How Often Can You File for Bankruptcy in Michigan?

There are different types of bankruptcy, and each chapter has its own wait time before you can apply again. However, people ask questions like, “How often can you file for bankruptcy in Michigan?”

As a general rule, in Michigan, one may file for bankruptcy for an unlimited number of times. However, there is a waiting period in between filings of two to eight years, depending on which type of bankruptcy is being filed.

Here are the exact waiting periods in between bankruptcies based on what type is being filed:

  • Chapter 7 filing a new chapter 7: 8 Years
  • Chapter 13 filing a new chapter 13: 4 Years 
  • Chapter 13 filing a new chapter 7: 6 Years
  • Chapter 7 filing a new chapter 13: 2 Years

There are different types of bankruptcy, but the most common types are chapter 7 and chapter 13. Each chapter has its own wait time before you can apply.

But let’s explore all the options in greater detail.

Can I file for bankruptcy more than once?

Depending on the specifics of what transpired in your bankruptcy case and the court order, you’re free to submit more than one bankruptcy petition.

However, you might not be granted a discharge of the debts in your new case if you haven’t given yourself enough time to pass since filing your previous bankruptcy case.

As mentioned earlier, the time frame depends on the situation of events. For chapter 7 bankruptcy filings, federal law states that you have to wait a period of 8 years before you can file another bankruptcy case if your debts were discharged.

If you previously filed a chapter 13 bankruptcy petition and you want to file a chapter 7 bankruptcy petition, the waiting period is 6 years. However, if you satisfied all of your unsecured debts during the initial Chapter 13 case, the waiting period can be removed.

Chapter 13 takes 3–5 years for full repayment. 

However, filing chapter 13 for the second time has a time limit of two years. This only happens in rare cases. It’s important to keep in mind that the period starts from the filing date of the previous bankruptcy case.

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How many times can you file Chapter 7 bankruptcy in Michigan?

Michigan’s state laws are identical to those in other states. Every eight years, you can file a Chapter 7 bankruptcy. The clock starts over when your case is filed, not when it is discharged.

Before re-filing for Chapter 7 bankruptcy, you must wait eight years from the original filing date if you previously did so and received a discharge of your debts.

However, before submitting a chapter 7 bankruptcy petition, you must take a means test. This test establishes if your income is sufficiently low to qualify for Chapter 7 bankruptcy protection.

In Michigan, you might be allowed to file for bankruptcy more than once, even if you’ve previously been granted a Chapter 7 or Chapter 13 discharge.

Debts like student loans, child support, tax liens, and secured debts are non-dischargeable under Chapter 7. However, utility bills, medical bills, and credit card balances can be dischargeable under Chapter 7.

In the state of Michigan, filing a second bankruptcy may seem more complicated, but with adequate legal advice from a Michigan bankruptcy attorney, your options will be made clear to you.

Sometimes, if you are going through a divorce, you may be forced to file for bankruptcy. 

In a recent article, I wrote about bankruptcy after divorce and how it affects you and your ex. And I answer the crucial question of whether it’s better financially to file before or after the divorce is finalized.

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Does bankruptcy show up on credit checks?

A bankruptcy WILL show up on credit checks.

A credit check is when you apply for credit somewhere or maybe when you apply to rent a house or apartment. If your landlord runs a credit check on you, it will show your debt loads and bankruptcy, which may determine whether or not you are financially stable to pay rent.

Accordingly, tax debts may not show on your credit report except on property; your credit report shows your credit rating.

How long will it keep showing up on credit checks?

If you seek bankruptcy protection under Chapters 7, 11, 12, or 13 of the Bankruptcy Code, that information will continue to appear on your credit report for up to 10 years after the entry of the order for relief or the date of adjudication.

A credit check is a process of researching an individual’s credit report to ascertain their financial situation and behavior. Credit checks are often done by potential money lenders, mortgage lenders, unsecured creditors, companies, etc.

However, a credit report is a report organized by the credit bureau. It shows your credit history, which may include transactions for your car loan, student loans, personal loans, and credit card debts.

The effect of bankruptcy on your credit score will also differ depending on how much debt you were able to discharge as well as the proportion of good to bad accounts on your credit report.

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Does Chapter 11 wipe out all debt?

No. When it comes to debts in chapter 11, there are limitations. Some kinds of debts are not dischargeable, these are:

  • Student loan debts
  • Unpaid child support
  • Property tax 
  • Income taxes 

There are no debt relief options for these financial obligations. However, dischargeable debts include the following:

  • Credit card bills
  • Medical bills
  • Personal loans 
  • Business loans 
  • Back rent

Reorganization bankruptcy, or Chapter 11, is a type of bankruptcy that enables a business to carry on with its operations while formulating a repayment plan for paying off or discharging its obligations.

The strategies are made to keep the company running throughout and after the bankruptcy process.

Although there are no limitations on the kinds of companies that can file for bankruptcy, small organizations have limitations or requirements according to the bankruptcy code.

A bankruptcy court 11 for small organizations may require them to seek permission before selling certain assets.

It is up to the person or corporation declaring bankruptcy to offer a debt settlement plan to pay back some or all of the debts, except excluded debts.

These debts can typically be repaid partially or fully over a 5-year period through a monthly payment system, and some may even be canceled entirely.

Chapter 11 bankruptcy in Michigan differs from liquidation bankruptcy, which forces you to sell all of your assets in order to pay off any outstanding debt.

Under Michigan bankruptcy laws, the bankruptcy trustees make use of non-exempt assets.

In chapter 11, an individual’s asset, like personal property, may not have bankruptcy protection and may be used to pay creditors. However, owners of organizations do not have to worry about their assets.

The filing fee for filing a chapter 11 bankruptcy is a lot higher than chapter 13 and 7, and you may also need to consider a credit counselor if you can afford one and a bankruptcy attorney.

The most important thing is to get a reasonable debt discharge and figure out how to pay your remaining debts.

What Actually Happens When You File For Bankruptcy


Filing for bankruptcy is something that has become so rampant due to general financial hardship.

However, this leaves you wondering how you can get the cheapest means to aid your bankruptcy process and how often you can file one in Michigan.

Some attorneys in Michigan have made it easy by offering free consultations to people who want to file for bankruptcy.

People often ask questions about the wait time between bankruptcy filings, the federal exemptions, and how filing for bankruptcy a second time can affect your financial status. Other questions asked are about the pros and cons of each chapter of bankruptcy.

This article details the answers to these questions, as well as some answers on credit checks and wage garnishments. All answers to your questions regarding bankruptcy in the state of Michigan are included in this article.

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