Chapter 7 bankruptcy offers individuals and families struggling with debt the opportunity to eliminate unsecured debt to get a fresh start financially. While some debt such as taxes, child support, alimony, student loans, and certain court judgements may not be dischargeable, unsecured debt including credit card debt and medical bills often are dischargeable in a Chapter 7 bankruptcy. That said, every case is unique, so it is important to discuss your situation with an experienced bankruptcy lawyer to determine the best way to eliminate the maximum amount of debt.
Sometimes individuals and families continue to struggle financially despite filing for bankruptcy and wonder if they can file a second time to eliminate more debt. While it is possible to file for bankruptcy multiple times, Chapter 7 filers must wait eight years from the date they filed previously to file Chapter 7 bankruptcy again.
Of course, it is possible to file under another bankruptcy chapter, which may reduce the waiting time between filings. For example if an individual already filed a Chapter 7, they may be able to file for a Chapter 13 bankruptcy after four years. If an individual initially filed for a Chapter 13, there is normally a six year period before filing for bankruptcy again, however the waiting time may be waived if a certain percentage of debt is been paid off under the Chapter 13 repayment plan.
If you have questions regarding filing for bankruptcy again, working with an experienced attorney can help you decide the best course of action. Contact the Peoria, Illinois bankruptcy law office of Charles E. Covey for immediate assistance today.