In these tough economic times, bankruptcy seems to be a more viable option than ever for some people.

The problem is that most people do not actually understand what bankruptcy is, and do not know when the proper time is to declare. They often panic at the first sign of financial trouble, which can cause unnecessary problems to arise.

Very few lawyers focus their practice on bankruptcy, but Louis J. Esbin of Santa Clarita happens to be one of them. He specializes in bankruptcy law, business law and consumer protection.

Practicing in Santa Clarita since 1993, Esbin has become an important figure during times of economic difficulty. 

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Esbin represents a variety of both individual and corporate clients. He understands the difficulty that people go through in these situations, so he treats each client with the utmost respect and sympathy.

Lou Esbin recently did an interview on KHTS AM 1220 where he discussed the “10 Myths of Bankruptcy” on a special one hour program.

“People get misconceptions about bankruptcy from looking at the internet,” he said.

Too often people will read something online about the proper time to declare bankruptcy without actually understanding the process. Rushing such an important decision often times creates more problems than it solves.

One of the first myths he discussed was that a person will lose their home, car, or personal items if they declare bankruptcy. He stated that as long as the person continues to pay for those items, they will not be taken away. Furniture and clothing are also protected typically, but items of value are the ones that are typically taken.

A second common myth is that a person will not have credit for 10 years after declaring bankruptcy. Esbin said that while bankruptcy “remains on credit for 10 years, people can get free credit reports once a year to keep them up to date and see what they need to do to improve their situation.”

Some people are under the impression that creditors can arrest them for failing to make payments. This is actually not true, since this practice was outlawed centuries ago.

“This has not been enforced since the Constitution was enacted,” said Esbin.

For a married couple or domestic partnership, it is actually a myth that both must file for bankruptcy. They can file jointly, separately, or have only one member of the relationship file.

One other and possibly the most important myth that Esbin touched upon was that many people feel they are the only one filing for bankruptcy. As it turns out, this could not be further from the truth. People are in various levels of debt, so no two cases are exactly the same, but the situations are similar. 

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Esbin emphasized that “you are not alone” in the bankruptcy process, so pride should not be a factor that gets in the way.

For anyone who is having financial troubles and is unsure if declaring bankruptcy is the proper course of action, Louis J. Esbin has the experience and compassion to help you make the right choice. 

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