There are many myths about bankruptcy protection that are simply passed around by word of mouth outside of professional advice. Much of what you hear from friends or acquaintances may be inaccurate depending on your situation. If you have heard that people have lost their cars or have been forced into liquidating assets like homes or possessions in a bankruptcy, you may be mislead into thinking that bankruptcy will force you into losing everything you own. This is not the case. Someone that lost an asset in a bankruptcy may have voluntarily surrenderred the asset in the bankruptcy because they cold not afford to keep up with the payments. It is important to know that under bankruptcy protection, the law allows you to keep most things you need to live and exempt your personal assets out of the bankruptcy. The words ” bankruptcy protection ” purposely include the word “protection” to let you know that bankruptcy is designed to protect what you have and what you need to live as long as it is not exessive in the eyes of the bankruptcy court. Sophisticated business people have a great understanding of their rights under bankruptcy protection due to the advice of their attorneys who work for them. Donald Trump, as an example, has used bankruptcy protection multiple times in order to protect his assets and re-organize any debt that renders his business operations insolvent.
Consider Frank McCourt’s bankruptcy filing situation. When Mr. McCourt wanted to retain his team and protect his rights as an owner of the Los Angeles Dodgers, he filed for bankruptcy. Bankruptcy allowed McCourt to override the rules of Major League Baseball so McCourt could re-organize his debts from the teams operations and keep ownership of the team. As a result, McCourt was able to keep the Dodgers and MLB loaned him more money to keep operating the Dodgers without interruption. MLB was afraid that they would never see any of the money McCourt owed them as a result of the bankruptcy. So, the bankruptcy put McCourt right back into control of his situation. He recently decided to auction off the team on his own accord, but, once again, he was back in control of the situation because of a bankruptcy filing.
Learn your right in the bankruptcy courts of California. Whether you live in Orange County, San Bernardino County, Riverside County, or Los Angeles County, contact Bankruptcy Law Professionals to find out more about your rights under bankruptcy protection.
