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Bankruptcy Myths

There's Good and Bad Bankruptcy Information

If you are considering bankruptcy, it is important to have accurate, up-to-date information about the law and the bankruptcy process. There are a number of prevalent myths about bankruptcy that can only make the situation more confusing.

At Attorney Joseph J. D'Agostino, Jr., LLC, we give our clients sound legal advice on what bankruptcy can and cannot do for them. On this web page we would like to dispel some bankruptcy myths to make your decision easier for you.

Contact us online or by telephone at 203-265-5222 to speak with an experienced Connecticut personal bankruptcy attorney. For your convenience, we maintain two offices, one in Wallingford and one in Stratford.

Myth: "I can't file for bankruptcy because of the new laws."

Fact: The bankruptcy law changes of 2005 simply added a few hurdles to the process. If you qualified for bankruptcy under the old rules, you will most likely qualify today.

Myth: "They will take away all my property if I file for Chapter 7 bankruptcy."

Fact: Most people who file for Chapter 7 don't have qualifying assets to lose. In other words, the court will most likely allow you to keep your house, car and other personal property.

Myth: "If I file for bankruptcy, I'll never get credit again."

Fact: Bankruptcy will stay on your credit report for 7 to 10 years, but will not stop you from getting credit. As soon as your debt is discharged, you can start rebuilding your credit by taking on manageable amounts of debt and staying current on payments.

Myth: "Creditors will still harass me even after I file for bankruptcy."

Fact: Bankruptcy puts an "automatic stay" on all creditor actions. As soon as this protection is granted, your creditors will be legally forbidden from contacting you.

Myth: "Bankruptcy is for bad, careless people."

Fact: Most bankruptcies are the result of unforeseeable, unavoidable circumstances. Whether your debt problems are a result of job loss, medical bills or simply bad fortune, bankruptcy is not a moral decision — it is a practical means of solving a financial problem.

Contact Us

If you are deep in debt and want a way out, we are here to help you explore your options. Contact us online or by telephone at 203-265-5222 to speak with an experienced Wallingford bankruptcy lawyer.