Understanding this rule is crucial if you're facing severe financial hardship again after a previous bankruptcy. Twomeows/Getty Images

Bankruptcy interest and filings have been surging this year as more households struggle under the weight of rising credit card balances , medical bills and personal loans. And while recent Fed rate cuts have offered some relief from high rates, many people are still dealing with long-standing debts that have become impossible to manage . But with more borrowers filing for or considering bankruptcy , it's important to know what happens when bankruptcy doesn't solve all your problems the first time around.

And, unfortunately, that can happen. Life is unpredictable, and things like job losses, medical emergencies, divorces and other unexp

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