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?

Comments

Post a Comment

Popular posts from this blog

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more