Although you have spent most of your life being a careful spender and putting 10% of your paychecks into your savings, your hard work to avoid financial turmoil has proven ineffective. With being out of work, it is becoming more and more challenging to navigate your current financial status. What is even worse is that you are not even considering bankruptcy as a viable option, as it was your resolution to your debt problems several years ago when medical debt became overwhelming and you were unable to work because of your medical condition. So now you are left wondering what options you or any other individual in Illinois has to deal with debt when they have already filed for bankruptcy.
Filing for multiple bankruptcies
The ability to file for bankruptcy again is dependent on the type of bankruptcy you previously filed for. If your first filing was a Chapter 7 bankruptcy and you seek to file another Chapter 7 in order to erase certain debt and start fresh, then eight years needs to pass before you can file for another Chapter 7 bankruptcy.
On the other hand, if you seek to file for a Chapter 13 bankruptcy following a Chapter 7 filing, it must have been four years after filing for Chapter 7 before a Chapter 13 bankruptcy can be filed for.
Filing after Chapter 13
If a Chapter 13 is filed for first, a waiting period must occur before a second filing can occur. If one seeks to file another Chapter 13, this must occur at least two years after their previous filing. In contrast, if a Chapter 7 is filed for, it must have been at least 6 years since the Chapter 13 bankruptcy filing.
Keep in mind
There is an exception, however. If there was no discharge of debts received when an individual first filed for Chapter 7, one can refile for another Chapter 7 before the eight-year mark and still receive a discharge. Additionally, if one files for a Chapter 13 four years following a Chapter 7 filing, it is possible to have a very low monthly Chapter 13 payment plan while also receiving a full discharge of the remaining balance once the three-to-five-year plan is completed.
Filing for bankruptcy is an overwhelming process, and you should be well informed of your options, even if you have a bankruptcy in your past. Navigating a debt relief process can be challenging, making it imperative that you are fully aware of your rights and options.