Illinois Bankruptcy Myths

Illinois Bankruptcy Myths

Myth #1: It’s nearly impossible to file for bankruptcy under the new laws.
False. With the professional services bankruptcy attorney the new laws can actually increase the benefits of filing for many individuals.

Myth #2 If I am married, both my spouse and I must file for bankruptcy.
False. Though in some instances it can be beneficial for both spouses to file, in no way is this a requirement by law.

Myth #3: If you file for bankruptcy, you will loose everything.
False. Illinois bankruptcy exemptions allow for individuals to keep certain kinds of property such as their home and transportation.

Myth #4: My credit will be ruined for the remainder of my life if I file for bankruptcy.
False. As stated in our FAQs: If you are truly a candidate for bankruptcy you will be less of a risk to creditors after filing than you were before. Bankruptcy will stay on your credit record for about 10 years. The further in the past your bankruptcy becomes the less it will have an effect on your credit. Just two years after filing bankruptcy individuals may be eligible for mortgage loans on the same terms as others with similar down payments and current financial standings.

Myth #5: Only complete failures file for bankruptcy.
False. Particularly in today‚Äôs economy it’s good, honest, hard-working people just like you and I who file as a last resort. Many individuals realize that they have a responsibility to put their families financial well being first and file bankruptcy. Many individuals are saddled with debt due to a circumstance such as divorce, job loss, or serious illness. Regardless of the reason, filing bankruptcy can be one of the most positive, responsible steps you can take.

Myth #6: Even after I file for bankruptcy, my creditors will harass me.
False. When you file for bankruptcy an automatic stay goes into effect that by law STOPS creditors from hassling you regarding your debt.

Myth #7: You can’t eliminate back taxes through bankruptcy.
False. In many instances income taxes three (3) years or older can be eliminated.

Myth #8: You can only file for bankruptcy once.
False. Though the goal is that one bankruptcy will be enough to get you back on track, multiple filings are possible under the law.

Myth #9: You can pick which debts and property are affected by your bankruptcy.
False. Unfortunately this is not true. When you file for bankruptcy you have to list all of your property and debts. Depending on what type of bankruptcy you file for you will likely have the opportunity to retain important assets.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney regarding your individual situation.