New Milford, CT’s Trusted Law Firm for Bankruptcy
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New Milford Bankruptcy Attorneys for:
Chapter 7 Bankruptcy
Chapter 11 Bankruptcy
Many Americans struggle with unmanageable debt. While these times are extremely stressful, you do not have to get through it alone. The Romanello Law Firm is here to provide you with an expert bankruptcy attorney. You can rely on us to help you recover from this challenging time.
Declaring bankruptcy can be intimidating, and we are here to help you through it. While it may seem daunting at first, sometimes it can provide the reset you need to bring your finances back on track.
Experienced Bankruptcy Lawyers
After nearly 20 years in the industry, Romanello Law Firm is experienced, and capable of providing you with up-to-date legal advice. We specialize in representing clients throughout the New Milford CT area.
Our attorneys will provide you with the care you need, and supply you with sound legal representation personalized to fit your situation.
Filing for Chapter 7 Bankruptcy in New Milford, CT
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is the most common type of Bankruptcy in the New Milford Connecticut area. In fact, this type of Bankruptcy is the most common in the United States. Filing Chapter 7 Bankruptcy allows debtors to recover the majority of their debts and start from a fresh slate. The downside filing Chapter 7 Bankruptcy is that it requires the debtor to “liquidiate” most of their assets. This will most likely impact your credit, and require you to surrender your property. Also known as “straight bankruptcy” the debtor’s assets are sold in order to provide payment to the creditor. Following this transaction, the debtor will be released from their accumulated debt. To discover if this form of Bankruptcy is right for you, consult with a trusted Romanello Law Firm attorney.
To qualify for Chapter 7 Bankruptcy relief, you must meet specific mandated requirements. You can take the bankruptcy “mean test” to determine if your household gross income is too high. Alternatively, your household size must fall below the state median income, or you must have a business with substantial debts.
How Does Chapter 7 Work
The process to file for Chapter 7 Bankruptcy begins by filing a schedule, statement affairs, and an official petition. Generally this process can take from four to six months to complete. A business or individual must file the petition with a bankruptcy court servicing the New Milford Connecticut 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
The debtor must cooperate with the trustee and provide all relevant and necessary documentation and information the trustee requests. In exchange, the debtor will be absolved of most debts and personal liability.
The Chapter 7 Discharge in New Milford, CT
At the conclusion of a Chapter 7 Bankruptcy case, the court will discharge the case. At this point in the process the debtor has been released from debts and is no longer held responsible to pay back the aforementioned debts. During the process of filing for Chapter 7 Bankruptcy, the debtor will have to liquidate their assets and pay off creditors.
Filing for Chapter 11 Bankruptcy in New Milford, CT
What is Chapter 11 Bankruptcy?
When a case is filed under Chapter 11 Bankruptcy in New Milford CT, the reasoning is to rearrange the business. It was established as a means for large businesses to restructure existing debt. Following approval by the court, the business can also restructure operations, and established alternate payment plans to dismiss as well as reduce some debts. 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.
For large businesses and corporations seeking to reorganize the business’s debts, filing Chapter 11 Bankruptcy provides a means avoid or limit liquidation. While most small organizations and individuals to not file Chapter 11, it can make sense for these entities in unique situations.
How Does Chapter 11 Work?
Typically for New Milford CT entities this file Chapter 11 Bankruptcy, it begins with a petition being filed in the closest Bankruptcy court to New Milford. Should the petition be voluntary, it will be filled out by the debtor. In the event the petition is involuntary, it may be submitted and filed by a creditor. In addition to the filing for Chapter 11 Bankruptcy, the debtor must file a disclosure outlining all adequate information pertaining to the entities 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
In addition to the disclosure, the debtor must propose a comprehensive strategy to reduce unnecessary costs and pursue additional streams of revenue or income. All of these changes and plans can be ongoing while keeping creditors at a distance.
Confirming the Plans for Chapter 11
To reorganize the debt structure of a New Milford CT business, the debtor must have the plan accepted by the court. The plan will include numerous requirements, but here is an example of some:
- Feasible: Over the term of the plan, it is mandatory that the debtor be able to cover the expenses. Will the plan succeed and will the debtor be able to obtain it? These also factor in payments to creditors.
- Best Interest of the Creditors: The Plan must be in the best interest of the creditors. In other words the creditors must receive an amount in similarity to a Chapter 7 liquidation case.
After the acceptance of the Chapter 11 plan by the closets court to New Milford CT and by the creditor, the debtor will be permitted to reorganize any business related or personal finances.
How Do Chapter 7 and Chapter 11 differ?
Chapter 11 is favored by most corporations and large business owners in the New Milford CT are who are seeking to restructure the business to make debt repayment easier. Chapter 7 is the most common form of bankruptcy for individuals where most debts can be forgiven by liquidating (or selling) certain personal assets to repay debt.
How Can Filing For Bankruptcy Help With Creditors?
When you file for Bankruptcy in New Milford CT, the Bankruptcy will protect you from bill collectors and creditors. The Automatic Stay – an automatic injunction – stops all collection efforts against you and against your property. The automatic stay also prevents creditors from foreclosing on your home and repossessing your property.
What Are the Short-Term Effects of Bankruptcy?
The benefit of Bankruptcy is that you will be relieved of pressures from creditors. That said, Bankruptcy filings require your financial situation to be analyzed and investigated in depth by a Bankruptcy Trustee. Bankruptcy will also require you to obtain permission from the aforementioned trustee before selling any of your assets while repaying your debts.
What Are the Long-Term Effects of Bankruptcy?
Once the bankruptcy of a New Milford CT entities has been concluded, financial problems do not simply vanish. You will have Bankruptcy on our credit history, which will negatively impact your credit for years into the future. Often lenders rely on your credit score to determine your ability to qualify for a loan. That said, declaring bankruptcy doesn’t result in an inability to borrow money ever again, but it may prove more challenging to obtain a loan with an optimal interest rate.
Why Romanello for Bankruptcy in New Milford, CT?
Fill out the Form for a Free Consultation
4 Simple Steps to Bankruptcy in New Milford, CT:
1. Meet With Our Experienced Bankruptcy Lawyers
2. Determine The Plan of Action
3. File With The Court
4. Relinquish Your Debt
Struggling with Bankruptcy in New Milford CT? You can rely on Romanello Law Firm and our team of qualified Bankruptcy attorneys to help guide you through the process.
Have a Question? – 203-205-0891
We are wholly invested in providing sound legal support for our New Milford Connecticut clients, and can provide you with responsible, professional, legal representing suited to meet your needs.
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.