If you’re not good with money, you may have been forced to file with bankruptcy in order to reduce or even eliminate your mountain of debt. Unfortunately, not everybody is able to get out of debt even after filing for an bankruptcy and may be stuck in the regrettable position of considering filing for a second bankruptcy. If you are in this position, you will need to consult with your Chicago bankruptcy lawyer in order to be sure that you are still eligible to file for bankruptcy. Your options may be limited if you have recently filed for bankruptcy.
Chapter 7 Bankruptcy
The rules for filing multiple bankruptcies depend on the type of bankruptcy you have previously filed and which type of bankruptcy you plan to file. If you have recently filed for chapter 7 bankruptcy, you will not be able to file for another chapter 7 bankruptcy for the next eight years. If you recently filed for chapter 13 bankruptcy there is a slightly shorter waiting period. You must only wait six years from a chapter 13 bankruptcy before you file for a chapter 7 bankruptcy.
Chapter 13 Bankruptcy
The rules for chapter 13 bankruptcy are slightly more lenient than the Chapter 7 rules. The only required waiting period between chapter 13 bankruptcies is two years. As long as you have not filed for chapter 13 bankruptcy within the past two years you are free to file for another bankruptcy. However if you have filed for a chapter 7 bankruptcy any time in the past four years it is a different story. Because chapter 7 is a more serious type of bankruptcy the waiting period is twice as long. The waiting period between chapter 7 bankruptcy and a chapter 13 bankruptcy is four years.
Although bankruptcy is a necessary tool for some people’s financial well being, the best advice is to avoid filing for bankruptcy if at all possible. Consulting your Chicago bankruptcy attorney may help you to find ways to avoid bankruptcy. Your credit record will have a giant mark on it for ten years after filing for any type of bankruptcy, causing many lenders to be extremely wary of providing loans. This can hinder credit card applications, car loans and mortgages. Multiple bankruptcies should be avoided as they can make the already difficult process of getting a credit card or car loan even more difficult. Except as an absolute last resort, multiple bankruptcies should not be used.
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