Bankruptcy Myths & Common Questions - Rubinstein Law Firm Cleveland, OH

Common Questions

Can I file a Chapter 7 Bankruptcy more than once?
The truth is that you can only receive a bankruptcy discharge in a Chapter 7 bankruptcy once every eight years. You can file a Chapter 13 more often than that. Thus, you still have many bankruptcy options available to you even if you do not think you qualify for a Chapter 7 bankruptcy. This is why Rubinstein Law Firm offers you a no-obligation initial consultation to discuss your options.

I am being threatened to be put in jail for non-payment of debts. What should I do?
Don‘t believe them or allow them to frighten you. Fortunately, we know how to stop harassing bill collectors once and for all. Not only do we stop them, but we can issue them which results in the possibly to recover money damages for you under numerous state and federal laws when they go too far – which actually happens more than often you think. We provide you with the tools needed to document such illegal actions and show you exactly what is needed to successfully take control of the situation and reverse the tables: you can go after them for money.

Will the debt collectors stop harassing me if I file for bankruptcy?
The fact is that debtor collectors in Ohio are allowed to call and write you in connection to debts owed in most cases. However, what the law also says is that any collection agency has to stop contacting you once it knows you have a lawyer representing you in connection with your debts. Moreover, we will be there to pursue actions against them on your behalf if they violate the numerous laws that restrict their ability to harass you and impact your life. Once we actually file your bankruptcy case, federal law prohibits any contact from debt collectors.

Do not believe most things the creditors tell you. Collection agencies are masters at stretching the truth and telling half lies in order to try and collect from you. Sometimes they say that their particular debt cannot be discharged in bankruptcy. Sometimes they state that if you only make this one payment, they will stop calling you. This is almost always not true.

I am getting calls from Collection Agencies even after filing for bankruptcy. What should I do?
When you file for bankruptcy, there is an injunction that goes into effect automatically upon the filing of a bankruptcy case. It strictly prohibits the commencement or continuation of any acts to collect on a debt that arose prior to filing the bankruptcy. Think of the automatic stay as a court ordered time out against your creditors. This includes enforcement of judgments, creating or perfecting liens, and many other actions under Ohio Law. (It does not apply to collecting alimony maintenance and support). If any creditor violates this Bankruptcy Court Ordered, they could be held in contempt and then your creditors could be liable to pay you sanctions. This is why Rubinstein Law Firm offers you a no-obligation initial consultation to discuss your options.

What is Order of Garnishment or Wage Garnishment?
A garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party (the garnishee) to pay money. Once served with an Order of garnishment, your employer or bank is required by law to turnover part of your wages and/or account to the creditor. The only way to stop the garnishment is to pay off the debt or to file bankruptcy.

Can my employer fire me if I file for bankruptcy?
No. While an employer can usually find some reason to fire anyone, they cannot use bankruptcy as a basis for doing so. This is set forth in Section 525 of the Bankruptcy Code.

Can I stop my wage garnishments by filing for bankruptcy?
Filing a bankruptcy case can stop wage garnishments immediately and no future garnishments can occur from that point forward!

Do I need to consult a bankruptcy lawyer in Ohio or any bankruptcy lawyer?

Bankruptcy was always very complex and has become even more so since the major changes enacted by Congress in 2005. Many general practitioners have left this area of law. PLEASE do not try to do this on your own or go to your family lawyer who rarely does this work. Federal bankruptcy law is different than Ohio state law, some of the things are specific to Ohio laws and to your particular situation. You should always consult with a local bankruptcy lawyer Cleveland on any specific questions.

Can I erase all my debts by filing for Bankruptcy?
No. There are certain types of debts that cannot be erased. They include child support and alimony, student loans and debts incurred as the result of fraud. If you’ve defrauded someone and a judgment has been made against you, that won’t be erased either. Rubinstein Law Firm can advise you on all possible scenarios before you file for bankruptcy in the U.S. Bankruptcy Court in the Northern District of Ohio.

Should I file for bankruptcy together with my spouse?
It is not uncommon for one spouse to have a significant amount of debt in their name only. However, if spouses have debts they want to discharge that they are both liable for, they should usually file for bankruptcy protection together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who did not file.

You hire a lawyer for a reason. Rubinstein Law Firm does all the work for you and will discuss all of the options available to you. We provide the best representation possible to all of our clients. Although our office is located in Independence, Ohio, we service counties all over Northern Ohio such as Cuyahoga, Summit, and Geauga, Lake and many others.

When is the best time to file for bankruptcy?
Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job, a serious illness, or a severe decline in the Ohio real estate market. We have had clients who made more than $100,000 a year here in Ohio and have many that are currently unemployed. There are a variety of circumstances that lead individuals to seek bankruptcy relief. Mona Rubinstein strongly believes that all individuals are entitled to a second chance. Additionally, the bankruptcy option is a legal remedy that allows you debt relief under the United States Bankruptcy Code.

Can I pay some creditors after a bankruptcy when my circumstances improve?
When you file for bankruptcy here in Ohio, you are no longer obligated to repay them, but you always have that opportunity. If your conscience will not let you sleep at night because you did not pay your debts, there is nothing in the Bankruptcy Code or Ohio law that prevents you from doing that once you are back on your feet. But bankruptcy is an all-or-nothing deal, so you have to include all your creditors in the petition.

Are taxes discharged in bankruptcy?
Generally speaking, taxes must be paid. However, many times taxes older than 3 years can be discharged. Please give Rubinstein Law Firm a call and we can discuss all your Ohio bankruptcy options.

Are debts completely eliminated by filing for bankruptcy?
What happens in bankruptcy (assuming you are successful) is that your legal obligation to pay on your debt will be discharged. Debts are never technically eliminated. They still exist after a bankruptcy, but you no longer have the legal obligation to pay on the ones that are discharged.


Contact Mona Rubinstein for your
consultation at 216-539-2565 

Serving Northern Ohio including Cleveland,
Akron, Canton, Youngstown and Toledo.