Several years ago, another bankruptcy lawyer told me that our job as bankruptcy lawyers is to have our clients tell us about the "Dairy Queen Law". that they know. "Dairy Queen Law" refers to all bankruptcy laws that clients have learned at the local "Dairy Queen" from friends, family members, waitresses and other clients. We must compel our clients to tell us what "Dairy Queen Law" they have learned, and then we, as lawyers, must tell them the truth about bankruptcy. Well here are some "Dairy Queen laws" followed by the truth.
Your employer and the local newspaper will be informed that you have declared bankruptcy.
When you file a complaint under Chapter 7, the employer is not informed of bankruptcy. If you choose to file a case under Chapter 13, you ask your employer to seize your salary to pay your creditors under a plan approved under Chapter 13 and approved by the courts. Your employer is informed of bankruptcy because you are asking for your wages to be seized. This is one of the many reasons why our firm is now trying to classify as many cases as our cases in Chapter 7.
Our local newspapers do not publish those who filed for bankruptcy (unless it is Donald Trump, American Airlines, Walt Disney or people or businesses famous). During my 30 years of bankruptcy, the only bankruptcy case that made the local newspaper was the Chapter 7 case that I filed for a local micro-brewery. The article was much more about the brewery than filing for bankruptcy.
You have to be very poor to go bankrupt
The 2005 amendments to the US Bankruptcy Code made the forms necessary to file a bankruptcy record very difficult. However, we are filing complaints for very poor people and other "not so poor" people who are in financial difficulty. We offer a free consultation and can help you find a solution to your debt problems. Most of our clients think they are very anxious when they first visit our offices and leave feeling confident that they have found a solution to their financial problems.
Your credit will be ruined forever
False! Most clients who come to our office have serious financial problems and the bankruptcy eliminates these debts and allows them to make a fresh start. Most of our Chapter 7 clients are funding recent models while their bankruptcy files are pending. Working to restore credit after the discharge will allow clients to finance housing from two years after the bankruptcy is released. Bankruptcy is a solution to a financial problem. It usually significantly improves the credit and financial problems of our customers.
New laws make bankruptcy impossible
In 2005, the US Congress profoundly changed our bankruptcy laws. Unfortunately, these laws have the effect of making it more expensive to file a bankruptcy file for consumer debtors. The forms that must now be filed when a bankruptcy case is filed are very complicated. In fact, I teach continuing legal education courses to lawyers and paralegals so that they properly prepare the forms in order to get the best possible result for their clients. It is very important that you hire a highly experienced and knowledgeable bankruptcy lawyer to represent you in this very complex area of law. Millions of Americans have declared bankruptcy before the law is changed and millions of others now file that new laws have come into force.