Bankruptcy can provide much-needed relief for individuals overwhelmed by debt, allowing them to start afresh and regain control of their finances. However, it’s crucial to understand the rules and limitations surrounding bankruptcy filings. In the state of Illinois, there are specific regulations regarding how often can you file for bankruptcy. This article explores the frequency of bankruptcy filings in Illinois, along with the steps involved in the process.
What Does Bankruptcy Mean?

Bankruptcy is a lawful procedure that presents individuals and businesses burdened by substantial debt with a chance to obtain relief and begin afresh. It involves formally submitting a petition to the court, which then evaluates the debtor’s financial situation to determine the most appropriate resolution. The primary aims of bankruptcy are to provide debtors with relief from overwhelming debts and ensure a fair distribution of assets among creditors.
How Often Can You File Bankruptcy In Illinois?
In Illinois, the frequency of filing for bankruptcy is subject to specific rules and limitations. The frequency primarily depends on the type of bankruptcy previously filed and the time that has passed since the previous discharge.
For Chapter 7 bankruptcy, individuals can file for and receive a discharge every eight years. This means that if you have filed for Chapter 7 bankruptcy in the past and received a discharge, you must wait a minimum of eight years before you can file for Chapter 7 bankruptcy again and receive another discharge.

In the case of Chapter 13 bankruptcy, which involves creating a repayment plan to pay off debts over a specified period, individuals can file again after two years from a previous Chapter 13 discharge or four years from a Chapter 7 discharge. This allows individuals to seek relief through a new Chapter 13 repayment plan if they have previously completed a Chapter 13 plan or have gone through a Chapter 7 bankruptcy.
It’s important to note that these time limitations apply specifically to receiving a discharge in a subsequent bankruptcy case. If you file for bankruptcy before the minimum waiting period has passed, you may still be able to proceed with the case, but you may not be eligible for a discharge of your debts.
Understanding the frequency limitations of filing for bankruptcy in Illinois is crucial when considering financial options. It’s recommended to consult with an experienced bankruptcy attorney who can provide guidance tailored to your specific circumstances and help ensure compliance with all legal requirements.
Pros and Cons of Bankruptcy:

Before delving into the frequency of bankruptcy filings, it’s important to weigh the pros and cons of this financial decision. Here are some key points to consider:
Pros:
- Debt Relief: Bankruptcy offers a fresh start by discharging eligible debts, allowing individuals to regain financial stability.
- Automatic Stay: Once bankruptcy is filed, an automatic stay is issued, putting a halt to creditor actions such as collection calls and wage garnishments.
- Rebuilding Credit: While bankruptcy impacts credit in the short term, it offers an opportunity to rebuild credit over time by demonstrating responsible financial behavior.
Cons:
- Credit Impact: Bankruptcy stays on credit reports for several years, affecting creditworthiness and potentially making it harder to obtain loans or credit in the future.
- Asset Liquidation: Depending on the type of bankruptcy filed, non-exempt assets may be sold to repay creditors.
- Public Record: Bankruptcy is a public record, meaning that it can be accessed by anyone who searches for it.
Steps to File for Bankruptcy in Illinois:
1. Evaluate Your Financial Situation:
Assess your debts, income, and assets to determine if bankruptcy is the right solution for you. Consider consulting with a bankruptcy attorney for professional guidance.
2. Complete Credit Counseling:
Before filing for bankruptcy, you must complete a credit counseling course from an approved agency. This requirement aims to ensure individuals have explored alternatives to bankruptcy.
3. File Bankruptcy Petition:
Prepare and file your bankruptcy petition with the U.S. Bankruptcy Court for the district where you reside. Include necessary documentation, such as income, debts, expenses, and a list of assets.
Conclusion:

In Illinois, the frequency of bankruptcy filings depends on the type of bankruptcy previously filed and the amount of time that has passed since the previous discharge. For Chapter 7 bankruptcy, an individual can file and receive a discharge every eight years. In the case of Chapter 13 bankruptcy, individuals can file again after two years from a previous Chapter 13 discharge or four years from a Chapter 7 discharge. It’s essential to consult with an experienced bankruptcy attorney to ensure compliance with all legal requirements and understand the specific circumstances of your case.
Remember, bankruptcy should be considered as a last resort after exploring alternative debt relief options. It’s a complex legal process that requires careful consideration and professional guidance. By understanding the regulations and following the necessary steps, individuals in Illinois can make informed decisions regarding their financial well-being.
FAQs

