Common Bankruptcy Myths


Contrary to what you may have heard, assets are not lost in a bankruptcy case, they are preserved by the automatic stay and available exemptions. Bankruptcy law provides for protection of assets and future income.

Bankruptcy law protects hardworking middle class families. It is not for the protection of banks or congressional lobbyists. Since the law protects you and not credit card companies or banks, these powerful financial institutions don't want you to know the truth. They go to great lengths to distort the truth and spend millions to create misconceptions about bankruptcy law or other consumer laws that protect the rights of hardworking borrowers with financial problems.

It is essential to gain an understanding of all your options if you are suffering from burdensome debt loads. With our help, you can get your finances back under control, stop harassment by creditors and alleviate the other stresses that accompany financial problems. Whether you are facing difficulties personally or at your business, we provide professional help that protects you,, your family, and your business, while also protecting your personal and business assets. Our highly qualified Connecticut bankruptcy lawyers can help develop and implement a customized path to your recovery.

At The Law Offices of Neil Crane, LLC, we understand that bankruptcy is a very difficult decision, Everyone has very understandable and obvious reservations about filing. But in many cases, it is the correct and only option which provides any true solution. Understand all the options. Your knowledge is power, and sometimes bankruptcy is the right solution. You need to learn and understand your specific legal options. As one of the leading providers of bankruptcy relief in the Connecticut we inform a broad range of people from many backgrounds by examining their complete family budgets and advising them about the proper choices available for a sound and workable solution. We understand the best alternatives for protecting assets, rebuilding financial lives, rebuilding good credit and gaining a fresh financial start. We can help you decide if bankruptcy is the best path for you, based on your particular situation.

Contact us today to schedule a free initial consultation to learn how bankruptcy law protects your assets. We will discuss your concerns and your financial situation in full during our first meeting. Our attorneys serve clients at offices across the state, including Hamden, Bridgeport, Waterbury, Rocky Hill and Ridgefield.

Setting the Record Straight About Bankruptcy Misconceptions

Fact: Bankruptcy is done to protect assets from creditors.

A properly filed case will not result in any loss of assets. Bankruptcy law provides for liberal "exemptions" or allowances for assets that are protected for you and necessary to your fresh start. Bankruptcy is filed to protect what you own and get rid of what you owe. Homes, automobiles, personal belongings, furniture and other assets are protected by bankruptcy law, including all pensions and all forms of IRAs up to $1 million along with cash of up to $12,750 per person. These assets are protected from your creditors so you can restart and rebuild your family's future.

Fact: Bankruptcy will not cause you to lose your home or take your car.

Bankruptcy law does just the reverse - it saves your assets like houses and cars from creditors' lawsuits, attachments, repossessions and foreclosure.

Fact: Bankruptcy can prevent foreclosure and repossession.
All debt collection actions in any state or court in the country are immediately stopped by a bankruptcy filing, including repossessions, lawsuitsforeclosure, and attachments. Bankruptcy under any chapter protects all of your assets immediately upon filing. The automatic stay of bankruptcy takes effect immediately after filing for bankruptcy, stopping the foreclosure process, preventing collection actions and stopping harassment from creditors.

Fact: You can maintain your mortgage, auto loan and other property in bankruptcy.

By continuing to make secured loan payments on your mortgage and auto loan, you will maintain your home and keep your car untouched by the bankruptcy filing. Bankruptcy allows for the restructuring of mortgages auto loans and other debts that may be behind, you need additional assistance with these secured loan payments

Fact: Credit Scores and Bankruptcy: You can begin rebuilding your credit score and obtain credit cards immediately after filing for bankruptcy.

Creditors love to extend credit to post-bankruptcy clients. They have good income, reduced debt, or no debt at all. Even though you can borrow money again right away, it pays to be careful. Credit after bankruptcy has become easy - we make sure you are well-schooled about the advantages of good credit and the dangers of new debt.

Fact: Mortgages after Bankruptcy: You can still obtain a mortgage or an auto loan after filing for bankruptcy.

Re-establishing credit after bankruptcy is not like it used to be. Credit cards and car loans are quickly available at good rates within months of a Chapter 7 bankruptcy. By restarting with a limited amount of credit, and staying current on post-bankruptcy payments,bankruptcy actually improves your credit worthiness by ending defaults, reducing unmanageable debt loads and improving your family's debt-to-income ratio. Now more than ever, bankruptcy, followed by sound financial practices, rebuilds credit and allows for manageable financial obligations and high credit scores.

Fact: Filing bankruptcy is a federal right granted to all U.S. citizens.

Filing for bankruptcy is not taking the easy way out. For people who need to file for bankruptcy, it is an alternative provided to you under federal law. You have the right to create a financial fresh start and obtain relief from creditors and unmanageable debt problems. Unregulated banks and lenders with excessive interest payments and fees have become a dangerous force against American consumers and our economy. As a result, bankruptcy is created for the protection of middle class Americans at risk.

Bankruptcy clients and middle class consumers are some of the hardest working families in America. Some have made mistakes, but all have worked hard to solve those mistakes. Many of these mistakes were assisted by improper actions by banks and a lack of governmental regulation, problems that are still not being addressed in any fashion by banks or American government. The banks got their bailouts and their settlements, but the hardworking middle class got no assistance.

For many middle class Americans, the only protection left is bankruptcy law, and under that law, you have a right to relief and a fresh start.

Fact: A properly qualified and experienced bankruptcy attorney is necessary to assure your success.

The bankruptcy system works, but it isn't easy. It takes experienced counsel and practiced expertise. Reliance on the assurances of non-qualified "experts," out-of-state companies or "friends" can seriously jeopardize your chances of successfully finding debt relief. The knowledge and experience of a highly qualified attorney are the key to presenting your case efficiently and effectively, resolving your legal needs in a customized manner specific to your precise legal and financial problems. This is a highly specialized area of the law. Your future is too important to trust to anyone other than a true local bankruptcy attorney with a track record of resolving financial issues for people just like you.

At the Law Offices of Neil Crane, experience, reputation and hard work assure your successful case.

Contact Our Connecticut Bankruptcy Law Firm - We Know the Facts From the Fiction

We offer a free initial consultation. Please do not hesitate to call us today at 203-230-2233 or toll free at 888-249-3027, or complete our online contact form to discuss your questions and concerns with an experienced bankruptcy attorney. When you call us, you will always speak to a live attorney. We never use voicemail. We are committed to providing excellent service to every client, every day.

Se habla español.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.