One of the most common misconceptions about filing bankruptcy is that “I’m going to lose all my stuff.” Not only is this incorrect, in most cases the whole purpose of the bankruptcy is to “protect” your stuff. A chapter 13 bankruptcy can be used, for example, when you are behind on mortgage payments on your home or your car. The bankruptcy allows you to protect your home and car from seizure by a Creditor, while you catch up the payments in an extended, affordable, payment plan. Likewise, if you receive a notice that your pay check is about to be garnished by a Creditor, you can protect your income by filing bankruptcy to stop the garnishment.
Melissa Wimberley Larsen is a 1986 graduate of the University of Alabama in Huntsville, and graduated with honors from the Cumberland School of Law at Samford in 1992. She has extensive experience in all types of litigation both simple and complex. Ms. Larsen is a member of the National Association of Consumer Bankruptcy Attorneys and specializes in consumer bankruptcy issues.