Here is a list of Frequently Asked Questions on filing bankruptcy in Connecticut:
Does my husband/ wife HAVE to file if I decide to file? NO.
It’s not uncommon for one spouse to have a significant amount of debt in their name only. In those cases, it makes perfect sense for one spouse to file and for the other not to do so.
Will my Immigration Status Be Affected By Bankruptcy? NO.
Many people worry that they will jeopardize their immigration status if they file for bankruptcy. This is incorrect. Your immigration status is not affected in any way by filing for bankruptcy.
Do I need to be completely broke to file bankruptcy? NO.
You can be employed, have some money in the bank and own personal property and a house in many cases. Bankruptcy is intended to give you a fresh start, but you don’t have to be at rock bottom to take advantage of its benefits.
Will I lose my car? NO.
Most people keep their cars and most, or all, of their other property as well. The specific answer depends on the value of what you own but your attorney will be able to answer those questions for you easily.
What will a bankruptcy cost?
The Beckett Law firm does not have a “one size fits all” philosophy. We will charge you a fair price based on the time we believe we will spend on your case in order to bring it to a successful completion. During the initial consult, the attorney will explore any unusual issues or complexities which may impact the fee. However, our fees are competitive with area firms.
Someone with one or more small businesses will probably pay more than someone who works at a regular job and has a personal residence. Someone with a personal residence will probably pay more than someone who does not own a home and rents. An older person, whose sole income is social security, may pay a very low fee for a bankruptcy filing. Every client’s situation is unique and we charge our fees accordingly.
Will you bill me for phone calls? NO.
All of our bankruptcy fees are flat rates. We will never bill you for phone calls or postage or any of the other annoying little expenses.
Can you give me an approximate range? Yes
A “typical” or “average” Chapter 7 case will probably cost somewhere between $1,500-$2,800. A chapter 13 bankruptcy is likely to be between $3,000 – $5,000, and a Chapter 11 bankruptcy may be $20,000 or $30,000 or more. However, these are extremely rough estimates and the only way to know for sure is to come in and meet with us.
What are my other options?
Debt Settlement is probably the most common alternative, but be careful of the tax implications. Settlement involves negotiating with your creditors so you pay them less than the actual amount due. This may be done on your own or through one of the many agencies that proliferate online.
Does Debt Settlement Work?
Well, of course it does work for some people. However, in our experience, it is usually tried for a short time and then most often people come in to file bankruptcy after all. In 2005, a report issued by the National Consumer Law Center entitled An Investigation of Debt Settlement Companies: An Unsettling Business for Consumers found that very few consumers complete these program.
I don’t have any credit cards but I’m behind on my mortgage. What can I do?
This is a classic reason to file Chapter 13, which will let you catch up and pay the past due amount over as long as 5 years (in 60 equal installments). Other options may be a Special Forbearance where your lender provides for a temporary reduction or suspension of your payments, a Mortgage Modification can be used to roll the past due amount into the loan and extend the term to give you longer to pay.
I don’t want to keep my house, but it’s been on the market for a year.
If you don’t want to keep the house, then you may want to explore a Short Sale where the bank takes less than the full amount due, and let’s you off the hook for the shortfall, or a Deed-In-Lieu Of Foreclosure which is when you essentially just “give back” the house to the bank and they waive the balance on your mortgage. You could end up with a 1099C, though, so proceed cautiously and consult with an attorney before committing to either of these scenarios.
What will be discharged in a standard Chapter 7 filing?
A successful Chapter 7 bankruptcy wipes debt from:
• Personal loans
• Credit tax debts
• Parking tickets
• Checking account overdrafts
• Medical and dental bills
• Social Security and unemployment overpayments
What debts will I still have to pay after my bankruptcy?
Debts that are not wiped out include:
• Debts obtained through fraud or deception
• Most student loans
• Most Court-ordered fines and criminal restitution
• Debts for personal injuries caused by driving while intoxicated or taking drugs
Have any famous people filed bankruptcy that I would recognize?? Absolutely.
Some very well known and well respected people have filed bankruptcy – like you, they just needed a fresh start. Most did quite well afterwards.
President Abraham Lincoln
Author Mark Twain
Automobile Manufacturer Henry Ford
Hall of Fame quarterback Johnny Unitas
Hollywood director Francis Ford Coppola
Television personality Larry King
Actor Mickey Rooney
Actor Burt Reynolds
Actress Kim Basinger
Entertainer Jerry Lee Lewis
Entertainer Wayne Newton
Entertainer M.C. Hammer
Entertainer Toni Braxton
US Airways (twice)
Please schedule a FREE OFFICE CONSULTATION using the contact form or phone number seen throughout this website.
Every Connecticut bankruptcy case is unique. If the frequently asked questions on Connecticut bankruptcy shown above have not answered your specific questions, please contact us via the form at the right. Let us help you decide if filing bankruptcy in Connecticut is the best debt relief solution for you.