Myths Concerning Bankruptcy

There are many myths and misconceptions concerning bankruptcy. Here are some of those myths, and the facts to help you understand bankruptcy more clearly.

Myth 1: Everyone will know I filed for bankruptcy. The truth is, unless you are running for office, or otherwise famous, it is unlikely that anyone will know you have filed bankruptcy besides your creditors. Bankruptcy is a public legal proceeding, and some local newspapers print the names of people in the community that have filed. But again, unless you are a public figure, it is unlikely to receive much attention.

Myth 2: If I file Chapter 7, all my debts will be wiped out. Truth: There are certain types of debts that cannot be discharged. These include child support, alimony, student loans, criminal restitution, and debts acquired as the result of fraudulent acts.

Myth 3: It is too hard to file for bankruptcy. Truth: It is not difficult to file for bankruptcy. It is even easier if you have the help of a good bankruptcy attorney.

Myth 4: Only deadbeats file bankruptcy. Truthfully, many people file for bankruptcy after a life-altering event such as a divorce, serious illness, or loss of employment. These people have tried to pay their bills, but have fallen further and further behind, and just need help to get a fresh start.

Myth 5: I will never be able to have good credit again. Fortunately, this is not true. Many lenders are willing to give you another chance, even quickly following a bankruptcy.
There are many other misconceptions about bankruptcy. If you have questions and reside or have a business in the State of Connecticut or Massachusetts, it is wise to consult with a Connecticut Bankruptcy Attorney in your area for further information and answers to your concerns.
Richard Croce - Rich@rrc-llc.com