How Often Can You File for Bankruptcy in Illinois?
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) aims to decrease abuse of the bankruptcy code by debtors who file for bankruptcy repeatedly and strategically while depriving their creditors of payment. As a result, Illinois debtors have limits on their ability to file for bankruptcy.
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Repeat Filing
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If a debtor has filed for Chapter 7 bankruptcy and received a discharge under this chapter, the debtor cannot file for Chapter 7 bankruptcy again until eight years after he received a discharge. If the debtor filed for Chapter 7 bankruptcy and received a discharge under this chapter, the debtor cannot file for Chapter 13 bankruptcy again until four years after a previous discharge. If the debtor has filed for Chapter 13 bankruptcy and has received a discharge under this chapter, he cannot file for Chapter 13 bankruptcy again until two years after a previous discharge.
Bar for Misconduct
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A debtor who wishes to file for Chapter 7 or Chapter 13 bankruptcy but has had a bankruptcy petition dismissed in the previous 180 days for willful failure to appear before the court or to comply with court orders cannot file for any chapter of bankruptcy. In addition, any debtor who wishes to file for bankruptcy but has voluntarily dismissed a case after a creditor rightfully attempted to repossess property cannot file for any chapter of bankruptcy.
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Purpose of BAPCPA
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The Bankruptcy Abuse Prevention and Consumer Protection Act followed more than 10 years of legislation aimed at curbing the perceived manipulation and exploitation of the bankruptcy code. Members of Congress expressed concerns that bankruptcy had become a first stop rather than a last resort for people who could not pay their bills; that bankruptcy relief had become too easy to obtain; and that debtors were not sufficiently counseled about financial management and bankruptcy. Therefore, Illinois debtors can file for bankruptcy again only after a certain number of years have passed. The opportunity to repeat file also depends on the results of previous bankruptcy cases.
Credit Counseling
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As a result of BAPCPA, Illinois debtors must complete a credit-counseling session prior to filing a bankruptcy petition. The credit counseling session consists of an analysis of the debtor's financial situation, the development of a personal budget for the debtor and a discussion of the debtor's options.
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References
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