Filing Bankruptcy Multiple Times in Maryland: What You Need to Know
Filing for bankruptcy can provide a powerful financial reset for Maryland residents facing overwhelming debt. But what if you’ve already filed once? Can you do it again? The short answer is yes, you can file bankruptcy multiple times in Maryland. However, Maryland bankruptcy laws and federal regulations set limits on how often you can receive a discharge and what type of bankruptcy you can file next.
Understanding these rules, as well as the pros and cons of filing bankruptcy again, can help you make the right decision for your financial situation.
Can You File Bankruptcy More Than Once in Maryland?
Yes. There is no lifetime limit on how many times you can file bankruptcy under Maryland bankruptcy laws or federal law. However, there are waiting periods between discharges that depend on the type of bankruptcy you filed before and the type you plan to file next.
Because bankruptcy is governed primarily by federal law, these timelines apply nationwide including in Maryland. However, the U.S. Bankruptcy Court for the District of Maryland handles filings locally, and certain procedural details may vary by division or county.
Time Limits Between Bankruptcy Filings in Maryland
If you’re considering filing Chapter 7 again in Maryland or switching from Chapter 13 to Chapter 7, it’s essential to understand the waiting rules. Here’s a breakdown:
Chapter 7 after Chapter 7: You must wait 8 years from the date you filed your first Chapter 7 case to file again and receive another discharge.
Chapter 13 after Chapter 13: The waiting period is 2 years between filings.
Chapter 7 after Chapter 13: You must wait 6 years from the date of your Chapter 13 filing, unless you have paid at least 70% of your unsecured debts in good faith under your Chapter 13 repayment plan.
Chapter 13 after Chapter 7: You must wait 4 years from the filing date of your Chapter 7 case before qualifying for a Chapter 13 discharge.
These time limits apply to your eligibility for a discharge (the court order that wipes out debts), not your ability to file. Technically, you can file sooner, but you won’t receive a new discharge until the waiting period expires.
The Pros of Filing Bankruptcy Again in Maryland
Filing bankruptcy multiple times can still offer significant advantages under Maryland bankruptcy law, especially if your financial situation has changed since your last filing.
1. Stops Creditor Collection Actions
When you file for bankruptcy in Maryland, an automatic stay goes into effect immediately. This court order stops most collection activities, including foreclosure, wage garnishments, repossessions, and creditor lawsuits. Even if you have filed before, the stay can still provide crucial relief.
2. Addresses New Financial Challenges
Unexpected hardships such as medical bills, job loss, divorce, or inflation, can lead to new debt years after your last bankruptcy. Filing Chapter 13 or Chapter 7 again in Maryland allows you to legally manage those new obligations and regain control of your finances.
3. Strategic Use of Chapter 20
Some Maryland filers use a “Chapter 20” strategy, filing Chapter 13 after Chapter 7 (13+7=20). This approach can help you catch up on mortgage payments or eliminate debts not covered by your previous Chapter 7 discharge. But it should be used with discretion and only if necessary.
4. Legal Structure and Oversight
A repeat bankruptcy filing provides a formal, court-supervised plan for handling debts, offering protection from creditors and time to stabilize your income and expenses.
The Cons of Filing Bankruptcy Multiple Times
While refiling bankruptcy in Maryland can offer relief, there are potential downsides to keep in mind.
1. Extended Credit Impact
Each bankruptcy filing stays on your credit report up to 10 years for Chapter 7 and 7 years for Chapter 13. Multiple filings can make it harder to qualify for new credit or loans and may result in higher interest rates.
2. Limited Automatic Stay Protection
If you file multiple cases within a short period, the automatic stay may not last as long. For example, if you file a second bankruptcy within one year of your last case’s dismissal, the stay only lasts 30 days unless you request and receive court approval to extend it.
3. Increased Court Scrutiny
Repeated filings may cause the court or trustee to question your financial management and good faith. The Maryland Bankruptcy Court can dismiss cases that appear abusive or repetitive.
4. Costs and Time Commitment
Each new filing involves court fees, mandatory credit counseling, and time spent compiling financial documents. Filing more than once can increase your legal expenses and administrative burden.
Strategic Considerations Before Filing Bankruptcy Again
Before filing again, consider your financial goals and whether bankruptcy is the best solution. In Maryland, you might also explore alternatives such as:
Debt settlement or negotiation with creditors.
Credit counseling through a Maryland-approved agency.
Converting an existing bankruptcy case from Chapter 13 to Chapter 7 (or vice versa), if your financial circumstances change.
Consulting a Maryland bankruptcy attorney is highly recommended before filing again. An experienced attorney can review your financial history, determine your eligibility for discharge, and ensure your case follows Maryland bankruptcy court requirements.
Final Thoughts: Rebuilding After Multiple Bankruptcies in Maryland
Filing bankruptcy multiple times in Maryland is entirely possible, but it requires strategic planning and awareness of timing rules. A second or even third bankruptcy can offer powerful relief, but only when done in compliance with Maryland bankruptcy laws and with a clear understanding of the potential drawbacks.
If you’re considering filing Chapter 7 again in Maryland or starting a new Chapter 13 repayment plan, take time to consult with a local bankruptcy attorney. The right guidance can help you protect your assets, rebuild your credit, and move toward lasting financial stability.
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You don’t have to face financial hardship alone. Bankruptcy may feel like the end, but with the right legal help, it can be the beginning of a brighter financial future.
Call Atkinson Law at (410) 882-9595 or contact us online to schedule your free 30 minute consultation. Let’s talk about how we can help you find relief and move forward.