Arizona Bankruptcy Lawyer announces a New and Weird Bankruptcy Myth in Arizona!

I was a little surprised when a smart, sophisticated guy asked me if it was true: medical bills can't be discharged in a Chapter 7 Bankruptcy anymore!

I said, no. I've always been good with snappy patter.

But he was the second person who'd asked me that in a month, and that makes a trend.

At some point, inquiring minds want to know where these things come from (yeah, it's a dangling participle; they happen, okay?)!

The older bankruptcy myths that refuse to die are that you get to keep your homestead in Arizona even if you don't make your mortgage payments if you get sick or get fired, because it's your homestead!

Well, no!

Remember, if that were true, people would just buy a house, with a huge mortgage, and then file a bankruptcy showing the house as their homestead, and keep it without paying.

And that doesn't work.

It falls under the legal doctrine of "Oh, no, you don't!"