Filing for Chapter 7 Bankruptcy in Ridgefield, CT
What is Chapter 7 Bankruptcy?
This kind of bankruptcy was created to serve the needs and interests of the individual. If you have accumulated a large amount of debt, then a Chapter 7 Bankruptcy may be the best decision for you. It is the most commonly filed bankruptcy petition here in Ridgefield, as well as across most of the United States. A Chapter 7 Bankruptcy can help debtors be free of their heavy financial burdens and pave the way for them to begin again with a fresh start. To make some of the debt payments and have the rest lifted, the process usually involves liquidation of assets. Liquidation, unfortunately, can result in a loss of property or have a negative impact on your credit history. Also recognized or referred to as a “straight bankruptcy,” Chapter 7 Bankruptcy deals directly with the creditor and payment methods. When a Chapter 7 Bankruptcy petition is approved, burdening debt is then lifted for the individual. You may have questions or concerns about filing for a Chapter 7 Bankruptcy, but Romanello Law Firm helps all of our Ridgefield clients with timing and making the decision.
A Chapter 7 Bankruptcy must be approved by a local bankruptcy court here in Ridgefield. To receive approval, certain requirements are expected. The filing individual must either have a small business with large amounts of debt or have a household size that is underneath the median income for the state of Connecticut. A “mean test” can help you know if you qualify by determining your gross household income.
How Does Chapter 7 Work
To begin the process of a Chapter 7 Bankruptcy, you must apply with an official petition to a local Ridgefield bankruptcy court. This includes a schedule and statement of affairs. The timing of the application process can vary, but it typically takes around four to six months. Certain documents and information will be required when filing for a Chapter 7 Bankruptcy. This information usually includes:
- 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 bankruptcy filing process requires precise information, so we encourage all of our Ridgefield clients to be honest with our Romanello Law Firm attorneys. Accurate documentation is necessary for a smooth and simple petitioning process.
The Chapter 7 Discharge in Ridgefield, CT
Once the petition has been completed and submitted, the local Ridgefield court will then approve the filing. With the petition approved, a debt discharge is given to the applicant, and the debtor is no longer required nor expected to pay the remaining debt. Liquidation may need to previously occur to reach this stage.