Woodbury, CT’s Trusted Law Firm for Bankruptcy
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Woodbury Bankruptcy Attorneys for:
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Chapter 7 Bankruptcy
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Chapter 11 Bankruptcy
Unmanageable debt affects many people across Woodbury and all of America. When you are facing financial crisis you don’t need to face it alone. Romanello Law Firm can help you get back on your feet and help people of Woodbury navigate the complexities of the bankruptcy process.
Experienced Bankruptcy Lawyers
Romanello Law Firm has been servicing the people of Woodbury for almost two decades. It is our priority to give out clients accessible representation and dependable legal advice.
If you want a committed, professional staff to represent you in your legal needs then choose Romanello Law Firm. . We make customize your legal representation to your specific needs. Call us to begin your process with expert legal service today.
Filing for Chapter 7 Bankruptcy in Woodbury, CT
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also called “straight” or “liquidation” bankruptcy, is the most common type of bankruptcy filed in Woodbury and across the United States. When you file for Chapter 7 most of the filers debts will be wiped out by the court. To qualify for Chapter 7 bankruptcy the debtor must owe a substantial amount of money and pass a “mean test”.
The mean test will identify the level of household gross income and help determine if a Chapter 7 bankruptcy is the right option. Liquidation of most assets is required of the debtor. The process of determining what is the best option for you and navigating the system is complex which is why we recommend our Woodbury clients discuss their needs with one of our professional bankruptcy attorneys.
How Does Chapter 7 Work
Once the decision has been made to file for Chapter 7 bankruptcy the debtor will then need to fill out an official petition followed by a schedules and a statement of affairs. The petition will need to be filled out in a court servicing the Woodbury area as well as the Official Bankruptcy Form. The form will require information such as:
- 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.
The process can take several months to complete. For a smoother process, it is necessary to cooperate with the trustee and attorneys and provide all the required documents and information. In return, debtors will be released of most personal debts.
The Chapter 7 Discharge in Woodbury, CT
When the process has been completed the debtor will receive a discharge by court order. This order means that the debtor is no longer responsible for the debts they have been relieved of. Before being relieved of these debts, the debtor will have to liquidate their assets and pay off creditors.
Filing for Chapter 11 Bankruptcy in Woodbury, CT
What is Chapter 11 Bankruptcy?
Every client has unique needs. In some cases, Chapter 11 bankruptcy is chosen over Chapter 7. Chapter 11 is more commonly used by corporations who have acquired large amounts of debt and are in need of restructuring. With a Chapter 11 bankruptcy the debtor is not required to liquidate all it’s assets and is still able to operate the business. The restructuring is designed to create a stronger business that is capable of repaying creditors. Once the court approves the filing, the company can resume their operations. This should allow for the repayment of some debts, while others may be dismissed.
Chapter 11 bankruptcy is most common for larger companies in the Woodbury area however, in some cases it may still be utilized by smaller companies and even individuals in need of filing for bankruptcy.
How Does Chapter 11 Work?
Once it has been determined to file for Chapter 11 bankruptcy a petition must be filled out to start the process. Petitions can be acquired at a bankruptcy court serving the Woodbury area. Chapter 11 bankruptcies may be filed voluntarily by the debtor or involuntarily by the creditor. A disclosure statement must also be filed with information regarding finances. The information requested will include:
- History of debt
- Collection of assets and liabilities
- Documents proving current income and expenditures
- A full list of executory contracts or unexpired leases
- Statement including current financial affairs
It is essential that the debtor has a plan to reorganize and create better cash flow in order to repay creditors. Chapter 11 offers the debtor this ability to restructure while the creditors stand by and wait.
Confirming the Plans for Chapter 11
After careful planning and restructuring, your Woodbury business will need to have approval of their plan to reorganize. Some things to consider in creating this plan are:
- Feasible: Careful consideration of potential success of the plan is necessary. Are the benchmarks in this plan feasible?
- Best Interest of the Creditors: Making good on loans must be the first priority in the restructuring plan. The creditors should be paid similar amounts as in a liquidation bankruptcy.
Once the Woodbury area court accepts the Chapter 11 plan, the debtor is then allowed to begin restructuring their finances and putting their plan in place.
Bankruptcy FAQs
How Do Chapter 7 and Chapter 11 differ?
There are many different reasons for needing to file for bankruptcy. Chapter 11 offers a solution for people and businesses that want to hold onto their assets or their business and can institute a feasible plan to restructure and pay off creditors. The Chapter 7 process is designed to help individuals to businesses start fresh. Chapter 7 requires that the debtor liquidate most assets before most debts are removed. Chapter 7 is more common for individuals while Chapter 11 is commonly used by larger corporations that want to maintain control over operations.
How Can Filing For Bankruptcy Help With Creditors?
Romanello Law Firm can help to protect our Woodbury clients when they file for bankruptcy. The moment a petition is filed a collection efforts hault. This is because filing a petition triggers and automatic injunction called the Automatic Stay. The Automatic Stay prohibits creditors from taking action on your unpaid debt.
What Are the Short-Term Effects of Bankruptcy?
While creditors cease their actions to reclaim debt a trustee is now involved with your finances. The trustee will examine all financial changes and you will be require the trustee’s permission before selling any assets. This is to ensure that the proper debts are being repaid.
What Are the Long-Term Effects of Bankruptcy?
A bankruptcy may stay on the credit report for up to 10 years. This will impact the ability of the filer to apply for loans making it more difficult to borrow money. It would also be difficult to borrow money with a high debt ratio. The bankruptcy will not make it impossible to secure a loan but it will be more difficult until credit scores begin to climb.
Why Romanello for Bankruptcy in Woodbury, CT?
Fill out the Form for a Free Consultation
4 Simple Steps to Bankruptcy in Woodbury, CT:
1. Meet With Our Experienced Bankruptcy Lawyers
2. Determine The Plan of Action
3. File With The Court
4. Relinquish Your Debt
Serving Woodbury residents and businesses, Romanello Law Firm offers years of experience and professional, attentive attorneys. If you have unmanageable debt that you are struggling to repay, we have attorneys to help you navigate the complexities of the bankruptcy process. It is important that you choose the right option for you and supply the proper information for the process to run smoothly. We can provide you with professional services.
Have a Question? – 203-408-2207
Your case is unique to you and we handle each case with sensitivity and professional expertise. Our services will be tailored to you, our Woodbury clients. We draw on years of experience and knowledge that will serve you well on your path to financial security. Every case will receive the attention it deserves.
You deserve a fresh start and we can help get it for you.