On October 17, 2005 new bankruptcy laws went into effect. There was much media attention given to this new law and unfortunately a great deal of this has lead to misinformation.

What is not true about the “New” bankruptcy laws.

Many people think that bankruptcy is no longer available. This is simply not true.

Many people think that there are limits and/or minimum amounts that you must owe in order to file bankruptcy. This is not true.

Many people believe that bankruptcy is now only available to a select few. Not true.

Many people think that under the new law, in every bankruptcy you are required to pay your debts or a portion of your debts. Not true.

People believe that all bankruptcies now require a monthly debt payment. Not true.

People believe that everyone who files bankruptcy will lose their home and car. Not true.

The truth about the “New” bankruptcy law.

For the most part, bankruptcy today is not much different than it was before the “New” law went into effect. The great majority of people that filed bankruptcy before the “New” law, could still file bankruptcy today. You can still file bankruptcy and not lose your house and car.
What has changed? Mostly paperwork and other routine requirements.

You are required to talk to a credit counselor before you file bankruptcy. We will let you know which credit counselors are “approved” pre-bankruptcy credit counselors. This can be done in person, on the phone or on the internet.

You will have to give us copies of paychecks and tax returns. We will let know exactly what we need for this.

After your bankruptcy is filed you will be required to have a session of “Debtor education”. Once again, this can be done in person, on the phone or on the internet.

Yes, you must qualify to file Chapter 7 bankruptcy. Most people who are need of bankruptcy will qualify. I advise that you NOT try to see if you qualify on your own. This can be a complex step and needs to be done right. This is what we do. We have done this many times before and upon your first consultation I can give you an opinion as to your qualification.

Costello & Costello
19 North Western Avenue ( Route 31 )
Carpentersville Illinois 60110

PHONE: 847-428-4544
FAX: 847-428-4694

EMAIL US DIRECTLY - HERE!