Connecticut Bankruptcy Information
Finding Bankruptcy Attorneys in Connecticut. Filing bankruptcy is difficult, choose the right Chapter 7 or Chapter 13 lawyer. Try our New Free Bankruptcy Evaluation Tool.
Filing Chapter 13 Bankruptcy in Connecticut
Chapter 13 Bankruptcy allows the debtor to keep certain assets. Chapter 13 Bankruptcy is not a liquidated bankruptcy and will not discharge your debts immediately, but it can allow you to repay a portion or all of your debt and give you a fresh financial start.
Chapter 13 Bankruptcy allows you to work with your court appointed trustee to restructure you debt payments under a three to five year bankruptcy repayment plan. Many times the plan may offer more favorable debt repayment terms. At the end of the repayment schedule, if you make all the scheduled debt payments, your qualifying debts will be discharged.
If you are considering filing Chapter 13 Bankruptcy, it is important to contact a Connecticut Bankruptcy Lawyer who will file your petition, schedules, help you develop your bankruptcy repayment plan and appear in court for you. One of the main benefits of filing Chapter 13 Bankruptcy is it will stop home foreclosure, certain types of wage garnishments, and property repossession.
Filing Chapter 7 Bankruptcy In Connecticut
Chapter 7 Bankruptcy is a good option for qualifying individuals who have few or little assets and simply can not pay their monthly debts. Chapter 7 Bankruptcy is the easiest, least expensive and simplest type of bankruptcy. Most unsecure debt such as hospital bills, unsecure personal loans and credit card debt can be discharged. Certain debts will not be discharged by filing bankruptcy. If you are an individual, married couple, corporation or partnership, you may qualify to file Chapter 7 Bankruptcy.
In recent years it has become more difficult to qualify to file Chapter 7 Bankruptcy. The Bankruptcy Abuse Prevention and Consumer Act (BAPCPA) was passed in 2005. One of the main goals of the new law was to increase the number of individuals who will be required to repay their debts by filing Chapter 13 Bankruptcy. The BAPCPA also requires you to pass a certified credit counseling course prior to filing bankruptcy and completing a financial management course before your debt is discharged. The main change in bankruptcy law was requiring individuals to pass an income test to be able to file Chapter 7 Bankruptcy. The goal of the income test is to determine if you have enough disposable income to pay your debts. One quick way to see if you can file Chapter 7 Bankruptcy is to compare your average income for the six months prior to filing bankruptcy compared to the median income of other Connecticut families of similar size. If your income is less than the median income for your state, you may be able to file Chapter 7 Bankruptcy. If your income is more than the median income for your state you have to pass additional means tests.
The means test will take your income over the last six months and deduct certain expenses such as your mortgage payment, car payment, child support and school tuition (up to $1650). If after these deductions are made you can pay $6,000 or $100 per month to your creditors over the next sixty months, you may have to file Chapter 13 Bankruptcy. If you do not pass this test, but you could pay 25% of your income to your creditors over the next sixty months, you may have to file Chapter 13 Bankruptcy.
Connecticut\'s median income is published by the United States Trustee program in the State Median Income List. For the state of Connecticut, after March 15, 2009, the average median income for a single wage earner is $57,505. For a family of two it is $70,827 and for a family of three it is $85,315. For a family of four it is $103,408.
More Help on Connecticut Bankruptcy Information
- Means Test - The means test, which is outlined in Section 707(b)(2) of the Bankruptcy Code, makes it more difficult for individuals to have their debts discharged through Chapter 7 Bankruptcy. - read more
- Repayment Plan - Unlike Chapter 7 Bankruptcy which is a liquidation of the debtor\'s assets, a Chapter 13 Bankruptcy repayment plan allows the debtor to consolidate their debts and repay them over a three to five year period. - read more
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