Redding, CT’s Trusted Law Firm for Bankruptcy

Filing for Chapter 7 Bankruptcy in Redding, CT

What is Chapter 7 Bankruptcy?

Names and terminology can be confusing when it comes to understanding bankruptcy, but with Chapter 7 Bankruptcy, it is designed with the individual in mind. It is the most common form on bankruptcy here in Redding, as well as across the United States. Chapter 7 Bankruptcy enables debtors to have most of their debt burdens lifted and helping them on the way to a new start. With Chapter 7 Bankruptcy, however, comes the frequent need for the liquidation of assets. This can result in a loss of property or a decreased credit score for the individual. Chapter 7 Bankruptcy is also commonly known as a “straight bankruptcy.” This relates to the manner in which assets are dealt with to make payments to the creditor. With this transaction complete, the gathered debt can then be removed. It can be hard to know when is best to apply for a Chapter 7 discharge, but our professional representatives can help you make the decision.

Certain requirements and expectations are necessary to have your Chapter 7 Bankruptcy approved by a local Redding court. To have your filing approved, you must have a small business that has gathered an excessive amount of debt or have a household capacity that is marked below the median income for the state. To see if you approve for this, you can take a “mean test” to check your household gross income. Romanello Law Firm keeps you updated on all that is required during this process.

How Does Chapter 7 Work

The Chapter 7 Bankruptcy process begins with a professional and official filing. This petition requires a schedule and statement affairs. The filing process can range from a four to six month completion time. Our Redding clients should apply at a local bankruptcy court to help the process move along. The petition process requires honesty and accurate information. There are specific documents and information that will be needed for this process. This can 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.

By being honest and transparent when working with our trustees, our Redding clients can have a smoother and simpler process when applying for bankruptcy. This can help the debt be discharged from personal liability for most debts.

The Chapter 7 Discharge in Redding, CT

The discharge is the official release for Redding applicants. The accumulated debt is dismissed when a court order is given, and the debtor is no longer expected to pay the remaining amount of debt. To reach this, during the Chapter 7 application process, certain payments and liquidation will have to occur.