Bankruptcy Myths Revealed
Let our Chapter 7 and Chapter 13 top bankruptcy experts advise you on filing in Connecticut (CT). We have found that irrational fears hold people back from filing bankruptcy in this state even though it may be the best way to get a fresh start. We hope that by dispelling some of these widely held bankruptcy myths, our expert advice can help you decide if filing for bankruptcy protection is right for you. Come talk to our staff lawyers – there is NO CHARGE for an initial meeting.
Bankruptcy is difficult.
Wrong. If you have a competent lawyer representing you, the process should be straight-forward for most non-business debtors.
If I file, I will lose all my property.
Wrong. Most people who file for bankruptcy protection do not lose any property at all.
If I file, I will never get credit again.
Wrong. In many cases, clients report having an easier time obtaining credit after bankruptcy, because they have significantly improved their debt to income ratio.
If I file, I will lose my Pension, IRA, or 401(k).
Wrong. You will almost certainly keep your pension, IRA, and 401(k) in bankruptcy.
If I file, I will lose my job.
Wrong. Employers are not allowed to fire someone (or take other adverse action) for filing bankruptcy.
My bankruptcy will hurt my spouse’s credit.
Wrong. If your spouse chooses not to file with you, your filing will not affect his/her credit.
Bankruptcy will prevent my paying debts I want to pay.
Wrong. Nobody will stop you from paying a debt you wish to pay. After your discharge, you may still voluntarily pay any debt you want to pay, regardless of whether or not it was discharged.
Only deadbeats file bankruptcy.
Wrong. Many people are forced into bankruptcy because of medical debt, loss of a job, divorce, or similar circumstances beyond their control. The laws are intended to help good people get a fresh start.
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