FAQs Archive | Arnold Law Offices

Q: Myth #4: My employer and friends will be notified when I file for bankruptcy.

FALSE: Unless your wages are being garnished, we will not notify your employer about your bankruptcy. Although Wyoming bankruptcy cases are public records, it is very unlikely anyone will find out. If your employer is notified to stop a wage garnishment, the employer cannot fire you, demote you or take retaliatory action without risking a violation of the wrongful termination laws. In filing over 2,000 bankruptcy cases, the bankruptcy law firm of George L. Arnold has never witnessed an adverse impact on employment caused by a bankruptcy filing. If you are worried about people finding out that you filed for bankruptcy, remember that the bankruptcy court will not contact anyone, including your employer. Unless someone conducts a background check, it is very unlikely anyone will find out unless you tell them.

Q: Myth #2: I will lose all of my property and assets.

FALSE: If you file for Chapter 13 Bankruptcy, you will keep all of your free-and-clear property, which only infrequently will be relevant to the minimum payment amount and you will keep all of your secured property, subject to rare exceptions. If you file for Chapter 7 Bankruptcy, secured property, such as a house with a mortgage or a car with a lien, are not surrendered, unless that is what you choose to do. Some very limited kinds of free-and-clear property may have to be purchased back from the Chapter 7 trustee. Most free-and-clear property is protected from buy-back or turn over because it is “exempt.” With non-exempt, free-and-clear property, such as a firearm, the buy-back amount is usually quite modest and manageable. George L. Arnold, as a skilled Wyoming bankruptcy attorney, will review with you the extent of your non-exempt property, if any, and ways for you to lawfully keep all of your assets or reduce the amount that you must buy back.

Q: Can I keep my credit cards?

If you owe balances on credit cards, they must be included in bankruptcy and will be closed. You cannot selectively exclude creditors. However, you can apply for new credit cards after filing.

Q: Can I file bankruptcy more than once?

Yes, but there are time limits. You must wait 8 years between Chapter 7 discharges, 4 years between Chapter 7 and Chapter 13, and 2 years between Chapter 13 filings.