Filing for Chapter 7 Bankruptcy in Southbury, CT
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is often favored by individuals and happens to be the most common type of Bankruptcy in Southbury and throughout the entire state of Connecticut. When you plan on filing for Chapter 7, a bankruptcy trustee will take ahold of your assets and use them to pay off your debt with creditors. The process usually includes liquidation, which means to take certain securities or commodities and selling them off. By liquidating your assets, you will unfortunately lose some of your property and possibly end up with a lower credit score.
According to the Bankruptcy Code, some debtors will be allowed to keep “exempt” property after they get rid of other assets. If you are contemplating Chapter 7 Bankruptcy in Southbury, we would advise that you reach out to our qualified attorney’s to discuss your current situation.
To qualify for Chapter 7 Bankruptcy, there must be a business, individual or household that is living and making under the state median income. You will also need to take a bankruptcy “mean test” to understand where your current income is and if it’s too high to qualify.
How Does Chapter 7 Work
Chapter 7 cases usually begin by filing for an official petition as well as a statement including your current affairs. This process can take anywhere from four to six months. To properly finish the petition, you must file it at the nearest bankruptcy court to Southbury. You are also required to fill out an Official Bankruptcy form that has:
- 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 make sure that you have filed your Chapter 7 bankruptcy accurately, it’s important that any debtor will provide a trustee with all of the necessary documents and information for the case. By providing all of the accurate information necessary, a debtor has a better chance of being discharged for a majority of their debts.
The Chapter 7 Discharge in Southbury, CT
To successfully complete a Chapter 7 Bankruptcy, a debtor needs to be discharged with a court order near Southbury. The process of filing for bankruptcy will usually result in liquidating a majority of assets in order to pay off creditors. After the entire process has been completed, the awarded court order will qualify the debtor to be exempt from accumulated debt.