How Often Can You File Bankruptcy in Illinois
In a Nutshell
Y'all can file more than one defalcation in a lifetime. How many times depends on how long it'south been since your last defalcation case and what blazon of defalcation y'all filed. We'll break information technology downwardly for you.
Accept you lot filed bankruptcy in the past but are faced with a financial state of affairs that you tin can't resolve despite your best efforts? If you're facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or any other type of debt you're no longer able to pay, y'all can ask the court for bankruptcy protection a 2nd fourth dimension.
Know that you're not solitary. A 2006 paper on a plant that eight% of bankruptcy filers finish up filing bankruptcy again. [ 1 ] The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, take not had much of an impact on this number. [ 2 ]
In this article, we'll wait at just how many times someone can file bankruptcy depending on the blazon of bankruptcy and the corporeality of fourth dimension that has passed since the first instance. Nosotros'll too take a look at what other debt-relief options are available if filing defalcation is not an selection and whether a bankruptcy chaser can aid yous file a second bankruptcy sooner.
Bankruptcy is a legal fashion for individuals who can no longer afford to pay their debts to go permanent debt relief through a bankruptcy discharge. The Defalcation Lawmaking provides for three types of consumer bankruptcies known as Chapter 7 defalcation, Chapter 11 bankruptcy, and Chapter 13 bankruptcy.
Different Types of Bankruptcy Explained
A Chapter 7 bankruptcy eliminates most debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter vii defalcation process liquidates your non-exempt avails to partially repay your debts. A Affiliate xiii defalcation allows you to go on all of your belongings as long as the monthly repayment plan pays for the value of your assets. The debts that don't go paid as part of the repayment plan are discharged once the programme has been completed. The discharge of your debts gives you the fresh start you need.
The Chapter 11 bankruptcy process provides similar relief to that provided in Chapter 7 and Chapter xiii, but is generally reserved for filers with businesses or significant assets and is a lot more expensive than even a Chapter xiii bankruptcy. This article will focus specifically on Chapter vii and Chapter 13 bankruptcy.
How information technology works
There is no limit to how many times someone can seek defalcation protection. To preclude an corruption of the bankruptcy process, the Bankruptcy Code requires a certain amount of time to laissez passer between cases that consequence in a belch. This prevents people from running up high credit card balances and other types of debt and filing bankruptcy every few years.
What are the Time Limits
The blazon of bankruptcy filed in the previous case determines the time limit between cases. The time starts to run on the date the prior instance is filed with the bankruptcy court. The date the belch was entered doesn't affair.
Chapter 7 bankruptcy ➡️ Affiliate 7 defalcation: 8 years
This is the longest corporeality of time between cases required by the Defalcation Code. Chapter seven provides the quickest form of debt relief through a bankruptcy filing and doesn't require the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter vii defalcation ➡️ Chapter 13 defalcation: iv years
It is possible to file Chapter 13 defalcation before long after receiving a Chapter 7 discharge, the filer simply won't exist eligible to receive a Chapter 13 discharge in the second case. And then, someone who successfully discharges their unsecured debts through Chapter vii tin file a Affiliate 13 bankruptcy to pay off tax debts or other types of debt that survived the prior case.
Chapter 13 bankruptcy ➡️ Chapter 7 bankruptcy: 6 years
This waiting menses can be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan (or in some cases where y'all paid back lxx% of your total debts) and the original case was found to exist in skillful religion. Plus, since a Affiliate xiii repayment plan tin can have up to v years to complete earlier resulting in a belch, it's possible to file Chapter 7 defalcation about 1 yr after receiving a Chapter xiii belch.
Chapter 13 defalcation ➡️ Chapter 13 bankruptcy: 2 years
If you previously filed a Affiliate 13 case and received a discharge and are looking to file a Chapter xiii case over again, you take to await at least ii years from the filing engagement of the first case before filing the second case. This is pretty rare. The minimum length of a Affiliate 13 repayment plan is iii years. Receiving a discharge before completing a three yr program is possible only if an unexpected hardship makes completing the plan impossible.
Repeat Chapter 13 bankruptcy filings are sometimes used to keep the payments on the filer's student loans or revenue enhancement debts manageable. Since these types of debts can't be discharged, the fourth dimension limit betwixt cases is less of import.
Tin a defalcation attorney assistance me file bankruptcy sooner?
A bankruptcy attorney tin can't aid yous get around the time limits, but they may be able to help you lot file a different type of bankruptcy than the one you filed before and confirm the primeval date your second case tin be filed. This is especially true if you filed a Chapter 7 bankruptcy but didn't become a belch. Only a bankruptcy lawyer can give you legal communication about how soon your second bankruptcy can be filed. They tin also assist y'all go a court lodge to make sure your automatic stay doesn't elapse before your discharge is entered.
Do I have other debt-relief options?
If you are in between bankruptcy filings and unable to file another bankruptcy, you may accept to consider other debt-relief options similar debt consolidation or debt settlement. These alternatives tin be tricky to navigate, so offset by getting a complimentary evaluation of your financial situation through credit counseling. Also, remember that well-nigh constabulary firms handling bankruptcy matters offer free consultations.
Let's Summarize...
In short, you can file more than than ane defalcation in a lifetime. How many times depends on how long it'due south been since your last bankruptcy case. If you previously filed a Chapter 7 defalcation and want to file Chapter 7 again, the time period is 8 years from when you concluding filed. If yous filed Chapter seven and want to file a Chapter 13, the time period is iv years from when y'all filed Affiliate 7. If you filed a Chapter 13 and desire to file another Affiliate 13, the time period is two years from when you concluding filed. And, if you filed a Chapter 13 and want to file a Chapter vii the time period is six years from when you filed.
If you lot're eligible to file Chapter 7 bankruptcy, just tin can't afford to rent a bankruptcy attorney, Upsolve's free tool can help you prepare your defalcation forms and complete the defalcation process on your own.
Sources:
- American Bankruptcy Establish. ( 2006 ). Bankruptcy Echo Filings. Constabulary Review, fourteen(1), 169-200 .
- Miller, Michelle Chiliad. & Miller, L. ( 2008, June ). Echo Filers Under the BAPCPA: A Legal and Economic Analysis. Norton Annual Survey of Bankruptcy Law, p. 509, 2008 . Retrieved August 4, 2020, from https://ssrn.com/abstract=1983377
Source: https://upsolve.org/learn/how-often-can-you-file-bankruptcy/
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