Consumer Bankruptcy Myths: Part II

Filing for consumer bankruptcy is a complex process, and there are many intricate requirements that can make it difficult to determine your eligibility for Chapter 7 bankruptcy, for example, or whether a certain type of debt will actually be dischargeable in your bankruptcy case. No matter what, it is important to remember that many personal bankruptcy myths exist that can cloud your thinking when it comes to filing for consumer bankruptcy. We want to dispel more of those myths by returning to information provided by the American Bankruptcy Institute (ABI), U.S. News & World Report, and NerdWallet. After you have learned more about bankruptcy myths, it is time to seek advice from an experienced Oak Park bankruptcy lawyer.

Myth: You Will Lose All of Your Belongings

Bankruptcy exemptions in Illinois allow you to exempt a wide variety of assets if you are filing for a Chapter 7 liquidation bankruptcy. You can exempt a certain amount of equity in your home, equity in your motor vehicle, personal property, retirement accounts, work tools, and other assets.

Myth: You Will Not be Able to Get a Job Due to a History of Bankruptcy

Bankruptcy has less of an effect in the long term than most people believe, and bankruptcy filings will not affect a person’s ability to get a job under most circumstances.

Myth: You can Discharge Debts Incurred Right Before Your Bankruptcy Filing

If you spend a lot of money on credit right before you file for bankruptcy, the bankruptcy court could consider this to be fraud, and it will not be dischargeable in a bankruptcy case. You should seek advice from a consumer protection lawyer about discharging debts you incurred shortly before a bankruptcy filing.

Myth: You Cannot File for Bankruptcy a Second Time

You can file for bankruptcy more than once, but there will be a waiting period that will depend upon the type of bankruptcy for which you are filing.

Myth: Filing for Bankruptcy Means You Have Been Irresponsible With Your Finances

Do not ever let someone convince you that bankruptcy means you have been irresponsible with finances. The highest rate of consumer bankruptcy cases in the U.S. stem from medical debt, which Americans incur as a result of limited health insurance options and unexpected health care costs. Bankruptcy is a way to help you get caught up on your debts or to get a fresh start so that you will not be overwhelmed with insurmountable debt.

Myth: Students Loans Cannot be Discharged

This is a common myth. While it can be more difficult to discharge student loans than some other types of debt, you need to know that student loans certainly can be dischargeable. You will not be able to have them discharged unless you try, and a bankruptcy lawyer can help you.

Seek Advice From an Oak Park Consumer Bankruptcy Lawyer

Bankruptcy is extremely complicated, and it is critical to have one of our experienced Oak Park bankruptcy attorneys on your side. To learn more about how we can assist you with your bankruptcy case, contact the Emerson Law Firm today.


See Related Blog Posts:

What Can I do to Improve My Credit After Bankruptcy?

Why Was My Bankruptcy Discharge Denied?

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