| Myth #1: |
It's nearly impossible to file for bankruptcy under the new laws. |
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False. A professional bankruptcy attorney can help navigate you through the complicated bankruptcy code and utilize the new laws to increase the benefits of filing for many individuals. |
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| Myth #2: |
If I am married, both my spouse and I must file for bankruptcy. |
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False. If one spouse has a majority of the debt only under their name, they can file without the other spouse. Note that if both spouses have debts in which they share the liability, they should file together or the creditors can demand payment on the entire debt from the spouse who did not file. |
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| Myth #3: |
If you file for bankruptcy, you will loose everything. |
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False. Illinois bankruptcy exemptions allow for individuals to keep certain kinds of property such as their home and transportation. |
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| Myth #4: |
My credit will be ruined for the remainder of my life if I file for bankruptcy. |
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False. Filing bankruptcy wipes a record of unpaid bills, collection companies, and high balances clean. 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. |
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| Myth #5: |
Only complete failures file for bankruptcy. |
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False. Particularly in today’s 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. |
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| Myth #6: |
Even after I file for bankruptcy, my creditors will harass me. |
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False. When you file for bankruptcy an automatic stay goes into effect that by law STOPS creditors from hassling you regarding your debt. |
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| Myth #7: |
You can't eliminate back taxes through bankruptcy. |
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False. In many instances income taxes three (3) years or older can be eliminated. |
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| Myth #8: |
You can only file for bankruptcy once. |
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False. Though the goal is that one bankruptcy will be enough to get you back on track, multiple filings are possible under the law. |
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| Myth #9: |
You can pick which debts and property are affected by your bankruptcy. |
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False. When filing for bankruptcy, the law requires you list all of your property, assets, and debts. The law also provides exemptions to protect retirement and bank accounts, vehicles, primary residences, and many other assets from being liquidated in a bankruptcy. |
