Bankruptcy Questions Answered: How Many Times Can I File For Bankruptcy In Ohio?

Maybe you’re just casually wondering if there is a limit to the number of times someone can file for bankruptcy in Ohio. Or maybe you’ve faced bankruptcy in the past or are in the midst of a case right now, and wonder if you’d still be eligible to file for bankruptcy in Ohio in the future if necessary. It could even be that you just got through bankruptcy and life is already knocking you down again. 

At Hausen Law, we appreciate that life is uncertain and that there are countless uncontrollable, unforeseen circumstances that could lead to bankruptcy. That’s why we're here with practical advice and answers to your burning bankruptcy questions. So let’s get into the details and talk about how many times someone can file for bankruptcy in Ohio along with some key considerations to keep in mind.

Bankruptcy Limitations in Ohio

The language here can get a little pedantic–sort of like when mom insisted that you used “may” instead of “could.” That said, without the right understanding, you could be left floundering.

So, could you file for bankruptcy in Ohio more than once or twice? Sure, you can file. In fact there is no limit to the total number of times that an Ohio resident can file for bankruptcy in their lifetime. But that’s only half of the question. Filing is just the beginning. What you’re really thinking about is likely the discharging of debts that comes along with a chapter 7 bankruptcy or the repayment plan that accompanies a chapter 13 bankruptcy. And those processes do have limits, in the form of mandatory waiting periods between filings.

These waiting periods have their own guidelines as well. So, for instance, if you are considering filing for bankruptcy, but you’ve done so in the past, the types of bankruptcy will determine your waiting periods. These set timeframes will typically start at the time of filing. The rules are federal and apply universally across all states.

Here are the basics:

• chapter 7 followed by chapter 7 requires an eight-year waiting period
• chapter 13 followed by chapter 13 requires a two-year waiting period
• chapter 7 followed by chapter 13 requires a four-year waiting period
• chapter 13 followed by chapter 7 requires a six-year waiting period in most cases (less or none if unsecured debts are repaid at least 70% in a good-faith plan)

If a prior bankruptcy case was dismissed instead of being discharged, waiting periods can differ. They are typically shorter and may even be eliminated entirely. Here are the guidelines:

• Dismissal without prejudice: you may be able to file for bankruptcy again right away
• Dismissal with prejudice: dismissal for reasons of abuse of the system or willful failure to follow court orders requires a waiting period of at least 180 days

When you line up some of these numbers, like a two-year wait between two chapter 13 cases, you realize that it’s possible to file for another chapter 13 bankruptcy when you’re still in the midst of your 3-5 year repayment plan. Again, could you file? Yes. But may you, in the court’s eyes, legitimately file for bankruptcy in Ohio yet again? Well, that depends.

Considerations For Multiple Filings of Bankruptcy In Ohio

From the outside, someone may wonder, “Isn’t it an abuse of the federal bankruptcy system to file more than once in close succession?” It could be, but it often isn’t. As we’ve already mentioned and written about, there are so many reasons why people file for bankruptcy. Most of these reasons are either things out of their control, or expenses that, paired with unfortunate life circumstances, become unmanageable. It’s easy to imagine a scenario where someone gets back on track financially, only to suffer a health crisis followed by a job loss. This kind of unforeseen situation could quickly lead to another bankruptcy filing. Federal limits are there to prevent wild abuse, but they also allow for legitimate relief from insurmountable debt.

Are there any situations in which a subsequent bankruptcy filing may be dismissed and not allowed? Yes, there are. Anyone with a history of bankruptcy will naturally be scrutinized by the court should they need to file again in the near future. Because though there aren’t specific limits on the number of bankruptcy filings allowed, courts are always on the lookout for individuals trying to take advantage of the system or avoid their financial responsibilities. These are some patterns and circumstances they’ll look for:

• Timing: filing directly after receiving a bankruptcy discharge can raise suspicions of abuse
• Financial Mismanagement: patterns of reckless spending that cause an individual to repeatedly incur new debts directly before filing for bankruptcy can raise concerns about abusive behavior

All of that being said, there is another reason to file for bankruptcy in Ohio, even if you aren’t eligible–to benefit from the automatic stay which keeps creditors at bay for a time. This can allow you some peace to focus on repayment and to get financial counseling or look into debt consolidation or debt management plans. This provision puts a temporary pause on debt collection efforts, foreclosure, eviction and wage garnishment as well. That said, there are limits at play here too. Filing for bankruptcy repeatedly within a 12-month period can null and void this advantage as well.

Clearly, the rules for refiling for bankruptcy are complex. Consulting with an experienced Ohio bankruptcy lawyer is the only way to ensure that you are eligible and are following established guidelines. It will also help you to better understand your options when filing for bankruptcy in Ohio. And showing that you sought legal counsel prior to filing can go far to supporting your case and showing the court that you genuinely need help and are trying to resolve financial responsibilities.

Consult with an Experienced Ohio Bankruptcy Lawyer

Bankruptcy is a wonderful provision to help debtors recover financial health and get back on good financial footing. However, as can be said of any relief program, there may be individuals who choose to take advantage of the arrangement. Because of this possibility, courts will closely scrutinize repeated filings. However, if life circumstances have you in a place where refiling for bankruptcy is your only way forward, know that there is help.

If you find yourself in this situation, it’s time to work with an experienced chapter 7 bankruptcy lawyer. James F. Hausen and the team at Hausen Law will advocate for your rights and fight to get you the financial relief you need. Paired with our 720 Credit Repair Program, bankruptcy can help you to get out of debt, clean up your credit and rebuild your score. There’s no need to go it alone–contact our team today and take the first step on your path to financial wellbeing.

James F. Hausen has handled thousands of cases throughout Northeast Ohio, including in the Akron, Canton, Cleveland, Columbus, Dayton, Cincinnati and Youngstown communities. Contact us today to set up a free consultation and learn more about your bankruptcy options. Inquire about our credit counseling and credit repair programs and work with us to move toward a more positive financial future.