What's the two-year rule for Chapter 13 bankruptcy and how does it impact borrowers?

The two-year rule can have a big impact on your timeline for filing a second Chapter 13 bankruptcy case. Getty Images/iStockphoto

When you've completed a Chapter 13 bankruptcy repayment plan and earned a discharge, the hope is that your financial troubles are behind you. Life doesn't always unfold that neatly, though, especially in today's tough economic landscape. Job losses, medical emergencies or other unexpected expenses and issues can trigger a new round of financial strain, even after a successful bankruptcy. And, in some situations, filing for Chapter 13 once again can provide the structure needed to regain control — but there's a catch.

Bankruptcy law sets out strict timelines governing how often you can receive discharges, which vary based on the type of bankruptcy you