As a bankruptcy lawyer in Sacramento, I hear all kinds of misinformation about bankruptcy. Here are the top five myths about bankruptcy that I hear on a regular basis.
Myth 1. I can’t keep my car when I file bankruptcy
It is extremely rare for a person to lose their car during the bankruptcy process. In a typical bankruptcy, the bankruptcy filer doesn’t lose any of their property, much less their car. In most cases, your car is protected from being taken by the bankruptcy trustee. If you are worried about losing your car when you file for bankruptcy, you should discuss your situation with a qualified bankruptcy attorney.
Myth 2. My wage garnishment won’t stop until the end of my bankruptcy
When a person declares bankruptcy, all collection activity has to stop immediately! This includes wage garnishments and bank levies. A garnishment must cease immediately upon the filing of the bankruptcy case. You don’t have to wait until your bankruptcy discharge (at the end of the bankruptcy) to get relief from garnishments. This is why it is important to file your bankruptcy case as soon as you know that a garnishment is about to hit your paycheck. The sooner you file, the better chance you will have at keeping all of your wages to yourself.
Myth 3. The judge is going to criticize the reasons why I got into bankruptcy
This is completely untrue! For the most part, nobody cares why you are in need of bankruptcy assistance. Bankruptcy filers are there for numerous reasons, including job loss, medical issues, gambling, tax problems, or just making poor financial decisions. The important part is that you “play by the rules” in the bankruptcy court by following the requirements of the bankruptcy code.
Myth 4. Bankruptcy is too expensive for me
My law firm strives to make bankruptcy as affordable as possible. While each bankruptcy case is complex and requires serious work to complete successfully, we are able to provide real value to our clients. Lastly, the cost of not filing for bankruptcy is the real problem. If you’re endlessly paying high interest credit cards, payday loans, having money garnished from your wages, or are facing lawsuits, you should seriously consider whether bankruptcy is a better alternative than doing nothing.
If you have questions about declaring bankruptcy in the Sacramento area, please call my office at (916) 333-2222.