Chapter 7 Bankruptcy Lawyer
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is also known as Street or liquidation bankruptcy. It is a type of bankruptcy that can help you to clear away many types of unsecured debts, such as if you are far behind on your bills and do not have the means to afford monthly payments alongside your living expenses.
Chapter 7 bankruptcy could be a last resort to help you reset your finances. However you may have to give up some of your possessions and it will have a long-lasting and negative impact on your credit.
But what does Chapter 7 bankruptcy do and how does it work? If you have any questions about whether Chapter 7 bankruptcy is for you, talk to a Chapter 7 bankruptcy lawyer in Hartford, CT such as the ones at The Law Offices of Neil Crane.
When you buy an automatic temporary, stay on your current debts. This temporary stay stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property or having your utilities turned off.
The court will take legal possession of your property and appoint a bankruptcy trustee to watch over your case. The trustee’s job is to review your finances, assets and oversee your bankruptcy under the Chapter 7 law. They will sell certain property the bankruptcy will not let you keep such as nonexempt property and use those proceeds to re-pay creditors.
The trustee will also arrange and run a meeting between you and your creditors, which is called a creditor meeting, which is where you will go to the courthouse and answer questions about your filing.
List the property that you do not have to sell or turnover to creditors, which is called exempt property, and the total value that you can exempt varies by state. Reaching out to a chapter 7 bankruptcy lawyer in Hartford, CT, is your best way to know what the state of Connecticut allows
At the end of the process, approximately 4 to 6 months after the initial filing, the court will discharge remaining debts which means that you do not need to pay them anymore. However some types of depths are not dischargeable through bankruptcy, which includes child support, alimony, court fees, tax debt and most student loans.
There are few requirements that you will need me to file for a chapter 7 bankruptcy. You will have to complete an individual or group credit counseling course from an approved credit counseling agency 180 days before filing for bankruptcy. The average of your monthly income during the previous six months must be less than the median income for the same size household in your state, or you must pass a means test which is going to determine if your disposable income is high enough to make partial payments on your unsecured debt. If you do not pass the means test you may still be able to file for Chapter 13 bankruptcy but not chapter 7. In the same vein you cannot file for Chapter 7 bankruptcy during the past eight years, you cannot file for a chapter 13 bankruptcy during the past six years, and if you tried to file for either type of bankruptcy and it was dismissed you have to wait at least 181 days to file for another attempt.