Filing for Chapter 7 Bankruptcy in Monroe, CT
What is Chapter 7 Bankruptcy?
In Monroe and throughout the entire country the most common type of Bankruptcy is Chapter 7 Bankruptcy. This is because when you file for Chapter 7 you will get rid of the majority of your debt and have a fresh start. When you file you will have bankruptcy on your credit score for 10 years. This may make attaining a loan difficult for that time, but so does a high debt to income ratio.
There are times when you could be denied filing for Chapter 7. A bankruptcy attorney servicing Monroe can help you understand the complexities and determine if you meet the requirements for a Chapter 7 bankruptcy. Some of the requirements are based on income and household size. In all cases, you must possess significant business or personal debt.
How Does Chapter 7 Work
The process for filing for Chapter 7 begins with an official petition, schedule and statement affairs. You will need to file your personal or business petition with a bankruptcy court in Monroe. The whole process can take between four to six months to reach completion. Some of the information needed for an official bankruptcy for will include:
- 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
You will also need to take a bankruptcy “mean test” to determine if your household gross income is too high. When the process is complete the filer will be exempt of personal liability on most of their debts.
The Chapter 7 Discharge in Monroe, CT
At the end of the process a discharge will be granted to the debtor. However, there are factors that can cause the discharge to be revoked or denied. For instance, failure to disclose all assets during your case can cause your to have your discharge revoked.
There are also some debts that cannot be discharged. These are debts such as alimony and child support. Still others, such as student loans, are rarely discharged. Our experienced attorneys will help you through each stage of this process.