A Bankruptcy Attorney You Can Trust Welcome to Chicago Bankruptcy Clinic in Oak Brook, IL
 

If you are going through a divorce, or expect to be in the near future, the answer to this question depends on many factors. An attorney can be instrumental in helping you make the right choice about when to file for bankruptcy in relation to a divorce. Filing for divorce and bankruptcy simultaneously means the judge cannot split assets until the bankruptcy process has concluded. If you file before a divorce, you and your ex-spouse can share legal expenses and filing fees. If your divorce is contentious, it may benefit you to wait until the divorce is complete before filing bankruptcy. Our attorney and his team are here to help you optimize your timing.

No—once the court has approved your customized repayment plan (as in Chapter 13) or collected and liquidated your non-exempt assets (as in Chapter 7), a trustee will be responsible for distributing payments to your creditors. 

When you file Chapter 7 bankruptcy, student loans are considered unsecured debt, meaning they can be discharged. Other examples of unsecured debt include credit cards, medical bills, and utility bills.

Chapter 7 bankruptcy will stay on your credit report for seven to 10 years. Chapter 13 is typically lifted from your credit report seven years after your filing.

Under Chapter 7, it takes four years to qualify for a conventional mortgage, two years for Federal Housing Administration or Veterans Affairs loans, and three years for a loan through the United States Department of Agriculture. Under Chapter 13, it takes two years to qualify for a conventional mortgage, one year for FHA or VA, and one year for USDA.

There is no limit to the number of times you can file bankruptcy in your life, but there are restrictions regarding when you become eligible for a subsequent filing. If you have filed Chapter 7 before, you must wait eight years from the date of your previous filing until you can file for Chapter 7 again, or four years until you can file for Chapter 13. If you have filed Chapter 13 in the past, you must wait two years from the date of your previous filing to file for Chapter 13 again, or four years until you can file for Chapter 7.

Chapter 7 bankruptcy can clear your federal or state income tax debt. However, bankruptcy cannot clear all taxes. The courts do not allow payroll taxes and fraud penalties, for example, to be discharged.