Southbury, CT’s Trusted Law Firm for Bankruptcy


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Southbury Bankruptcy Attorneys for:

  • Chapter 7 Bankruptcy

  • Chapter 11 Bankruptcy

Facing Bankruptcy is not an uncommon problem for Americans. In fact, a large majority of citizens will face the challenge of unmanageable debt. This is not an easy process to go through, but with the help of qualified, experienced lawyers you can make it out unscathed.

Here at Romanello Law Firm, we focus on providing excellent customer service combined with over 20 years of service in the industry. Filing for Bankruptcy is never ideal and there will never be a “right time” for it to come, but you’re allowing yourself and your family to start over with a clean slate.

Experienced Bankruptcy Lawyers

The industry of law is always changing, but our lawyers have experience spanning over 2 decades. Within all of this time, we’ve come to understand many different aspects of Bankruptcy as well as being able to assist individuals living in the Southbury area.

When you work with Romanello Law Firm, we’ll start by figuring out the best plan of action for your situation and how we can ease the burden of bankruptcy.

Filing for Chapter 7 Bankruptcy in Southbury, CT

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is often favored by individuals and happens to be the most common type of Bankruptcy in Southbury and throughout the entire state of Connecticut. When you plan on filing for Chapter 7, a bankruptcy trustee will take ahold of your assets and use them to pay off your debt with creditors. The process usually includes liquidation, which means to take certain securities or commodities and selling them off. By liquidating your assets, you will unfortunately lose some of your property and possibly end up with a lower credit score.

According to the Bankruptcy Code, some debtors will be allowed to keep “exempt” property after they get rid of other assets. If you are contemplating Chapter 7 Bankruptcy in Southbury, we would advise that you reach out to our qualified attorney’s to discuss your current situation.

To qualify for Chapter 7 Bankruptcy, there must be a business, individual or household that is living and making under the state median income. You will also need to take a bankruptcy “mean test” to understand where your current income is and if it’s too high to qualify.

How Does Chapter 7 Work

Chapter 7 cases usually begin by filing for an official petition as well as a statement including your current affairs. This process can take anywhere from four to six months. To properly finish the petition, you must file it at the nearest bankruptcy court to Southbury. You are also required to fill out an Official Bankruptcy form that has:

  • An entire list of all creditors and the nature of their claims
  • Source, amount and frequency of debtor’s income
  • An entire list of all the debtor’s property
  • A detailed list of the debtor’s monthly living expenses, food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

To make sure that you have filed your Chapter 7 bankruptcy accurately, it’s important that any debtor will provide a trustee with all of the necessary documents and information for the case. By providing all of the accurate information necessary, a debtor has a better chance of being discharged for a majority of their debts.

The Chapter 7 Discharge in Southbury, CT

To successfully complete a Chapter 7 Bankruptcy, a debtor needs to be discharged with a court order near Southbury. The process of filing for bankruptcy will usually result in liquidating a majority of assets in order to pay off creditors. After the entire process has been completed, the awarded court order will qualify the debtor to be exempt from accumulated debt.

Filing for Chapter 11 Bankruptcy in Southbury, CT

What is Chapter 11 Bankruptcy?

On the other hand, there is another form of Bankruptcy that is catered toward businesses. If your Southbury business is struggling with debt, you can turn to a Chapter 11 Bankruptcy. This type of Bankruptcy usually involves larger corporations or businesses that are facing debt and need to “restructure” their business. This type of Bankruptcy is not normally used for individuals, but there can be exceptions.

Restructuring a business can take the form of switching around operations and creating an entire plan of how to pay off debt. This is an alternative to entirely liquidating assets and allows for businesses to still be profitable even in debt. In order to fully complete a Chapter 11 bankruptcy, a debtor must create a plan that includes paying off creditors, and it must be approved by the nearest court to Southbury.

How Does Chapter 11 Work?

The process of Chapter 11 Bankruptcy is similar to Chapter 7. Your Southbury business must file a petition with the closest court to your area. This petition can go two ways. In one scenario, it can be voluntary where a debtor will fill it out. On the other hand, it may be involuntary, where a creditor must fill out the petition. Debtors must also complete a full disclosure statement that includes their financial affairs. Some of the information needed will be:

  • History of debt
  • Collection of assets and liabilities
  • Documents proving current income and expenditures
  • A full list of executory contracts or unexpired leases
  • Statement including current financial affairs

To fully complete a chapter 11 Bankruptcy, those in question must present a plan that helps to get rid of unnecessary costs, but also includes alternative sources to generate income and revenue for the Southbury company.

Confirming the Plans for Chapter 11

A Chapter 11 Bankruptcy will be successfully completed when your Southbury business presents a plan to the court and it has been accepted. This plan has a few requirements, but here’s a general idea of what needs to be included:

  • Feasible: Will your Southbury business be able to pay off your debt successfully? Will it be completed within the timeline? All plans must include the debtor covering all of the expenses and paying off debts to creditors.
  • Best Interest of the Creditors: Does your proposed plan include paying off creditors in a decent way? The plan should be similar to the way that creditors are paid off in a Chapter 7 Bankruptcy. In some scenarios, debtors must pay off creditors in full and this must be presented in the plan.

Once the nearest court to Southbury accepts your business plan, the debtor may begin reorganizing their business in order to pay off creditors and free themselves from debt.

Bankruptcy FAQs

How Do Chapter 7 and Chapter 11 differ?

In comparison to one another, a Chapter 7 is a widely used bankruptcy case throughout Southbury and all of CT. For this type of bankruptcy, a debtor (usually an individual) will pay off their debt by liquidating assets. A Chapter 11 Bankruptcy usually involves large corporations or businesses who want to avoid liquidation but will restructure their business in order to trim unnecessary costs. This will usually result in an easier way to make debt payments will still making a profitable business.

How Can Filing For Bankruptcy Help With Creditors?

Once you file for Bankruptcy in Southbury, you will be protected against harassing creditors. An automatic injunction will be introduced (called an “Automatic Stay”) and it will help to keep creditors off your back and away from your personal property. Usually in this situation, creditors will also not be able to repossess your property or foreclose on your home or Southbury business.

What Are the Short-Term Effects of Bankruptcy?

Right off the bat, after filing for Bankruptcy, you will stop seeing harassment from creditors. You will also need to have a bankruptcy trustee take a look at your financial dealings, and with their acceptance, you can start to sell off assets.

What Are the Long-Term Effects of Bankruptcy?

After the entire Bankruptcy process, you may still have long-standing issues. Filing for Bankruptcy is a way to escape your current debt situation, but it can still be harmful to your financial standings. Bankruptcy will show up on your credit history and may be a problem with you qualifying for certain loans. Declaring bankruptcy may have its downsides but it doesn’t mean you can’t borrow money down the line. It will be hard in the beginning to apply for loans without a good interest rate.

Why Romanello for Bankruptcy in Southbury, CT?


Fill out the Form for a Free Consultation

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4 Simple Steps to Bankruptcy in Southbury, 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 find yourself in a bad financial state and you are currently facing the decision of declaring bankruptcy, please reach out to us at Romanello Law Firm. We believe in providing all of our Southbury clients with personable customer service and customized plans.

Have a Question? – 203-205-0891

When you are searching for the right legal representation in the Southbury area, consider our experienced lawyers here at Romanello Law Firm. We are dedicated to providing you with the right treatment and the best plan of action for your situation.

You may be struggling at the moment, but in time, you will find a way to get back to the life you once knew. By doing the right thing and seeking legal help, you are bettering your situation and will be on the right track in your financial affairs.

MackAdminBankruptcy – Southbury