Bankruptcy

Busting Bankruptcy Myths One Client at a Time

One of the greatest satisfactions as an attorney is seeing a client get the bankruptcy that they deserve instead of being stuck with whatever the trustee hands them. At Van Horn Law Group, we are all in for our clients being able to walk away from their fairly resolved debts and into a new life without the stress and anxiety. One of our clients who recently had their bankruptcy discharged wrote to us and busted some big bankruptcy myths that they themselves had feared.  We will bust bankruptcy myths as we go through the thank-you note.

Bankruptcy Myth #1: When you file for bankruptcy, you lose everything!

“As my case was officially closed yesterday, I wanted to send a very sincere thank you to everyone for getting this accomplished! It was extremely stressful for the last 8 months, but I really appreciate the services and advice I received from your team especially towards the end by not giving in to the pressure of the trustee, which allowed me to go back to a No-Asset case.”

BUSTED! When you have a no-asset Chapter 7 bankruptcy, it doesn’t mean that you’re panhandling on an off-ramp, it means that your property exemptions create protected classes of assets that your creditors can’t touch. This includes an unlimited homestead exemption that protects the equity you have in your home provided you have owned it for longer than 1,215 days, the property is half an acre or less in a city, or less than 160 acres outside of city limits. There are also exemptions for personal property, another $4,000 added to that if using the homestead exemption, vehicle equity, and savings vehicles such as college and HSA accounts, retirement accounts, pensions, and support such as child support, disability payments, and Social Security. You may even be able to keep your vehicle with a 722 redemption.

Bankruptcy Myth #2: Your credit will be ruined!

“My credit score is already rebounding, I was concerned of the impact a bankruptcy would have on my life, but I qualified for a new apartment in November, passed a background check for a new job in October, and I just need to pay a few thousand to my auto loan lender to get the title (thankfully we didn’t reaffirm the debt because now I can make any payment amount I want, they won’t hold the title for the other debts I owed, and won’t repo as long as I show I’m attempting to get the title).

BUSTED! No, actually, it might even improve! Without those debts hanging over your head, late payments, and the steady squeeze on your disposable income, you might be more credit-worthy after bankruptcy than you were prior to filing. Once the automatic stay goes into effect, you do lose your credit cards – but all collections stop there and then, freeing up your income to do things like buy food, pay your rent or mortgage, and pick up your prescriptions.

Bankruptcy Myth #3: You’ll be worse off after bankruptcy than before!

“Now I just need Bernie Sanders or Elizabeth Warren to forgive my student loan debt and I’ll finally have a positive net worth for the first time in 10 years! Regardless, I now have a new lease on life where I actually have a chance to live a decent life, not drowning in debt, and no longer stressing every minute of every day planning my weekly payments years ahead of time.”

BUSTED! If by worse off you mean able to afford the necessities of life without worrying about striving and scraping to make minimum payments, worrying about not having enough cash for emergencies or needed dental or medical care – sure. Recovery is faster than most people think, and within weeks of exiting bankruptcy, you can be assured that your life is back on track. Your wages are back in your pocket, your property is secure, and you can sleep at night – that’s much better off.

Bankruptcy Myth #4: All bankruptcy lawyers are the same!

“I know that other lawyers would have turned me away, forced me into Chapter 13, or messed up my case with the house, post-nuptial, income, or would’ve had me pay thousands to the trustee to settle, so I’m extremely grateful for all of you and for the final result that you were able to accomplish. I wish you all the best and will certainly refer anyone I know of that is struggling in the future.”

BUSTED! The US Trustee’s job is to secure the best settlement for your creditors that is possible under the law. Our job at Van Horn Law Group is to make sure that you are protected under the letter and spirit of the law and are discharged from bankruptcy court able to start a new life. The right to file for bankruptcy as an individual has been upheld by the Supreme Court since 1898. Of course, many people use bankruptcy preparers or attempt to file as pro se, but when you get right down to it only a lawyer can offer you the legal advice and backup that you need.

At Van Horn Law Group, we undertake a bankruptcy, we understand that our clients have been through a traumatic experience and may have even tried everything they could to avoid filing for bankruptcy. We are here to walk you through and get you the best result we can with our experience and advocacy. We work to get you the best discharge of your debts whether you are filing for a Chapter 7 or Chapter 13.

Your first consultation is always free, so get in touch with us and find out how we can get the burden of debt off your shoulders.

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Busting Bankruptcy Myths One Client at a Time
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One of our clients who recently had their bankruptcy discharged wrote to us and busted some big bankruptcy myths that they themselves had feared. 
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Chad Van Horn
Van Horn Law Group
Van Horn Law Group
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Chad Van Horn

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