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Bankruptcy Myths

The Truth About Bankruptcy

Bankruptcy Lawyers in Los Angeles Dispel Myths

Many people do not understand bankruptcy. For an individual, it is not complicated or costly. It is a legal process that enables a person to get out from under an unbearable debt burden and take control of their finances. The good news is, our Los Angeles bankruptcy attorneys can help you separate fact from fiction.

Myth #1: Because the bankruptcy laws have changed, filing for bankruptcy is no longer an option.

Not true. Bankruptcy is still available for most people. While the laws have changed, complete debt relief under Chapter 7 is still possible for many people. If you don’t qualify for Chapter 7, you may still be able to reduce or remove your debts under Chapter 13.

Myth #2: If I file for bankruptcy, I will lose everything I have.

Not true. In most cases, you can keep your house, your car, and most or all of your personal possessions. Filing bankruptcy can protect those assets while reducing or removing your debts from your shoulders. RHM LAW LLP can help you keep your home or car.

Myth #3: After I file for bankruptcy, I will never be able to get credit again.

Not true. You can get credit. In fact, filing bankruptcy is the first step toward rebuilding your credit rating. In as little as 20 months from the time your debts are discharged, your credit rating can improve.

Myth #4: Bankruptcy is an expensive and complicated process.

Not true. RHM LAW LLP makes filing bankruptcy easy. For a simple and convenient flat fee, we can file all necessary papers, and immediately stop foreclosure, repossession, and creditor harassment. Our bankruptcy attorneys in Los Angeles will take care of everything and keep you informed throughout the process. In less than an hour, we can gather the information we need to help you take control of your financial future.

Myth #5: I have huge unpaid tax bills and I’ll never get out from underneath them.

Not true. Tax debt relief is possible with bankruptcy. In many cases, RHM LAW LLP can negotiate with the IRS and California Franchise Tax Board to reduce the taxes you owe, and obtain an extended payment plan on the remainder. This can greatly reduce the taxes you owe, and give you the breathing room you need to make a financial recovery.

Myth #6: Filing for bankruptcy puts you at the mercy of creditors.

Not true. Bankruptcy can actually increase your options by reducing or eliminating unsecured debts and allowing you to take control and begin making orderly payments on your remaining debt. In some cases, you can actually choose which debts are discharged.

If you have more questions, an attorney at RHM LAW LLP can answer them in a free, no-obligation consultation. Our firm serves clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.

To schedule a free initial consultation with a bankruptcy lawyer at RHM LAW LLP, call (213) 344-0043 or contact us online. 

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Meet Our Los Angeles Bankruptcy Specialists

Client Reviews

What Clients Say About Working With Us
    "As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others."
    This is to thank you for the exceptional work of you and your fine staff. In managing my bankruptcy and loan modification, a nearly five-year effort, your performance was stellar. I never felt alone or adrift, key concerns in those circumstances. The outcome was outstanding. As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others. Without hyperbole, I can attest that you are present a beacon. Thank you so much.
    - K.C.
    "Matt and his staff conducted themselves with professionalism throughout the whole ordeal."
    I worked with Matt and his team for about a year to get through the paperwork shuffle and my personal experience was nothing short of fantastic. Legal situations have a tendency to get hairy, but Matt and his staff conducted themselves with professionalism throughout the whole ordeal. To keep it short, let's just say he under-promised and over-delivered.  Rarely would I ever say this about an attorney, but overall he was just a great guy. I would not hesitate to have him on my side of the courtroom again. World market is right across the street from his office and I even decided to get his staff a thank you / holiday gift card.  World market has excellent craft beer BTW, try the Einstock White Ale. They also validate parking. That just shows this isn't a fake review.
    - Dean C.
    "We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service."

    Dear Mr. Resnik: We wanted to thank you for your professional handling of our loan modification with GMAC mortgage. We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service.

    - W and B Mejia
    "I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home."
    I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I quickly found out that they are foreclosure specialists and they could help me with my issue. They made the process very easy for me and laid out my options for me. I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home. They are the best bankruptcy law firm in Sherman Oaks.
    - Joseph R.
    "They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life."
    Matt and his team are the best!!  They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I never felt judged or looked down on. They were efficient and really were lifesavers during this tough time. I can not recommend them highly enough!!!!
    - Rusty H.
    "He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults."
    Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's needed. He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults. Affordable and Outstanding firm and thank you for all you have done! My family thanks you!
    - David K.
    "He made me feel like I had options, all was not lost, and I could rebuild my credit."
    Matt is the best bankruptcy attorney in Sherman Oaks. I consulted with Matt over a chapter 7 bankruptcy. I had issues with overwhelming credit card debt after Chase increased it's APR for no reason. It set off a chain of events that were really hurting me. He made me feel like I had options, all was not lost, and I could rebuild my credit after the 7. I had some concerns about a piece of property I was having issues with and Matt also turned out to be a real estate lawyer as well! I recommend this office to anyone who is unsure of their financial situation. It doesn't hurt to find out your options.
    - Max B.
    "These are top-notch pros that'll have your back. I cannot recommend them highly enough."
    Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't know what to do. I met with a few lawyers but when I met with Simon he broke things down and gave me my options. I needed a car - so I filed BK and included the car to get it back. The evil credit union fought and Simon GOT ME MY CAR BACK!!! His team is amazing!!!! Maria Donna etc!!! These are top-notch pros that'll have your back. I cannot recommend them highly enough. Sincerely they saved my life. LA with no car!? ARGH!!!!!! *THANX ALL!!!!
    - Tim C.
    "Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding."

    Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.

    - Skip K.

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