We all have friends who are not hesitant to hand out advice. They may have good intentions, but it can also lead to serious problems, especially when it comes to practicing law without a license.
Bankruptcy is one area where friends can provide misinformation that can prove very damaging to your financial situation. Here are three of the biggest misconceptions people have about filing bankruptcy.
- If I file for bankruptcy, I will lose my house.
Almost never. I repeat, almost never. You are saying: Aha! He said "almost", which means there is a chance I might lose my house. My response: if there is any chance at all that you would lose your house because you file for bankruptcy, there is no chance that we will file the papers unless you have no problem with it. In over 25,000 cases that we have filed, I cannot remember anyone losing their house involuntarily.
- If I file for bankruptcy, I will lose my car.
Almost never. Aha, you say. "Almost" again. Wait, let me explain. In most situations, our clients have car payments that encumber the car and reduce the equity to little or none. Or they have old cars. Or they have cars that we are able to protect under the Bankruptcy Code. If there is a chance that you would lose your vehicle involuntarily, we will not file a bankruptcy petition for you.
- If I file a bankruptcy petition, I will lose my household items that I have worked so hard for.
Nonsense. The Bankruptcy Code is very generous in what it allows you to keep. Just be truthful when you tell us and the Court about what you have. We will work with you to determine what the items are worth. If there is any chance that you will lose anything (extremely rare), we will tell you before your papers are filed so that you have a choice.
More questions? Give us a call at Steidl and Steinberg. It's free. That way, you won't lose anything.