Newtown, CT’s Trusted Law Firm for Bankruptcy

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    Newtown Bankruptcy Attorneys for:

    • Chapter 7 Bankruptcy

    • Chapter 11 Bankruptcy

    All across the country, people in America suffer from large amounts of accumulated debt. This is a common struggle people may have, but Romanello Law Firm is here to help you out with the entire process. We proudly serve all people in the Newtown, CT region with their financial needs.

    Even though it may be common, bankruptcy can be an unfamiliar and intimidating experience. Romanello Law Firm provides professional law attorneys to help you through the whole process and begin a fresh start.

    Experienced Bankruptcy Lawyers

    With nearly 20 years of dedicated experience, Romanello Law Firm gladly serves everyone in the Newtown, CT, area. Our services and expert representation are offered for individuals and entire businesses.

    Romanello Law Firm gives the promise of quality representation. We give our Newtown clients services that can be altered and customized representation for each situation. To begin the process of legal work, give us a call today.

    Filing for Chapter 7 Bankruptcy in Newtown, CT

    What is Chapter 7 Bankruptcy?

    The most common type of bankruptcy filing falls under the Chapter 7 category. This is applicable for both Connecticut and New York, as well as the entire United States. Filing for a Chapter 7 Bankruptcy allows for most debts to be removed, which can enable a fresh start for debtors. The Chapter 7 Bankruptcy process does require, though, debtors to liquidate assets. This liquidation can result in a loss of property and a lower credit score. Chapter 7 is also recognized as a “straight bankruptcy” due to the action taken directly with the creditors. Assets are sold to make necessary payments. When the bankruptcy process is complete, accumulated debt is forgiven and dismissed. Knowing when to start the bankruptcy process and file for it can be a hard decision to make. Romanello Law Firm can help all our Newtown clients with this decision.

    As with most legal practices, there are required steps when filing for Chapter 7 Bankruptcy. For the application to be accepted by the court, debtors must have a business with a sizeable amount of debt or a household income that is below the median state income. A “mean test” can help determine the accurate level of household gross income.

    How Does Chapter 7 Work

    There is a distinguished process for filing a Chapter 7 Bankruptcy, and we can help you along the whole way. It begins with a professional petition for bankruptcy, and establishment of a schedule, and a statement of affairs. This filing process can take anywhere from four to six months. Filing the petition for a local court in the Newtown area can usually promote a quicker process. Certain information will be required in the Official Bankruptcy form, including:

    • 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 encourage our Newtown clients to cooperate with our trustees and attorneys, as this can keep the process smoother. Providing required documents and information and relinquish unnecessary burdens.

    The Chapter 7 Discharge in Newtown, CT

    A discharge will be given to the debtor when the filing process is accepted and completed. Accumulated debt is removed, and paying off debts in their entirety is no longer expected. With the Chapter 7 Bankruptcy, debtors will also be expected to liquidate assets to make necessary payments.

    Filing for Chapter 11 Bankruptcy in Newtown, CT

    What is Chapter 11 Bankruptcy?

    While the Chapter 7 Bankruptcy is more for the individual, Chapter 11 Bankruptcy is curated to help companies and businesses in the Newtown area. Corporations that have gathered excessive amounts of debt can benefit from the Chapter 11 Bankruptcy process. It enables businesses to reorganize and establish new order. With an approved filing from the court, a business is able to start fresh again. The Chapter 11 Bankruptcy process may involve paying some debts while other debts will be dismissed.

    If you are looking to avoid liquidation of assets, then Chapter 11 Bankruptcy is designed for you. It is most beneficial for larger companies in the Newtown, CT area, but smaller companies and even individuals are also able to file for Chapter 11. It is less common, however.

    How Does Chapter 11 Work?

    To begin the Chapter 11 Bankruptcy filing process, a company will need to petition the application to a Newtown bankruptcy court. If the decision to declare bankruptcy is voluntary, then the petition will be filled out by the debtor directly. If the decision is involuntary, the petition may be filled out by the creditor. During this process, the debtor and business will need to provide a disclosure statement with information related to financial situations. This information may 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

    A proposition to cut back on extenuating costs or resources for finding addition income may be suggested by the debtor while the creditor is kept at a distance.

    Confirming the Plans for Chapter 11

    The Chapter 11 Bankruptcy filing is a very direct and precise process. The plan for restructuring must be approved, and there are certain requirements to be met. These requirements include:

    • Feasible: does the propose plan seem successful? Is it plausible for the debtor/business to achieve the plan? All expenses must be covered and accounted for during the time suggested.
    • Best Interest of the Creditors: the filing and petition must be organized with the creditor in mind, serving to their needs. It can sometimes require a similar amount as for a liquidation case and have the debtor pay in full.

    The reorganization of your Newtown business is dependent on the acceptance from the court. With their approval, you can then begin the restructuring.

    Bankruptcy FAQs

    How Do Chapter 7 and Chapter 11 differ?

    Chapter 7 and Chapter 11 Bankruptcy are created with different purposes, and as a result, serve different needs. The most common form of filing is Chapter 7 Bankruptcy due to its convenience for individuals. This process depends on liquidation of assets for payments. Chapter 11 Bankruptcy does not require liquidation and is designed more for large companies that are looking to organize their structure again.

    How Can Filing For Bankruptcy Help With Creditors?

    When you choose to work with Romanello Law Firm, you are choosing quality representation and protection. Our services are here to help protect Newtown debtors from aggressive creditors. We can help with an Automatic Stay, which is an automatic injunction that protects your property. Automatic Stays can prevent forcible actions taken against your property, preventing foreclosure.

    What Are the Short-Term Effects of Bankruptcy?

    Immediately with the bankruptcy process comes the end of incessant attacks from creditors. It can allow room to breathe for our Newtown clients. This also means your financial situations will be under close examination by a trustee. Any actions taken, such as selling assets, will require the permission of the trustee.

    What Are the Long-Term Effects of Bankruptcy?

    With the bankruptcy filing process complete, there are still some steps of the process to check off and consequences to be aware of. When you file for bankruptcy, it will be noted on your credit history. This can affect the growth and rate of your credit score moving forward, which can also affect loan application. Lenders view credit score reports, which contain this information. Bankruptcy does not prevent you from receiving a loan or even qualifying, but it can make it a bit more difficult.

    Why Romanello for Bankruptcy in Newtown, CT?

    Fill out the Form for a Free Consultation

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      4 Simple Steps to Bankruptcy in Newtown, CT:

      1. Meet With Our Experienced Bankruptcy Lawyers

      2. Determine The Plan of Action

      3. File With The Court

      4. Relinquish Your Debt

      Our services are designed with the Newtown, CT people in mind. If you are an individual or business dealing with excessive amounts of debt, our professional law attorneys are here to serve you. We offer care and attention during the entire financial situation.

      Have a Question? – 203-205-0891

      Each situation is different, facing unique circumstances and opportunities. At Romanello Law Firm, we take all of that into consideration and provide our services at reasonable and accessible levels for the people in Newtown, CT.

      We want to help you gain the fresh start you are looking for. To begin on this path, call us today!

      Bankruptcy – Newtown, CT