One of the questions I get is “Am I going to lose everything or what will I lose if I file a bankruptcy? The answer to that question is “No”, but it is a “technical no”. What happens when you file bankruptcy is that you create an estate, and an “estate” is a place where your property goes. Now you don’t lose any of your property out of your home, nor does it get taken away from you, but effectively all of your property goes into this estate, and then certain property is exempt and certain property is not exempt.
I do not say any of this to confuse you but you have to understand that the bankruptcy laws are all governed by “laws” and it’s technical and you need an attorney to help you and guide you through the process. So come in and see us. Most of my clients do not lose anything in a Chapter 7 bankruptcy.
However, I have seen many clients who have used the wrong attorney or a paralegal or tried to do it on their own and they have not been informed and educated as to what they can keep, and they have lost assets.