Bethel, CT’s Trusted Law Firm for Bankruptcy


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Bethel Bankruptcy Attorneys for:

  • Chapter 7 Bankruptcy

  • Chapter 11 Bankruptcy

Countless numbers of people all across America suffer from the unmanageable struggle of debt. While this may be a common issue faced, it is not something you need to struggle with on your own. Romanello Law Firm is dedicated to serving the people of Bethel, CT and help you get back on your feet.

The bankruptcy process is unfamiliar for a lot of people and never a desirable goal. With our expert law attorneys, however, we can help you start the new beginning you’re looking for.

Experienced Bankruptcy Lawyers

Romanello Law Firm has been serving the people of the Greater Bethel, CT area for nearly 20 years. We give proper representation and quality and dependable legal advice for all our clients.

When you choose to work with Romanello, you are choosing the promise of commitment. We make sure your legal representation is individualized to your specific situation. Call us today to begin your process with professional and expert legal service.

Filing for Chapter 7 Bankruptcy in Bethel, CT

What is Chapter 7 Bankruptcy?

Across the entire United States, including here in Connecticut and the New York region, Chapter 7 Bankruptcy is the most common type of filed bankruptcy. When you file for Chapter 7 bankruptcy, most debt will be able to be removed, allowing for a fresh start for debtors. This bankruptcy does require the liquidation of the debtor’s assets. This often leads to a loss of property and a decreased credit score. Otherwise known and recognized as a “straight bankruptcy,” Chapter 7 bankruptcy involves the selling of debtor’s assets and allowing for creditors to take the payment. With this process complete, a debtor is released from their gathered debt. It can be difficult to know when to best file for bankruptcy, which is why we recommend all of our Bethel clients to discuss with our attorneys.

There are certain requirements when applying for a Chapter 7 bankruptcy. For relief to be given, our clients must have a company with a notable amount of debt or have a household size that does not match the median income for the state. There is a “mean test,” which can help you determine the level of your household gross income.

How Does Chapter 7 Work

Like most legal procedures, there is a set process when filing for a Chapter 7 bankruptcy. This process starts with an official petition for bankruptcy, which is then followed by a schedule, and then statement affairs. This process often requires four to six months for completion. For a timelier processing, individuals or businesses should file the petition to a court in the Bethel area. An Official Bankruptcy form will also be required, listing information such as:

  • 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 the debtor’s property
  • A detailed list of the debtor’s monthly living expense, food, clothing, shelter, utilities, taxes, transportation, medicine, etc

To guarantee a smoother process, it is more beneficial when the debtor cooperates with the trustee and attorneys, providing the required documents and information. As a result, debtors will be released of personal liabilities.

The Chapter 7 Discharge in Bethel, CT

With the process concluded, the debtor will receive a discharge from court order. In laymen terms, the debtor has now been removed of gathered debt and is no longer expected to pay the debts off entirely. As mentioned, the Chapter 7 bankruptcy process will have the debtor liquidate assets to pay off creditors.

Filing for Chapter 11 Bankruptcy in Bethel, CT

What is Chapter 11 Bankruptcy?

The Chapter 11 bankruptcy is designed for helping you rearrange your Bethel business. The Chapter 11 bankruptcy was established with companies in mind, especially those who have accumulate large amounts of debt. If you are looking to restructure your business, Chapter 11 is for you. The court will approve the filing, and then the company can once again develop its operations. This should allow for the repayment of some debts, while others may be dismissed.

Chapter 11 bankruptcy is most common for larger industry members that are looking to reduce debt burdens without the concern of liquidation. Smaller companies and individuals in the Bethel, CT area may also file for Chapter 11 bankruptcy, but it is less common.

How Does Chapter 11 Work?

As with most bankruptcy filings and petitions, the Chapter 11 bankruptcy process starts with the business petitioning to a local bankruptcy court here in Bethel. The petition will be filled out by the debtor if it is voluntarily. If it is not voluntarily, then the petition may be filled out by the creditor. This process also includes the debtor or business to file a disclosure statement with adequate information regarding financial scenarios. Such information can be:

  • History of the debtor
  • A Collection of assets and liabilities
  • Documentation of current income and expenditures
  • A list of any executory contracts or unexpired leases
  • A statement of all current financial affairs

A plan to trim exaggerated costs or seek additional sources of income or payments may be proposed by the debtor. This process can occur while creditors are waiting from a distance.

Confirming the Plans for Chapter 11

Even with careful planning and organization, the reorganization of a Bethel business must still have the plan approved. This plan involves quite a few requirements, such as the following:

  • Feasible: how successful does the plan appear to be? Is it possible within the reach and breadth of the debtor? The debtor must be able to cover all expenses during the allotted time, such as payments to creditors.
  • Best Interest of the Creditors: reorganization plans must be completed with the creditors in mind. Their interest must be served, so that they receive a similar amount for a liquidation case. Certain requirements may call for the debtor to still pay in full.

When the Bethel bankruptcy court accepts the proposed Chapter 11 plan, the debtor is then allowed to reorganize finances on a personal or business level.

Bankruptcy FAQs

How Do Chapter 7 and Chapter 11 differ?

The different processes for bankruptcy are designed to serve different groups. The Chapter 7 process is the most common form of filing for individuals, relying on liquidation of personal assets in order to repay. Chapter 11 is a process more for businesses or corporations looking to restructure without the need to liquidate.

How Can Filing For Bankruptcy Help With Creditors?

With Romanello Law Firm, we help to protect our clients in Bethel when they file for bankruptcy. This protects you from both creditors and bill collectors. With an automatic injunction called the Automatic Stay, collection efforts targeted towards you will be stopped and property protected. The Automatic Stay further prohibits creditors from taking your property or forcing foreclosure.

What Are the Short-Term Effects of Bankruptcy?

With the filing for bankruptcy comes the prevention of creditors. Immediately, creditors can cease attacking. However, when filing for bankruptcy, all financial situations are up for examination by a trustee. This will then require their permission before selling any assets to make sure debts are being repaid.

What Are the Long-Term Effects of Bankruptcy?

Even when the bankruptcy process has been completed for our Bethel clients, there are still some procedures to undergo and technical aspects to deal with. The bankruptcy will still be included in your credit history, temporarily affecting credit growth for the future. If you plan to apply for a loan, lenders will review this same credit report. While bankruptcy does not prevent you from qualifying for a loan, it can make the process a little more difficult, especially to receive a loan with a positive interest rate.

Why Romanello for Bankruptcy in Bethel, CT?


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4 Simple Steps to Bankruptcy in Bethel, CT:

1. Meet With Our Experienced Bankruptcy Lawyers

2. Determine The Plan of Action

3. File With The Court

4. Relinquish Your Debt

Romanello Law Firm is here to serve all people from the Bethel, CT region. If you are struggling with debt, we have expert lawyers and attorneys to help you through the entire process. Bankruptcy can lead to lengthy financial issues and legal difficulties, and we can provide professional service.

Have a Question? – 203-205-0891

We understand the uniqueness of your situation, and we tailor our legal representation to the needs and situations of our Bethel clients. Our services are offered on both accessible and responsible levels, giving each case the attention it both requires and deserves.

Our goal is your security and happiness. Call us today and let’s begin the path back to a better and balanced life.

MackAdminBankruptcy – Bethel, CT