June 9, 2016
1. There is a minimum amount of debt required to file for bankruptcy
- Bankruptcy laws have not set any minimums on the amount of debt needed in order to qualify for bankruptcy. If your debt is beyond your ability to pay, you can opt to file for bankruptcy, however, if your debt exceeds certain amounts, you may be required to file a certain type of bankruptcy.
2. You will not be able to file for bankruptcy if you work a “good paying” job
- Just like there are no limits on the minimum debt required to file for bankruptcy there are also no income limits on who can file for bankruptcy. The amount of money you have left over to pay your creditors after subtracting allowable expenses does determine the type of bankruptcy you can file. This is referred to as disposable income.
3. If you are married both spouses must file for bankruptcy
- Spouses may file a joint case, however, a joint filing is not required. It is not uncommon for one spouse to accrue a large amount of debt only in their name, especially in cases involving businesses that have closed. In many instances only one spouse will file for bankruptcy.
4. Creditors will continue to harass you and your family after you file for bankruptcy
- After you file for bankruptcy the automatic stay comes into effect. The Automatic Stay is an injunction that halts actions by creditors to collect debts from a debtor who has declared bankruptcy. If a creditor violates the automatic stay, you have the right to bring them before the Court of Contempt of Court. After you file for bankruptcy creditors must leave you alone or endure the penalties. Most creditors are very good about complying with the automatic stay.
5. When you file for bankruptcy you can choose which debts and property you wish to list
- You must list all of your debts when you file for bankruptcy. Failing to do so would be against the law. However, many debts that are listed will be paid in order to retaincertain property.
- Bankruptcy will not prevent you from obtaining a new job, however in some cases unpaid debts, garnishments, and creditor lawsuits might. Consult with an expert attorney today to learn more about acquiring a clean financial slate.