Illinois Bankruptcy Lawyers - "How many times can I file bankruptcy?"

Debtors may file Chapter 7 only once during any 6 year period. If a Chapter 7 discharge was granted within the 6 years preceding the filing of a petition for relief under Chapter 7, the case must be dismissed. Notice the period of calculation: the end of the last case, to the beginning of the new case. Notoriously, bankruptcy lawyers representing competing interests disagree on the proper calculation period.

Illinois Bankruptcy Lawyers - In Practice

If a previous case was filed under chapter 11 or Chapter 13 during the preceding 6 years, the debtor and their bankruptcy lawyer will not be allowed to receive a discharge of debts in the subsequent case unless: 1) all the "allowed unsecured" claims in the earlier case were paid in full; or 2) payments under the plan in the earlier case totaled at least 70 percent of the allowed unsecured claims and the debtor's plan was proposed in good faith and the payments represented the debtor's best effort. In practice, few debtors or their bankruptcy lawyers file multiple cases. The experience of filing is usually a once in a lifetime event. Most debtors benefit and learn from the experience, then take decisive steps to insure against future filings.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

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