Arizona Bankruptcy Law - "How many times can I file bankruptcy?"
Debtors may file Chapter 7 only once during any 6 year period.. If a Chapter 7 discharge
was granted within the 6 years preceding the filing of a petition for relief under
Chapter 7, the case must be dismissed. Notice the period of calculation: the end
of the last case, to the beginning of the new case.
Arizona Bankruptcy Law - In Practice
If a previous case was filed under chapter 11 or Chapter 13 during the
preceding 6 years, the debtor will not be allowed to receive a discharge of debts
in the subsequent case unless: 1) all the "allowed unsecured" claims in the earlier case were paid in full; or
2) payments under the plan in the earlier case totaled at least 70 percent of
the allowed unsecured claims and the debtor's plan was proposed in good faith
and the payments represented the debtor's best effort. In practice, few debtors file multiple cases. The experience of filing
bankruptcy is usually a once in a lifetime event. Most debtors benefit and learn
from the experience, then take decisive steps to insure against future filings.
The Federal process of filing necessarily incorporates state law requirements. These state law requirements are
set forth in statutes, rules and case law opinions which frequently alter the operation of law. As a result of
these precedents, Arizona bankruptcy cases are unique to the state, as well as unique to each individual who
files. All alternatives provided by law may not be available because of differing individual financial histories
or prior case filings.
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