Bankruptcy can feel like a scary proposition, especially for those who have never been through the process and who have been bombarded by many bankruptcy myths. Unfortunately, many of us are afraid of appearing uninformed or ignorant so we avoid asking the questions we really need answers to. We won’t be able to answer all of the questions in this article; but below are a few answers to at least some of the questions many debtors have about bankruptcy.
- Will I lose all of my personal belongings? The short answer is no. When people think of bankruptcy, they often imagine official looking men marching into their home and seizing their electronics, jewelry and other valuables, but this is not how it works. Bankruptcy offers many generous exemptions that in most bankruptcy cases will protect the personal belongings of the average debtor. Debtors like Teresa Giudice lose personal belongings in bankruptcy because those items are luxury items and collectively exceed the bankruptcy exemptions allowed. The average debtor making an average living will not need to worry about this.
- Will I lose my job because I filed for bankruptcy? Once again, no. Federal law prohibits private and public employers from firing an employee simply because they filed bankruptcy. And besides, most employers understand that we are all facing extraordinary financial challenges during this recession, so you may be surprised at the amount of empathy you receive.
- Can I keep my friends and family out of the bankruptcy? No, all creditors and debts must be included in your bankruptcy filing. Failure to include all of your debts and creditors in your bankruptcy filing could result in the dismissal of your case.
Have a bankruptcy question that you’re afraid to ask? Contact a Dallas-Fort Worth bankruptcy attorney to find out how bankruptcy can work for you.