Consumer Debt in Connecticut:

Chapter 7 Bankruptcy · Chapter 13 Bankruptcy

• Eliminate Credit Card Debt
• Eliminate Medical Bills
• Stop Foreclosures
• Stop Wage Garnishments
• Stop Telephone Harassment
• Stop Lawsuits
• Stop Collection Attempts
• Save Your Home
• Save Your Car
• Save Your Business

Are you unable to pay your bills? You may be able to get out from under the burden of debt by filing Chapter 7 bankruptcy

Are you unable, on your income, to make your payments on time? It may be time to work out a Chapter 13 bankruptcy plan for debt reorganization.

If you would like to speak with a Connecticut consumer bankruptcy lawyer call or e-mail our Norwalk law firm today and make arrangements for a free phone consultation.

Chapter 7 Bankruptcy:

The Fresh Start Plan

Chapter 7 bankruptcy is designed to give an honest individual debtor a "fresh start" by discharging certain consumer debts. Some types of debts are not discharged.

How Chapter 7 Bankruptcy Works

In order to complete the Official Bankruptcy Forms which make up the petition and schedules, the debtor(s) will need to compile the following information:

• A list of all creditors and the amount and nature of their claims
• The source, amount, and frequency of the debtor's income
• A list of all of the debtor's property
• A detailed list of the debtor's monthly living expenses, including food, clothing, shelter, utilities, taxes, transportation, and medicine

Certain filing fees must be paid to the clerk of the court upon filing or may, with the court's permission, be paid by individual debtors in installments. Failure to pay these fees may result in dismissal of the case.

The filing of a petition under chapter 7 bankruptcy automatically stops collection efforts by creditors. As long as the stay is in effect creditors cannot pursue any lawsuits, wage garnishments, or telephone calls demanding payments. Creditors normally receive notice of the filing of the petition from the clerk automatically.

The Chapter 7 Bankruptcy Discharge

A discharge releases the debtor from personal liability for the discharged debts and prevents the creditors owed those debts from taking any action against the debtor or his property to collect the debts. The bankruptcy law is complex, and debtors should consult with a bankruptcy lawyer about debt discharge. In most cases the discharge will be granted to a Chapter 7 debtor 60 to 90 days after the date first set for the meeting of creditors.

Grounds on which discharge to a chapter 7 debtor will be denied include: the debtor's failure to keep or produce adequate books or financial records; the debtor's failure to explain satisfactorily any loss of assets; the debtor's bankruptcy crime such as perjury; the debtor's failure to obey a lawful order of the bankruptcy court; and the debtor's fraudulent transfer, concealment, or destruction of property of the estate.

Most claims for credit card debt, medical bills, and other unsecured debt against an individual Chapter 7 debtor are discharged. A creditor whose unsecured claim is discharged may not continue to try to collect the debt.

A discharge under Chapter 7 does not discharge certain specific types of debts, including alimony, child maintenance and support obligations, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and debts for criminal restitution orders. The debtor is still responsible for these debts after the bankruptcy case has concluded. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, and debts arising from a property settlement agreement incurred during or in connection with a divorce or separation are discharged unless a creditor timely files and prevails in an action to have such debts declared excepted from the discharge.

Chapter 7 for Business Liquidation:

Chapter 7 is the Bankruptcy Code's "liquidation" chapter. It is used primarily by individuals who wish to free themselves of debt simply and inexpensively, but may also be used by businesses that wish to liquidate and terminate their business.

Chapter 13 Bankruptcy:

Reducing and Reorganizing Payments to Get You on Your Feet Again

Chapter 13 Bankruptcy is designed to help individuals with regular income who desire to pay their debts but are currently unable to do so. In Chapter 13, under court supervision and protection, the debtor proposes and carries out a repayment plan under which debts are paid, in full or in part, over a three to five year period, during which time creditors are prohibited from starting or continuing collection efforts. If you have regular income, but not enough to make your payments, call or e-mail a Connecticut bankruptcy lawyer about the possibility of reorganizing your debt under Chapter 13.

Call 203-853-2312 for a Free Phone Consultation

Payment Plans · Credit/Debit Cards · Checks