There’s a ton of bad information out there about bankruptcy. So how do you know the information you are getting is reliable, and where do you go for answers to your questions about bankruptcy?
Here are some tips to avoid bankruptcy myths, and then some suggestions for how to get your questions answered.
I could set out a series of links to various web sites, books, articles, or even so-called experts, and tell you to avoid them, but the list would change from often, even day to day. So, I’m going to suggest some general rules that should make you skeptical about the source of any information, or that ought to make you question whether it’s a bankruptcy myth. Here goes:
1. Consider the source. Whether you have googled your question or you’re reading your local newspaper, consider the source of the bankruptcy information. Is the source a trade group, an attorney, or an “industry spokesman?” Is there a way to check the source’s credentials? Obviously, a bankruptcy attorney and a lay person are going to have different levels of knowledge, but even within a profession there are specialists. If you can’t tell, question the source. On the other hand, if other sources rely on the information, or have vetted the source, you have some assurance of its reliability.
2. Question any information that is absolute. For example, I’ve recently run across statements to the effect of “corporations can’t file Chapter 7″ (they can) and “businesses can only file Chapter 11″ (not true). I hated to even write those sentences, for fear they’ll turn up in someone’s search and they will look no further. I’m not even going to use the most common example for fear that it will perpetuate the myth. (Hint–it involves the means test and Chapter 7 filings.) There are very few absolutes in bankruptcy law, and just about any time you see a broad statement like that it is false. My friend and colleague Russ DeMott says that you can answer any question about bankruptcy with “it depends” and be correct. So question any absolutes.
3. Question anything that does not contain an in-depth analysis. I’m thinking here about the main-stream media, in large part. Pretty much any time I read a newspaper article or see a television news piece that touches on bankruptcy, I wince, because something is either over-simplified or over-complicated. The bottom line is that it is a specialized field of knowledge that resists being dumbed-down or reduced to sound bytes. Even the most diligent and well-meaning journalist can only scratch the surface.
4. Don’t get your information on the streets. In this case, “on the streets” means from your co-worker, your cousin, your Aunt Betty, or any other similar source–and that includes someone’s blog about going through bankruptcy. Even someone who has just gone through bankruptcy can only tell you what happened in their case, and every case is different. Remember, every question related to bankruptcy depends on your assets, your debts, and your budget. Just because your cousin Rob lost his house doesn’t mean that you will; nor does the fact that your brother-in-law got to keep his car mean that will be the outcome for you. Instead, seek authoritative information.
5. Lastly, just like your mother told you, if it sounds too good to be true, it probably is. Question any information or proposed solution that is offered with unrealistic guarantees (“You can’t be turned down!”) or includes phony promises (“You have the right to cut your debt!”).
So how do you get answers to your questions? I could be totally self-serving and recommend that you continue to read Bankruptcy Law Network, but since you are doing that already, I’ll move on.
The absolute best way to answer your questions about bankruptcy is to go see a bankruptcy lawyer. Of course, you want to choose someone who is experienced and who will take the time to answer your questions. But again, you probably know that, as well. Most people want at least a little preliminary information before taking that step, just so they don’t feel that they are wasting their time. Or they want to feel that they are prepared to ask intelligent questions when they do go to see an attorney.
So here are some general suggestions about where to find reliable information.
When you want bankruptcy information, there is no better source than the bankruptcy court itself. Each bankruptcy court has its own web site, and although the sophistication and information on each of them may vary, it’s a good place to start. And it’s a good bet you won’t find any bankruptcy myths there, either.
Similarly, the Administrative Office of the United States Courts offers a series of very informative videos that describe the process of filing bankruptcy from start to finish. It’s not a substitute for legal advice directed to your particular situation, but it’s a starting point.
Many of those seeking bankruptcy information believe that they can’t afford an attorney, and need to do a bankruptcy without one. There are two problems with that approach. First, it may not be true. I’ve seen many people who are surprised that my fee quote was lower than the fee they had already paid to someone else to avoid bankruptcy, or file without an attorney. Secondly, it nearly always turns out badly. Even the worldwide web, with all it’s wonders, is no substitute for a lawyer of your very own.
I’m a firm believer in research; nothing gives me greater reassurance than doing my own research, or if necessary, relying on someone else who does. And I generally feel a great deal of confidence in being able to weed through and pick apart sources of information, discarding questionable or clearly unreliable sources, and relying on solid information.
But, there are some fields of inquiry that are so arcane, or require such specialized knowledge (think Egytion hieroglyphics, or particle physics) that I lack a basis upon which to make that judgment. Bankruptcy is like that for many, which makes it fertile ground for the ill-educated, those with an axe to grind, or just malicious misinformation.
Pick your sources of information carefully, but no matter how solid you think your information is, go ahead and make an appointment to consult an experienced bankruptcy attorney. You may be surprised at what you hear.
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