Danbury, CT’s Trusted Law Firm for Bankruptcy


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Danbury Bankruptcy Attorneys for:

  • Chapter 7 Bankruptcy

  • Chapter 11 Bankruptcy

Unmanageable debt is a common problem for many Americans, but you don’t have to go through this tough time alone. Here at Romanello Law Firm, one of our experienced bankruptcy attorneys can help you get your life back on track.  

Filing bankruptcy is never ideal and no one is ever quite prepared for it. But, declaring bankruptcy can be that fresh start that you need.

Experienced Bankruptcy Lawyers

With almost two decades worth of experience, Romanello Law Firm can provide sound legal advice and representation for clients throughout Danbury as well as Connecticut and New York.

When we take on your case, know that we are committed to providing you with legal representation that is tailored to your needs.

Filing for Chapter 7 Bankruptcy in Danbury, CT

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is the most common type of Bankruptcy in Danbury and all over the United States. By filing for this type of bankruptcy, debtors will be able to get rid of most of their debt and start over fresh. The only downside comes from having to “liquidate” your assets, giving you a loss of property and lower credit score. Chapter 7 may also be referred to as “straight bankruptcy” because of how debtor’s assets are sold and creditors will take the payment. Only after this transaction will a debtor be free of their accumulated debt. In order to find out the best time to file a Chapter 7 discharge, we advise that you consult with one of our attorneys on the matter.

In order to qualify for relief under the Chapter 7 Bankruptcy code you must meet certain requirements. You must either have a business with significant debt, or have a household size that falls below the state median income. You can also take the bankruptcy “mean test” to determine if your household gross income is too high.

How Does Chapter 7 Work

Filing for Chapter 7 begins with an official petition, schedule and statement affairs. This can take between four to six months until completion. An individual or business should file the petition with a bankruptcy court servicing the Danbury area as well as filling out an Official Bankruptcy form that will include 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

It’s important that the debtor cooperates with the trustee and provides them with all of the necessary documents or information they may request. In exchange, the debtor will be discharged of personal liability for most debts.

The Chapter 7 Discharge in Danbury, CT

The end of a Chapter 7 case will come with a discharge by court order. This order means that the debtor has been released from any accumulated debt, and is no longer responsible for paying off these debts. During the process of Chapter 7, the debtor will have to liquidate their assets and pay off creditors.

Filing for Chapter 11 Bankruptcy in Danbury, CT

What is Chapter 11 Bankruptcy?

For a case to be filed under Chapter 11 Bankruptcy, it is for the purpose of rearranging your Danbury business. It was created for the purpose of recognizing a large business with heavy debt seeking to restructure their debt.  After being approved by the court, the business can redevelop its operations and create a plan to pay a fraction of the debts and dismiss others.

Filing Chapter 11 is common for for large corporations that want to reorganize their business from heavy debt burdens and avoid liquidation at any cost. Although it’s normally uncommon, individuals or smaller companies in Danbury can file for Chapter 11 in certain situations.

How Does Chapter 11 Work?

A Chapter 11 Bankruptcy case will usually begin with filing a petition with the closest bankruptcy court in Danbury. If the petition is voluntary, it will be filled out by the debtor. If it’s involuntary, then it may be filled by a creditor. Alongside filing for Chapter 11, a debtor must also file a disclosure statement that provides adequate information about financial affairs. This information can include:

  • 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

The debtor must also propose a plan to help trim any unnecessary costs as well as seek alternative sources for revenue or income. All of these changes and plans can be ongoing while keeping creditors at a distance.

Confirming the Plans for Chapter 11

In order to successfully reorganize a Danbury business, a debtor must have their plan accepted. The plan will include numerous requirements, but here is an example of some:

  • Feasible: Will the plan succeed and will the debtor be able to obtain it? Over the term of the plan, the debtor must be able to cover the expenses. These also include payments to creditors.
  • Best Interest of the Creditors: For a plan to be confirmed, it must meet the best interests of the creditors. This means that the creditors must receive a similar amount to that of a Chapter 7 liquidation case. Under certain requirements, this may require that the debtor pay in full.

After the acceptance of the Chapter 11 plan by the closets court to Danbury and by the creditor, the debtor will be free to reorganize any personal or business related finances.

Bankruptcy FAQs

How Do Chapter 7 and Chapter 11 differ?

Chapter 7 is the most common form of bankruptcy for individuals where most debts can be forgiven by selling (or liquidated) certain personal assets to repay debt. Chapter 11 is favored by corporations or businesses owners in Danbury and is a form of restructuring that helps make debt repayment easier.  

How Can Filing For Bankruptcy Help With Creditors?

The moment you file for bankruptcy in Danbury, you will be protected from your creditors or bill collectors. The Automatic Stay – an automatic injunction – stops all collection efforts against you and against your property. The automatic stay also prevents creditors from repossessing your property and from foreclosing on your home.

What Are the Short-Term Effects of Bankruptcy?

On a positive note or rather immediately, creditors will stay off your case. On the other hand, once you file, all of your financial dealings may be examined closely by a bankruptcy trustee, and you’ll need their permission to sell any of your assets or when you are paying your debt back.

What Are the Long-Term Effects of Bankruptcy?

After your Danbury bankruptcy has been completed, all of your problems won’t immediately halt. You will still have bankruptcy on your credit history which can affect your ability to gain credit in the future. Typically, Lenders will use your credit report to decide if you qualify for the loan.  Declaring bankruptcy doesn’t mean you won’t ever be able to borrow money again, but at first, it may be harder to get a loan with a good interest rate.

Why Romanello for Bankruptcy in Danbury, CT?


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4 Simple Steps to Bankruptcy in Danbury, CT:

1. Meet With Our Experienced Bankruptcy Lawyers

2. Determine The Plan of Action

3. File With The Court

4. Relinquish Your Debt

If you are currently struggling with bankruptcy and seeking for a qualified lawyer in Danbury, turn to Romanello Law Firm. We strongly recommend that you receive help in your case because bankruptcy can lead to long-term financial and legal consequences.

Have a Question? – 203-205-0891

We are entirely committed to providing accessible and responsive legal representation that is uniquely tailored to meet the ever-changing needs of our clients.

We want to help you move on and live a better life, so contact us today if you are in need and we can get started right away.

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