.nolo.com. https://www.nolo.com/legal-encyclopedia/multiple-bankruptcy-filings-when-file-again.html
[2] Bankruptcy. (n.d.). https://www.michigan.gov/reinventretirement/reinventing/crisis-management/bankruptcy