Connecticut Bankruptcy Facts
When Debts Pile Up, Bankruptcy Can Bring Them Down
If you are struggling with large, unpaid credit card bills in Connecticut, are facing foreclosure on your home, owe thousands to the IRS, or are up to your ears in medical costs, you may qualify for bankruptcy protection. Bankruptcy is a process that involves a debtor making a declaration in federal court that they are unable to pay off their outstanding balance with creditors. Whether the debt is a few thousand or a few million, bankruptcy can help you take back your life and emerge from the burdens and stress that financial obligations can bring.
There are several kinds of bankruptcy petitions that can be filed in Connecticut, so it’s important to learn as much as possible about each one so you can make the best decision for your finances. However, there are two chapters that stand out as the most popular in the state due to their favorable resolutions and ease with which they can be approved: Chapter 7 and Chapter 13 Bankruptcies.
Below we will discuss the differences between each chapter and how each petition can benefit you by reducing – or possibly even eliminating – your debts.
Chapter 7 vs. Chapter 13
Chapter 7 is by far the most commonly sought petition in Connecticut. Debtors find it very appealing because both consumers and businesses can apply for this chapter of the U.S. Bankruptcy Code and can have their debts completely wiped out in as little as 3 months. However, this chapter is not without its disadvantages. Although it can give Connecticut debtors a “clean slate” as far as eliminating all (or at least most) unsecured debt, it does so by liquidating the debtor’s assets. This isn’t exactly something a lot of people are keen on doing. There are certain assets that are exempt from creditor seizure, including the debtor’s residence, certain personal items like clothes or retirement accounts, but if the idea still doesn’t appeal to you, there’s always Chapter 13.
Chapter 13 vastly differs from Chapter 7 bankruptcy and produces completely different results. For one, only individuals can petition bankruptcy court for Chapter 13 protection and can expect to remain within proceedings from 3 to 5 years and debts will never be 100 percent wiped out, as they can be through Chapter 7 bankruptcy protection. But while this Chapter can take longer to reduce debt in Connecticut, those who qualify don’t’ have to worry about liquidating any assets. Instead, debts are paid back to creditors through a court-appointed repayment plan.
Each of these chapters offers both advantages and disadvantages to debtors. So then how exactly will you know which option to choose to reduce your debt? That’s where bankruptcy attorneys come in.
Lowering Debts with the Help of Connecticut Bankruptcy Lawyers
Determining which chapter to file can be extremely difficult, as can the entire process of reorganizing debts or liquidating assets – but finding the right attorney who will protect you rights and fight for the best resolution for your case doesn’t have to be.
USAttorneys.com wants you to retain an attorney you can trust will reduce your debts as much as possible and help you emerge from your case in the fastest amount of time. Our site can connect you to the best local Connecticut bankruptcy lawyers in your town who will take on every aspect of your case and stop at nothing to eliminate your financial burdens. No matter how much you owe creditors or why, you can rest easy knowing that when you work with a top Connecticut bankruptcy attorney featured on our site, you will have a dedicated, experienced and passionate attorney on your side who will do everything possible to get rid of your debts quickly and successfully.
Contact one of our featured bankruptcy lawyers in Connecticut today to discuss your best options for reducing debt.