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Though filings down, there are many repeat bankruptcy filers

Bankruptcies are reportedly down 12 percent just from 2012 to 2013.  This is likely in part due to lower unemployment.  However, restrictive lending practices is also claimed to have played a role as well.

But while these filings are said to have decreased, there still remains a large number of individuals declaring bankruptcy who are repeat filers.  It is estimated that 30 percent of bankruptcy filings in 2012 came from individuals who had filed bankruptcy in prior years.

Individuals do have to wait a certain period of time before again filing bankruptcy. For example, individuals have to wait eight years before once again filing for Chapter 7 bankruptcy. Individuals filing for Chapter 13 bankruptcy are required to wait six years before filing again.

In any case, the filing of bankruptcy should never be taken lightly. For certain Illinois residents it could in certain circumstances affect one's future credit.

On the other hand, filing of bankruptcy could prove to be a fresh start when an individual is facing overwhelming debt and appears to have few other financial choices. Individuals will wish to know all of their legal options before filing for either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 could allow an individual under certain circumstances to erase all of their debts. There are certain debts that cannot be disclaimed, however, and not everyone is qualified to file for this option. Chapter 13, on the other hand, allows for a filer to propose a payment plan to the court that will allow debts to be repaid over a certain period. Successful completion of such a payment plan could mean additional debts will be erased.

Individual circumstances will sometimes determine what sort of plan would work best. Any consideration should be addressed to an experienced bankruptcy attorney who understands the federal and applicable state laws that would apply to bankruptcy filings.

Source: Epoch Times, "Bankruptcy Filings Down by 12 Percent," Heide Malhotra, Nov. 6, 2013

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