Bankruptcy Attorneys in Greater Danbury
Although no one plans to file a bankruptcy case, there are many situations such as job loss, illness, injury or business failure that might put you in this predicament. At this time, you must be financially responsible and take action the correct way. Most creditors and banks will encourage debt financing through low interest rates and subprime mortgages.
By filing bankruptcy, you are given a fresh start and opportunity to retain your financial security. In order to help homeowners gain control over their financial situation, we help clients with declaring: chapter 7 bankruptcies.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common form of bankruptcy in the United States, mostly due to the process being more affordable and quicker to file. It’s often regarded as “liquidation bankruptcy” because it helps most individuals and businesses eliminate debt. By filing a Chapter 7 bankruptcy you could potentially eliminate medical bills, credit card bills and other unsecured debt to clear out your debt and get a fresh financial start.
You can do this all while retaining ownership of your home and car. This is made possible because each state has a list of exemptions of what property you are allowed to protect. The federal system and most states may let you keep:
- An amount of equity in your home
- Personal property such as retirement accounts
- Household goods or clothing
Although exemptions are made available, you still have to pay the lenders of property, such as car loans and your house mortgage. Before filing bankruptcy in Chapter 7, our office will review your assets so we can protect your home, automobile and other assets as exemptions.
In order to qualify for Chapter 7 bankruptcy, you must either have a business with significant debt, or have a household size that falls below the state median income. We will also run your income through the bankruptcy “mean test” to determine if your household gross income is within bankruptcy guidelines. Once we determine if you are eligible for Chapter 7, you will need to provide us with sufficient information on your assets and debts in order to determine which exemptions you qualify for. If your income does not qualify the Romanello Law Firm will discuss other possible avenues to remove your debt.
Where Can You Seek Help for Bankruptcy?
Depending on the type of bankruptcy you are seeking, a bankruptcy lawyer will be able to evaluate your current situation and recommend which type you should file and how to go about the process. Depending on what type you file, the results may vary. You could be lowering, erasing or reorganizing your debt.
To receive advice for filing bankruptcy, reach out to us at Romanello Law Firm.