– I wanted to go over some common myths and misperceptions in bankruptcy. I get a lot of calls from clients, potential clients, about what happens with a bankruptcy. What do I lose? What types of debt can I wipe out? There are a lot of misunderstandings about bankruptcy and how it works and what you can do and can’t do. First, one of the major questions I get, am I going to lose everything if I file bankruptcy? And believe it or not, most of our clients, probably 90 to 95%, can file bankruptcy, wipe out all their debt, and keep the assets they have. So you can keep a house, you are entitled to certain exemptions, depending on the amount of the mortgage and the value of your house, you may save your house. There’s a car exemption, there’s a cash exemption for money you have in the bank, there’s exemptions under the federal bankruptcy laws for just about every category of asset that you can think of. There’s limits to the amounts, but as I said, 90 to 95% of our clients can keep those assets they have and wipe out all of their debts. Another misunderstanding is that you’ll lose your retirement accounts. Now, retirement accounts in bankruptcy are totally exempt. So for instance, if you have a 401k and you have $70,000 in that 401k, you will keep it, you’ll be able to wipe out your debt and keep that retirement account. Another common misperception is that you cannot wipe out IRS or state governmental debt. There are certain rules that you can wipe out that debt depending on how old it is, whether you file tax returns, but there are instances where you can wipe out tax debt arising from your income. The other misperception is that you’ll never be able to get credit ever. Most clients who have some credit damage and come into us with outstanding debts already have very damaged credit. Filing with a bankruptcy cleans out all the credit, all the bad credit, and they’ll be on a quicker road to recovery in terms of their credit if they do file the bankruptcy than if they wait. Now it depends on the situation and what your credit scores are, but the bankruptcy doesn’t mean you can’t get credit forever after the bankruptcy. There are ways we show you how to rebuild your credit, legitimately, and it is definitely not the end of credit if you do file bankruptcy. So those are some of the some common myths that I would like you to understand and dispel those myths. Please call our office if you have any questions. We’re glad to give you a free consultation to go over your situation and your concerns in terms of bankruptcy. Thank you.