Filing Two Bankruptcies Within a Year Can Be a Major Problem.

By statute the automatic stay in a bankruptcy case stops to most collection activity, so it’s really important.   It’s your protection from creditors.  However, you lose the automatic stay if you have filed for bankruptcy within the previous year.

The automatic stay will last only thirty days if you filed a second bankruptcy case within a year of your first case. You can file a motion to extend it beyond this 39 days, but the hearing for the motion must be held prior to the lapse of the thirty day period.  And there is no guarantee that the court will grant the motion to extend the stay beyond the 30-day limit.  You will need to show that the multiple filings were not in bad faith.

If the stay terminates at the 30-day mark, the property of your bankruptcy estate is protected but post filing income and later acquired property is not protect.

If you had more than two cases dismissed during the previous year, you won’t even get the initial 30-day stay that would apply if you had only one bankruptcy case pending within the past year. Again, you can file a motion to have the court reinstate the automatic stay, but it is unlikely the court will grant the motion.