Counsel from a Middletown, New Haven and Hartford Lawyer
Bankruptcy can be a complicated and often confusing process. In some cases,
people may be afraid to take the next step because of the common myths
bankruptcy. Regardless of the situation you are in, it can be helpful to learn more
information about the bankruptcy process before making any financial decisions.
As a Middletown bankruptcy attorney, I am here to provide the answers
you need to move forward. Read through this frequently asked questions
below or contact me today if you don't see the answers you are looking for.
Will bankruptcy eliminate all of my debts?
While bankruptcy can be a powerful financial tool, it cannot eliminate
all debts, nor can it cure financial habits. You will need to commit to
the bankruptcy process in order to eliminate as much debt as possible
while still retain your property. Any unsecured debts will be eliminate
when you file for bankruptcy, however, secured debts will still have to
be paid off. Similarly, if you file for Chapter 13, you may have a repayment
plan, rather than a discharge of all debts.
What is the difference between Chapter 7 and Chapter 13?
In order to file for
Chapter 7, you will need to fall under the average income for your state or area.
If you pass the means test, you can then file. Chapter 7 is often called
liquidation bankruptcy, as you will liquidate your assets in order to
pay off non-dischargeable debts. You will be able to use exemptions to
protect certain property depending on your situation. Chapter 13 is slightly
different. You do not need to fall under a certain income, though you
must have a sustainable enough job to pursue this option. Why? Because
Chapter 13 utilize a repayment plan method that seeks to negotiate a plan
with all secured creditors in order to pay off debts over time. You may
still discharge certain debts and will likely be able to keep your home.
If I file for bankruptcy, will I still lose my house?
If you want to keep your home and are facing foreclosure, filing
Chapter 13 bankruptcy may be a serious option for you. When you file for bankruptcy,
an automatic stop is issued, which means your creditors and lenders can
no longer take any action against you. You will likely be able to keep
your house, so long as you can restructure your debts and begin to make
payment plans over time.
Won't bankruptcy ruin my credit?
This is a common myth that surrounds bankruptcy. While bankruptcy will
make it challenging for you to obtain a credit card right away, this is
often a good thing. It gives you time to rebuild financial habits and
begin taking the appropriate steps towards rebuilding your credit, rather
than jumping back into debt right away. There are many methods that can
be used to rebuild and restore your credit over time.
Will I lose all my possessions if I file for bankruptcy?
While many people fear this outcome, it is often not the case. There are
bankruptcy exemptions available that allow you to exempt certain assets
and property from the liquidation or repossession process. You can utilize
these exemptions to keep property like cars, homes, and land. You will
need to work closely with an attorney to ensure that you get as many exemptions
as you are eligible for.
What should I do if a creditor is harassing me?
If you feel like a creditor is harassing you, then you should speak with
a lawyer right away. Creditors are not allowed violate The Fair Debt Collection
Practices Act, which states that they cannot yell or call you names over
the phone, cannot call you multiple times a day, cannot call you at unreasonable
hours, such as early in the morning and late at night. It also states
that creditors cannot call you at your place of work or leave threatening
messages. If they violate your rights, you may be able to pursue legal
action against them and end their collection practices!
I bankruptcy right for me?
This can be a tough question to answer. The bottom line is that, although
bankruptcy is a great financial tool, it is not right for everyone's
financial situation. For this reason, it is crucial that you discuss your
case with a seasoned bankruptcy attorney who can walk you through the
process and review your financial situation. If you feel overwhelmed by
debt and believe bankruptcy is truly the only option you have left, make sure you
reach out to my firm today.
I serve clients throughout Middletown, Hartford, New London, New Haven,