Filing for Chapter 7 Bankruptcy in New Fairfield, CT
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is the most commonly filed form of bankruptcy in Connecticut, New York, and most of the United States. The Chapter 7 Bankruptcy is designed to service individuals and smaller companies, as it is more affordable and quicker to file. This can allow for a swift start to your fresh beginning. The Chapter 7 Bankruptcy is recognized as “liquidation bankruptcy” because it can enable individuals to remove their debt, typically through asset liquidation. This can result in a reduced credit score for the person with a temporary impact on qualifying for loans. Further, the Chapter 7 Bankruptcy is recognized as a “straight bankruptcy” because of the direct or straight action that is taken with the creditor. Necessary payments are still required to be paid. There is an application process for a Chapter 7 Bankruptcy, and when that is approved by a local court, your accumulated debt is then removed.
Romanello Law Firm stands right by your side during the entire process, helping our New Fairfield clients understand the entire process. There are certain requirements for a Chapter 7 Bankruptcy, such as owning a business with an excessive amount of debt, or even a household size that is marked underneath the median state income. We can set you up to take a “mean test,” which can help you determine if your household gross income is too low or too high.
How Does Chapter 7 Work
As per usual with most legal situations, there are specific steps to be taken during the Chapter 7 Bankruptcy process. Romanello Law Firm makes sure you are aware of and understand what is expected when filing. The filing process begins with a petition for bankruptcy, which can include an established schedule with a statement of affairs. The time for this filing process can range anywhere from four to six months. Working with a local New Fairfield court can help the process move along quickly. Certain information is also required for this filing process, 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.
We suggest that our New Fairfield clients be patient and cooperate with our attorneys, providing all of the necessary information and documentation for the filing process.
The Chapter 7 Discharge in New Fairfield, CT
The discharge for accumulated debt is given once the bankruptcy filing is approved by the court. This may require the debtors to pay off some parts of the debt, but paying off the entire amount to the creditor is no longer expected of the debtor.