Shelton, CT’s Trusted Law Firm for Bankruptcy
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Shelton Bankruptcy Attorneys for:
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Chapter 7 Bankruptcy
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Chapter 11 Bankruptcy
In the United States, many Americans face the challenge of unmanageable debt. The good news is that you aren’t alone in this process, and you’ll have options. Here at Romanello law Firm, one of our experienced bankruptcy attorneys can assist you in your time of need.
Filing for bankruptcy is usually the last straw, and no one is ever prepared for it. By declaring bankruptcy, you’re allowing you and your family to start over.
Experienced Bankruptcy Lawyers
With over 20 years of experience under our belt, Romanello Law Firm can extend our legal advice and representation to those living in Shelton as well as Connecticut and New York.
When we begin working with you, we’ll start out by looking at what you truly need and how we can assist you. We’ll tailor a plan to your needs and provide you with the right kind of legal representation for your situation.
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.
Filing for Chapter 11 Bankruptcy in Shelton, CT
What is Chapter 11 Bankruptcy?
The purpose of filing a Chapter 11 Bankruptcy is to mainly rearrange your Shelton business. This form of bankruptcy was created to help large businesses who are facing immense debt to restructure their business. Once approved by the court, the debtor can begin to switch around their operations and create an entire plan of how they will pay off debt and dismiss others.
Filing for a Chapter 11 is most common for larger companies that want to avoid liquidation but can afford to reorganize to cease heavy debt accumulation. It’s not normally common for individuals or small companies to file for a Chapter 11, but it can be done in special situations.
How Does Chapter 11 Work?
Chapter 11 Bankruptcy cases are run similarly to Chapter 7. A business will begin by filing a petition with the closest Bankruptcy court in Shelton or the surrounding area. If the petition happens to be voluntary, a debtor can fill it out. On the other hand, if it’s involuntary, then it should be filled out by a creditor. A debtor must also complete a disclosure statement with complete and accurate information about their current financial affairs. This information can be:
- 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
To complete a Chapter 11 Bankruptcy, the debtor in question must all propose a plan that will help get rid of any unnecessary costs to the company as well as alternative sources for revenue.
Confirming the Plans for Chapter 11
To successfully complete a Chapter 11 Bankruptcy, a Shelton business must have their plan accepted. This plan will have numerous requirements, but to give you an idea, here’s what it should include:
- Feasible: For any plan to be accepted, it must be feasible or succeed. Will the debtor be able to achieve this plan and all in due time? The plan must include the debtor covering the expenses and paying off debt to creditors.
- Best Interest of the Creditors: Does the proposed plan include paying off creditors in the same way that they would receive an amount in a Chapter 7 Bankruptcy? In certain situations, debtors must pay creditors in full and this must be laid out in the plan.
Once the plan has been accepted by the Bankruptcy court closest to Shelton, the debtor will be free to reorganize their personal or business finances.
Bankruptcy FAQs
How Do Chapter 7 and Chapter 11 differ?
When it comes down to it, Chapter 7 happens to be the most recurring and common form of Bankruptcy in Shelton. In this instance, the debtor must pay off (liquidate) personal assets to repay debt. In Chapter 11, corporations or business owners must restructure their business to help make debt payments easier but to avoid an entire liquidation of the company.
How Can Filing For Bankruptcy Help With Creditors?
As soon as you file for bankruptcy in Shelton, you’ll be protected from any hounding creditors or bill collections. An automatic injunction called the “Automatic Stay” will be put into place and help keep creditors at bay and away from your property. This means that creditors won’t be able to repossess your property and you won’t have to foreclose on your home or company.
What Are the Short-Term Effects of Bankruptcy?
For the most part and almost immediately, creditors won’t be bothering you day after day to repay your debt. During this time, you’ll also need a bankruptcy trustee to look at all of your financial dealings and if you have their permission to sell assets while paying off your debt.
What Are the Long-Term Effects of Bankruptcy?
Once you have filed your bankruptcy in Shelton and finished the entire process, your problems aren’t over. Unfortunately, bankruptcy will show up on your credit history and can affect you from gaining credit in the future. Credit is usually used lenders to help you qualify for certain loans. By declaring bankruptcy, you aren’t giving up everything and you aren’t giving up your opportunity to borrow money. It’s only in the beginning that you will have a harder time trying to get a loan without a good interest rate.
Why Romanello for Bankruptcy in Shelton, CT?
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4 Simple Steps to Bankruptcy in Shelton, CT:
1. Meet With Our Experienced Bankruptcy Lawyers
2. Determine The Plan of Action
3. File With The Court
4. Relinquish Your Debt
If you are currently struggling with debt, know that there are ways to improve your situation. It all starts with finding a qualified bankruptcy lawyer in Shelton to take your case. Here at Romanello Law Firm, we take a personal approach to all of our cases. We would recommend that you receive help for your situation, because if you don’t, you’ll face long-term financial and legal consequences.
Have a Question? – 203-205-0891
When you think of proactive and personal legal representation in the Shelton area, you should think about Romanello Law Firm. We are known for providing accessible and responsive help to all of our clients.
It may feel like there is no way out of your debt, but there is. By seeking legal representation today, you’ll be even closer to freeing not only yourself but your family or business from serious consequences.