Bankruptcy Myths

Myths About Bankruptcy.

With our bankruptcy experience, there are many misconceptions that we always hear in our Downtown Denver office that we would like to share with you. We hope the following information will clear up any misconceptions.

1. Everyone will know I have filed for bankruptcy in Colorado.
2. All debts are wiped out in Chapter 7 bankruptcy.
3. I will lose everything I have.
4. I will never get credit again.
5. If you are married, both spouses have to file for bankruptcy.
6. In Colorado, it is really hard to file for bankruptcy.
7. Only deadbeats file for bankruptcy.
8. I do not want to include certain creditors in my bankruptcy filing.
9. You cannot get rid of back taxes through bankruptcy.
10. In Colorado, you can only file for bankruptcy once.
11. I can purposefully max out all of my credit cards before the bankruptcy

Everyone will know I have filed for bankruptcy in Colorado

Unless you are a prominent person or a major corporation, the chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding in Colorado, the numbers of people filing for bankruptcy protection in Colorado is such that very few publications have the space, the manpower or the inclination to run all of them. Moreover, who has the time to go to the Denver Bankruptcy Court and search through millions of documents to find your bankruptcy? Back to Top

All debts are wiped out in Chapter 7 bankruptcy

There are certain types of debts that cannot be erased. They include child support and alimony, student loans and debts incurred as the result of fraud. If you've defrauded someone and a judgment has been made against you, that won't be erased either. Weselis & Suchoparek LLC can advise you on all possible scenarios before you file for bankruptcy in the U.S. Bankruptcy Court in the District of Colorado. Back to Top

I will lose everything I have.

This is the misconception that keeps people who really should file for bankruptcy from doing it here in Colorado. Many people they think the government will sell everything they have and they'll have to start over in a cardboard box, which is not true. While the bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing. Even better is the fact that Colorado has some of the best exemptions in the country if used correctly. For most people, they will keep everything they have through the bankruptcy here in Colorado. Moreover, if you have a mortgage or a car loan, you can usually keep those as long as you keep making the payments. From experience, this is one of the areas in which it is essential to have a competent Colorado bankruptcy attorney. Using the wrong exemptions can cause you to loose property that could have been easily kept if your Colorado bankruptcy case was done correctly. Back to Top

I will never get credit again.

Quite the contrary. It will not be long before you are receiving credit card offers and loan offers again. There are numerous companies that will provide credit to you after a bankruptcy. Keep in mind that the interest rates will likely by high for the first few years. However, we do not advise any of our clients to run up the bills again, but if someone does need an automobile for example, they will be able to get credit and purchase their desired vehicle. Also, if you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it as a creditor since you don't owe any money on it. That means you might be able to keep that card even after the bankruptcy. Back to Top

If you are married, both spouses have to file for bankruptcy

It is not uncommon for one spouse to have a significant amount of debt in their name only. However, if spouses have debts they want to discharge that they are both liable for, they should usually file for bankruptcy protection together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who did not file. Back to Top

In Colorado , it is really hard to file for bankruptcy.

You hire us for a reason. The Colorado bankruptcy attorneys of Weselis & Suchoparek LLC do all the work for you and discuss all of the options available to you. We provide the best full representation possible to all of our clients. Although our office is located in downtown Denver, Colorado, we service all cities in Colorado such as Fort Collins, Colorado Springs, Pueblo, and Grand Junction. Back to Top

Only deadbeats file for bankruptcy

Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job, a serious illness, or a severe decline in the Colorado real estate market. We have had clients who make more than $200,000 a year here in Colorado and have many that are currently unemployed. There are a variety of circumstances that lead individuals to seek bankruptcy relief. The attorneys at Weselis & Suchoparek LLC strongly believe that all individuals are entitled to a second chance. Additionally, the bankruptcy option is a legal remedy that allows you debt relief under the United States Bankruptcy Code. Back to Top

I do not want to include certain creditors in my filing because

it is important to me to pay them back someday and if the debt is discharged, I cannot repay them. When you file for bankruptcy here in Colorado, you are no longer obligated to repay them, but you always have that opportunity. If your conscience will not let you sleep at night because you did not pay your debts, there is nothing in the Bankruptcy Code or Colorado law that prevents you from doing that once you are back on your feet. But bankruptcy is an all-or-nothing deal, so you have to include all your creditors in the petition. Back to Top

You cannot get rid of back taxes through bankruptcy

Generally speaking, this is true. However, many times taxes older than 3 years can be discharged. Please give Weselis & Suchoparek LLC a call and we can discuss all your Colorado bankruptcy options. Back to Top

In Colorado, you can only file for bankruptcy once

The truth is that you can only receive a bankruptcy discharge in a Chapter 7 bankruptcy once every eight years. For a Chapter 13 bankruptcy, you can file more often than that. Thus, you still have many bankruptcy options available to you even if you do not think you qualify for a Chapter 7 bankruptcy. Weselis & Suchoparek LLC can advise you on all your Colorado bankruptcy options. Back to Top

I can purposely max out all my credit cards before the bankruptcy

file for bankruptcy in Colorado, and never pay for the things I bought. That is called bankruptcy fraud and this may cause many legal problems for you in addition to being stuck with the debt. Do not do it! It is not worth it! Back to Top