MYTHS ABOUT BANKRUPTCY

Myths about Bankruptcy:

  • Filing bankruptcy will hurt your credit for 10 years. It is true that bankruptcy stays on your credit about 10 years. However, you can start rebuilding your credit once your bankruptcy is discharged.

  • Everyone will know I filed for bankruptcy. Bankruptcy is public record but unless you are famous or a large corporation, the only people who are going to know are those who you tell and those who have access to the bankruptcy court record system.

  • I am married, my spouse also has to file bankruptcy. You can file together or separately, that is your choice. But if there are any debts that you are both liable for, the creditor may just go after the non-filing spouse once the debt has been discharged by the spouse that filed.

  • I will lose all my possessions if I file for Bankruptcy. Not true. Bankruptcy allows you to keep most of your property. Please contact our experienced bankruptcy lawyer for more information on what assets you may retain.

  • All debts are wiped out in a Chapter 7 Bankruptcy. Not true. Certain types of debts cannot be discharged, or wiped out. They include child support, alimony, most student loans, some taxes, most fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution, and debts incurred as a result of fraud.

  • I can pick and choose what debts to put into bankruptcy. Absolutely not! When filing for bankruptcy you cannot pick and choose between who you want to pay back and who you don’t. You have to list all of the debts that you owe. You cannot discriminate between creditors, even if you want to keep paying them.

  • I can max out my credit cards before I file for bankruptcy. Maxing out your credit cards in anticipation of filing for bankruptcy can constitute fraud and is certainly not recommended!! The trustee in your case will review all your purchases right before your filing.

  • Creditors still can harass me if you file for bankruptcy. When the bankruptcy is filed, automatic protection is put onto you and all of your property Instantly. Creditors are not allowed to contact you for any reason, which includes calling or even billing you. If they persist in harassing you, you do have remedies available through the Federal Bankruptcy laws.

Helpful Links

Bankruptcy Forms and Checklists Download In this section, you will find our bankruptcy notices, documents checklist and questionnaire.
Quick Median Income TestQuick calculation of your average household income for the past six months.

Means Test Information

Test used to determine your eligibility to file Chapter 7 when your debts are primarily consumer debts.

Bankruptcy MythsFind out eight myths that keep people from getting debt relief in bankrutpcy.
Bankruptcy DOs and DONT's Find out common mistakes to avoid before filing bankruptcy.
Frequently Asked QuestionsHave questions? Visit our this Frequently Asked Questions Section or submit a new question.
Bankruptcy VideosAll Seymour Law Firm clients are encouraged to watch these videos.
Credit Counseling and Debtor's EducationLinks to the mandatory bankruptcy pre-petition and pre-discharge courses.
United States Bankruptcy Court Link to the Bankruptcy Court for the District of Connecticut.
Connecticut Bankruptcy Lawyers Our bankruptcy lawyers proudly serve residents of of Danbury, Bethel, Bridgeport, Brookfield, Darien, Easton, Fairfield, Greenwich, Monroe, New Canaan, New Fairfield,Newtown, Norwalk, Redding, Ridgefield, Shelton, Sherman, Stamford, Stratford, Trumbull, Weston, Westport.