Bankruptcy FAQs

Will I lose anything if I file for bankruptcy?

In almost all instances of filing a Chapter 7 petition you will be able to retain all of your personal belongings and assets, including your home, your car and all household goods. We will make every effort to protect all of your personal belongings and assets. If you owe more on your car than the car is worth, the bankruptcy court will not sell your car, because after sale there would be no money left over to make a distribution to your creditors.

The same goes for your home and personal property. Even if your property is worth more than what is owed on it, you can employ the Connecticut or Federal bankruptcy exemptions to protect these items.

You may be more at risk of losing property if you do not file bankruptcy. Creditors can sue you and attach your bank accounts, garnish your wages and attach and seize your property.

How can I stop threatening telephone calls and letters?

As soon as you retain our firm, you will be able to provide our name to any of your creditors and we will deal with them on your behalf. There will be no more credit card payments and no more harassment upon retaining our firm.

If I am married, do we both have to file bankruptcy?

If all or most of the debts are in one name only, your spouse may not have to file. Creditors cannot pursue your spouse unless they have signed as a guarantor on the account. Additionally, the bankruptcy should not be reflected on the non-filing spouse’s credit report.

In most instances it is best to file a joint bankruptcy to clean up all of your debts and the fees are the same for a married couple as for a single person.

Will everyone know that I have filed bankruptcy?

The only people that receive notice of the bankruptcy are your creditors, the bankruptcy court and the IRS. Generally, filing bankruptcy is a relatively private matter. However, your bankruptcy is public record, so anyone who wishes to investigate the matter could discover that you had filed.

Will I be able to keep or obtain an apartment if I file bankruptcy?

There were over 1.5 million bankruptcies filed in the United States last year. If you are presently renting an apartment, usually your present landlord will renew your lease without running an updated credit report In fact, once you have erased all of your outstanding debt, you may appear to be a better risk than other applicants with bad credit.

Is filing bankruptcy right for me?

Are you being sued in Court?

If you are being sued or are about to be sued, we strongly suggest that you give us a call and discuss the details of your situation. There is no charge for a telephone call or an initial consultation. Federal law stops all collection efforts by your creditors upon the filing of your bankruptcy petition. It will also terminate a wage garnishment and at the very least temporarily stop a home foreclosure action for a few months.

Is your home subject to a foreclosure lawsuit?

Filing a bankruptcy petition may prevent the foreclosure action from proceeding and allow you time to catch up on your mortgage payments since you will not be required to pay on your credit card and other unsecured debts.

Credit Card Debt?

If you are only able to pay minimum payments on credit card bills with interest at about 20% it will take about 25 years to pay off a $10,000 debt! Chapter 7 bankruptcy can provide you with a fresh start that you are entitled to under the law and get you out of debt within six weeks.

Does filing bankruptcy make me a bad person or a failure?

Events occur in people’s lives that cannot be expected. Job loss, medical bills,, permanent or long term injury, or any other type of financial setback can surprise anyone. Our clients are good people who have encountered unfortunate circumstances. They want to start over on a clean slate. We know that filing bankruptcy is the last thing you want to do but sometimes it is the only practical choice.It is a hard decision but we can help you make the right decision for you.

We will counsel you as to other alternatives to filing bankruptcy and you can decide if those alternatives are right for you.

Where do I find a bankruptcy attorney?

We have been representing Chapter 7 bankruptcy petitioners for over 30 years. We will advise you of the legal fees and expenses at our first conversation.

Many attorneys charge fees of $3,500 or more for a straight-forward Chapter 7 bankruptcy. We charge less unless your situation is more complex or you are on the borderline of qualification to file a Chapter 7 petition.We offer a reasonable payment plan and remember once you have decided to file a Chapter 7 petition you can stop paying many of your unsecured bills and use the savings to pay for the bankruptcy petition.

What kinds of debts cannot be erased in bankruptcy?

Most student loans, taxes owed to your town, state or the United States of America are generally not dischargeable in bankruptcy. Tax debts are generally subject to discharge only if you file bankruptcy more than three years after you file a timely, truthful tax return. If your return is filed late, the taxes are generally discharged only if you file bankruptcy more than two years after filing a truthful tax return.

What happens to my credit?

Filing eliminates most, if not all of your unsecured debts, reducing your debt and enhancing your ability to pay. Since you can only file bankruptcy once every 8 years you may even find yourself the recipient of dozens of offers for new credit card accounts Be wary of taking on too much new credit card debt which may have been the source of your financial difficulties in the first place. Learn from any previous financial miscues.

MICHELLE STANISH

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