1. How often can I file for Chapter 7 bankruptcy in Illinois?
In Illinois, you must wait at least eight years from the date of a previous Chapter 7 bankruptcy discharge before you can file for another Chapter 7 bankruptcy.
2. How often can I file for Chapter 13 bankruptcy in Illinois?
If you previously received a discharge in a Chapter 7 bankruptcy, you must wait at least four years before filing for Chapter 13 bankruptcy in Illinois. However, if you received a discharge in a previous Chapter 13 bankruptcy, you only need to wait two years before filing another Chapter 13 bankruptcy.
3. Can I file for bankruptcy in Illinois if my previous bankruptcy case was dismissed?
If your previous bankruptcy case was dismissed, the waiting period to file another bankruptcy case in Illinois will depend on the reason for the dismissal. Generally, if your case was dismissed voluntarily, you can usually file again right away. If your case was dismissed involuntarily, you may need to wait at least 180 days before filing again.
4. What if I want to file for the same type of bankruptcy that I previously filed in Illinois?
If you want to file for the same type of bankruptcy that you previously filed, the waiting period will depend on whether you received a discharge in the previous case. For Chapter 7 bankruptcy, the waiting period is eight years from the date of a previous discharge. For Chapter 13 bankruptcy, the waiting period is four years if you received a discharge in a previous Chapter 7 case and two years if you received a discharge in a previous Chapter 13 case.
5. Can I file for bankruptcy in Illinois if I have a pending bankruptcy case in another state?
If you have a pending bankruptcy case in another state, you generally cannot file for bankruptcy in Illinois until the previous case is closed or dismissed.
6. How does the timing of a previous bankruptcy filing affect my ability to file again in Illinois?
The timing of a previous bankruptcy filing affects the waiting period before you can file again in Illinois. It is important to consult with a bankruptcy attorney to understand the specific timing requirements based on your previous bankruptcy filing.
7. Can I file for bankruptcy in Illinois if I have already received a discharge in a previous bankruptcy case?
The waiting periods mentioned earlier apply if you have already received a discharge in a previous bankruptcy case. You will need to wait the specified time period before filing for bankruptcy again in Illinois.
8. Are there any restrictions on filing for bankruptcy multiple times in Illinois?
While there are waiting periods between bankruptcy filings, there is no limit to the number of times you can file for bankruptcy in Illinois. However, it is important to consider the potential consequences and long-term impact on your credit and financial situation.
9. What if my previous bankruptcy case was dismissed without a discharge?
If your previous bankruptcy case was dismissed without a discharge, there is generally no waiting period to file for bankruptcy again in Illinois. However, it is crucial to address the reasons for the dismissal and work with a bankruptcy attorney to ensure a successful filing.
10. Can I file for bankruptcy in Illinois if I previously filed for bankruptcy in another state?
Yes, you can file for bankruptcy in Illinois even if you previously filed for bankruptcy in another state. However, it is essential to consult with an experienced bankruptcy attorney to understand the implications and navigate the process effectively.
Glossary
1. Bankruptcy: A legal process that provides individuals and businesses overwhelmed by debt with an opportunity for relief and a fresh start.
2. Discharge: The release from personal liability for certain types of debts through a bankruptcy proceeding.
3. Chapter 7 Bankruptcy: Also known as “liquidation bankruptcy,” it involves the sale of non-exempt assets to repay creditors, with any remaining eligible debts discharged.
4. Chapter 13 Bankruptcy: Referred to as “reorganization bankruptcy,” it involves creating a repayment plan to pay off a portion of debts over a specified period, typically 3 to 5 years.
5. Waiting Period: The required duration individuals must wait between bankruptcy filings to be eligible for another bankruptcy discharge.
6. Previous Bankruptcy Filing: Refers to a bankruptcy case previously filed by an individual in the past.
7. Bankruptcy Dismissal: The termination of a bankruptcy case without obtaining a discharge, usually due to non-compliance with court requirements.
8. Voluntary Dismissal: When the debtor initiates the dismissal of their bankruptcy case.
9. Involuntary Dismissal: When the court dismisses a bankruptcy case against the debtor’s wishes.
10. Pending Bankruptcy Case: A bankruptcy case that is still ongoing and has not yet been closed or dismissed.
11. Discharge in a Previous Case: Refers to receiving a discharge of debts in a prior bankruptcy case.
12. Domicile: The permanent residence or place where an individual has a settled and permanent connection.
13. Bankruptcy Attorney: A legal professional who specializes in guiding individuals through the bankruptcy process and providing legal advice and representation.
14. Bankruptcy Filing: The submission of a formal petition and relevant documents to initiate a bankruptcy case.
15. Bankruptcy Proceedings: The legal actions, hearings, and administrative steps involved in a bankruptcy case, including the evaluation of the debtor’s financial situation and the resolution of debts.
Note: It is important to consult with a bankruptcy attorney for specific guidance and accurate information regarding bankruptcy laws and regulations in Illinois.