The bankruptcy is no different, other than once you’re divorced you only look at the income for the person filing bankruptcy. If you’re married, even if only one spouse is filing bankruptcy, you still have to use the income of the other spouse to determine if they’re eligible to file under Chapter 7. Sometimes you have to wait to file Chapter 7 until you’re divorced because then they won’t look at your spouse’s income, which means you may be below the income limit for the Chapter 7. You can file separately as a married couple.
What Are the Common Misconceptions About Bankruptcy?
People don’t realize that, even if you’re keeping your home or your car, you still have to disclose the creditor to whom you owe the money, even though you’re not going to lose that asset. Many people don’t realize that they have to list their mortgages or their car loans when they file.
Another misconception people often have is that, when they file, they will lose their house or their wages will be garnished, while the opposite is actually true; the second you file bankruptcy, all collection actions against you stop, including garnishments. No one can call you; no one can start a lawsuit against you or continue one that has already started. Bankruptcy enables you to have the time to figure out what you should do to save your home and keep your car.
How Can Someone’s Life Improve After Filing For Bankruptcy?
After a bankruptcy, most people ask me if that was that all there was to it. They are given a fresh start, with no more personal loan and credit card debt and no more medical bills; it removes a big burden from their shoulders and they can sleep at night. No one’s calling them and harassing them to pay their bills and they don’t have wage garnishments or lawsuits against them, so it really does give them a fresh start, both financially and emotionally.
What Should I Do if Creditors Keep Harassing Me After I File for Bankruptcy?
The second you file, the bankruptcy court sends a notice to all creditors, and it’s a violation of federal law for them to call you. You should notify me and I will just contact the creditor and fax or e-mail them a copy of the proof of the bankruptcy filing.
For more information on Bankruptcy Involving Divorce, a free initial consultation is your best next step. Get the information and legal answers you’re seeking by calling (203) 929-7771 today.
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