Let me explain when you can file for bankruptcy again in Illinois. The rules are pretty straightforward, but they change based on the type of bankruptcy you filed before.
For folks looking to file Chapter 7 (that’s where they wipe out your debts):
You need to hold off for 8 years if you did Chapter 7 before. However, if you previously went through Chapter 13, the waiting period drops to 6 years – unless you managed to pay back 70% or more of what you owed to people without collateral. In that case, you might be able to file sooner.
Now, if you’re thinking about Chapter 13 (where you set up a payment plan):
The waiting period is shorter. You only need to wait 4 years after Chapter 7 or 2 years after a previous Chapter 13.
Important legal notice: Should your previous bankruptcy case have been dismissed by the court, be advised that a mandatory waiting period of 180 days may be imposed before subsequent filing will be permitted. Furthermore, any attempt to file before the expiration of applicable waiting periods may result in the court denying debt discharge.
The timing requirements detailed herein are subject to individual circumstances and judicial discretion. It is strongly recommended that parties seeking to file bankruptcy retain qualified legal counsel licensed in Illinois to evaluate their situation.
Just remember—these are the basic rules, but every situation differs. Before making any decisions, you might want to talk to a bankruptcy lawyer who knows Illinois law inside and out.
