- Texas follows federal laws regarding how often debtors can file bankruptcy in Texas. As of 2011, debtors may only file for Chapter 7 bankruptcy once every eight years or for Chapter 13 bankruptcy once every six years. This law stops debtors from abusing the bankruptcy system by engaging in destructive financial habits and using bankruptcy to wipe out debts. There are no state laws shortening or lengthening these periods.
- Although a debtor can only file for Chapter 7 bankruptcy once every eight years, debtors in Texas can convert an existing Chapter 13 bankruptcy to a Chapter 7 bankruptcy during this time period. For example, suppose you filed for Chapter 7 bankruptcy five years ago and then continued to have financial problems, so you filed for Chapter 13 bankruptcy. You can ask the court to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy even though the eight-year limit has not expired.
- The Bankruptcy Act of 2005 phases out the automatic stay for serial filers to protect creditors against abuse of the bankruptcy system. As of 2011, if a Texas debtor filed for bankruptcy within the past year and the case was dismissed, the automatic stay lasts only 30 days. If two or more cases were dismissed in the past year, the debtor is not entitled to any automatic stays. However, if a debtor files for Chapter 13 after his Chapter 7 case is dismissed, he is entitled to a full automatic stay.
- If a debtor's case is dismissed because she either refused to comply with a court order or voluntarily dismissed it after a creditor obtained relief from an automatic stay, that debtor cannot file for bankruptcy for 180 days. The debtor cannot file for either type of bankruptcy if this rule applies. For example, if a Chapter 7 case was dismissed, the debtor cannot file for Chapter 13 bankruptcy for 180 days, nor can she file a new Chapter 7 case.
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