Filing For Chapter 13 In Connecticut

If you are having troubles with your debts but you do not want to give up any of your assets, the ideal option is chapter 13 bankruptcy. In Connecticut, in order for you to qualify for this type of bankruptcy, you are required to have a stable source of income that will allow you to pay your debts accordingly. Secured debt cannot exceed $1,010,650 while unsecured debt cannot go beyond $336, 900. Even though this requirement is quite stringent, many people still prefer to opt for this route not only because it does not involve asset liquidation but also because it entails shorter damage to one’s credit rating. Chapter 7 can stay in your credit rating for up to 10 years while it is only 7 years for chapter 13. Here are some useful pieces of information on filing bankruptcy in Connecticut.

Documents and Forms

Under the United States Bankruptcy Court, chapter 13 bankruptcy in Connecticut requires honest disclosure of all your assets, liabilities, income, expenses, current contacts, leases, financial statements, and the latest copies of tax returns. The forms to be filled out are available through the official website of the United States Courts. Submit your documents and paperworks to one of the bankruptcy courts in Connecticut.

Court Hearings in Connecticut

Weeks after the filing of your petition, you will be required to meet with the trustee at the courthouse. The trustee will review your repayment plan. This meeting may be participated in by your creditors. If you hired a lawyer, he/she can negotiate in your behalf a repayment plan that will be more manageable for you. After the meeting, you need to attend a confirmation hearing. At this hearing, the bankruptcy judge will decide if your plan is approved or not.

Payments should start 30 days after the court hearing. If you complete your payments, you will be able to get bankruptcy discharge, which will remove all your legal obligations on your unpaid balances. If you default on payments, your repayment plan will be dismissed.

Legal Assistance

It is advisable to get professional legal assistance from a reputable bankruptcy lawyer who specializes in the laws of bankruptcy in Connecticut. A Connecticut bankruptcy attorney will guide you through the process of filing your petition. He/she will also work on your paperworks, help you develop your repayment plan, and represent you in court. The main advantage of having a lawyer to back you up is that you will not get lost in the complexities of this process. You will be able to make sound decisions and even consider options other than bankruptcy.

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