One of the biggest bankruptcy myths that deserve attention is this one. Many people seem to think that by filing for bankruptcy, they’ll lose everything they own and have to start from scratch. This terrifying assumption can prevent many people from seeking the safe haven they need in the bankruptcy courts.
While bankruptcy laws vary from state to state, under no circumstances will you lose everything you have, and be left homeless with no possessions. Every state has different provisions, but none of them allow for this popular bankruptcy myth to become your reality.
Typically, after you file for bankruptcy, you will still have your home, your car, clothing, household goods, and money that are secured in retirement accounts. Bankruptcy is meant to help people, not to shame them or destroy their lives. The court system, as a whole, realizes this, and doesn’t take all of your possessions when you are filing for bankruptcy.
If you cannot pay your home or car loan, then that’s a different story. You may face foreclosure or repossession – just like anyone else would – but it’s not related to bankruptcy.
If you have questions about this or other bankruptcy myths, please don’t hesitate to contact our professional staff at Lee Law Firm for financial advice and assistance. No case is too small for us to handle. When it comes to Texas bankruptcy, we are here helping good people through bad times.