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Should I File For Bankruptcy?

A question many people have is, “Should I file for bankruptcy?” This is a very important question I must answer on a daily basis. I am a bankruptcy attorney so I want to tell these clients, “Yes”. However, filing for bankruptcy is in many cases the wrong thing to do. For example, you must know that before you file for bankruptcy, you can only keep assets such as cars, motorcycles, boats, homes, motor homes and other property if the value of these items fits within the statutory bankruptcy exemption scheme. Bankruptcy exemptions are the laws that allow a person filing for bankruptcy the right to retain their property. Bankruptcy exemptions vary from state to state and can be a very simple or a very difficult issue.

Many times I must advise clients if they filed for bankruptcy now they would lose some of their property. This is why it is so important to seek competent advice from an experienced bankruptcy attorney BEFORE filing for bankruptcy. Many people think they will blindly file for bankruptcy and if it turns out they may lose their property they will simply dismiss their bankruptcy case. Once you file a case it becomes almost impossible to get it dismissed once the court knows you own unexempt property. (e.g., property the court can take from you).

Most people who file for bankruptcy do not lose any property. It is my job as a bankruptcy attorney to advise you as to what will be the probable outcome. Have any of my clients lost any of their property to the court? The answer is, “Yes”. However, this only happens after a thorough discussion with the clients about what they may lose and what they will gain by filing bankruptcy. If you are one of the people who is lucky enough to have property with a value that exceeds the statutory bankruptcy exemptions, then you may be forced to consider giving up an asset so you can achieve your goal of discharging or erasing all of your debt.

Once again, it is very important for the average person to know that most people do not lose ANY of their hard-earned property. In other words, most people who file for bankruptcy keep all the good and erase all the bad. With this being said, it is all too important for anyone considering bankruptcy to sit down with an attorney experienced in bankruptcy to discuss not only the positive side of filing for bankruptcy but also any potential negative aspects of bankruptcy.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.