Filing for Chapter 7 Bankruptcy in Shelton, CT
What is Chapter 7 Bankruptcy?
The most common type of Bankruptcy in the Shelton area happens to be Chapter 7 as well as throughout the State. When you file for Chapter 7, a bankruptcy trustee will take a debtor’s assets and use them to pay off creditors to get rid of mass debt. By liquidating assets, the debtor will unfortunately lose some of their property and receive a lower credit score. According to the Bankruptcy Code, the debtor is allowed to keep “exempt” property, and after they relinquish their assets, they will be free of accumulated debt. If you are seeking Chapter 7 Bankruptcy in Shelton, we’d advise you to reach out to one of our attorney’s to discuss the matter in further details.
In order for an individual to qualify for Chapter 7 Bankruptcy, you must have a business with debt or a household that is below the state median income. You are also required to take the bankruptcy “mean test” to figure out if your income is too high to qualify.
How Does Chapter 7 Work
A Chapter 7 case begins with an official petition, schedule and statement affair. The entire process can take anywhere from four to six months until completion. In order to properly file for a petition, debtors must file at the nearest court to Shelton as well as filling out an Official Bankruptcy form that includes:
- An entire list of all creditors and the nature of their claims
- Source, amount and frequency of debtor’s income
- An entire list of all the debtor’s property
- A detailed list of the debtor’s monthly living expenses, food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
To properly file a Chapter 7, it’s important for a debtor to cooperate with a trustee and give them all of the needed documents and information. By following all of the requirements and successfully filing, a debtor will be discharged from all personal liability for a majority of their debts.
The Chapter 7 Discharge in Shelton, CT
To fully complete a Chapter 7 Bankruptcy, a debtor must be discharged with a court order. During the process of filing for bankruptcy, the individual will most likely liquidate most of their assets and pay off their creditors. Once this is completed, the court order will qualifies that the debtor is free from accumulated debt and doesn’t need to pay off the remaining debt.