Common Bankruptcy Myths

 

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Common Bankruptcy Myths

1) Myth: You will lose all your property.

Certain assets are exempt from liquidation in a Chapter 7 bankruptcy, and a Chapter 13 bankruptcy does not result in a loss of your assets at all. Exemptions under Illinois law provide for assets that the debtor can keep and some assets, like pensions, are beyond the reach of bankruptcy trustees and creditors. When you contact the Law Offices of Paul Marinov,P.C.., an attorney can advise you how this will work in your case, and what property is exempt under Illinois law.

2) Myth: You can’t work and file bankruptcy.

Having a regular and steady income is a requirement to file for Chapter 13. To qualify for Chapter 7 bankruptcy, a debtor must past the “means test”. The means test is comparing the debtor’s average income for the past six months to the median income for households of the same size in the debtor’s state of residence. If the debtor’s income is less than or equal to the state median income, the debtor “passes” the means test and may file Chapter 7, which is the case for the vast majority of bankruptcy debtors under Chapter 7.

3) Myth: If you are married, both spouses must file bankruptcy.

If you are married, it is not required by law that you both file for bankruptcy. However, it is important that your attorney consider the specifics of your situation to determine whether joint filing will be more beneficial for your financial future.

4) Myth: Even after you file for bankruptcy, creditors can still contact and harass you for the money you owe.

False. The filing of a bankruptcy case, under any chapter of the Bankruptcy Code, triggers an” automatic stay ” order prohibiting creditors from contacting you to collect on the money you owe.

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I am grateful and thankful to Mr. Paul Marinov for handling my Chapter 7 Bankruptcy case . Mr. Paul Marinov is professional ,kind and helpful .I highly recommend him to anyone in need of a bankruptcy attorney.

Galya

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