What To Know About Filing For Bankruptcy In Connecticut?
The stress related to debt is enough to have you popping pills and trying your best not to break down in tears. There are a variety of ways to take care of your debt, each with their own set of rules and each suitable for certain types of financial situations. One of the routes you can take once you have a lot of debt is filing for bankruptcy in Connecticut ending the constant stream of phone calls from creditors looking for money. The stress involving financial problems can be eliminated and your debt dealt with by filing for bankruptcy. The first thing you must understand about bankruptcy is there are two types: reorganization and liquidation. The liquidation category consists of declaring Chapter 7 bankruptcy.
You're allowed to sell your personal belongings in order to satisfy some or all of your debt with this solution. You will be permitted to keep certain items as mandated under state laws which provides protection for certain valuables. If you declare Chapter 13 bankruptcy in Connecticut, you'll be filing for re-organizational bankruptcy. While there are several forms of reorganization bankruptcy, Chapter 13 is among the most common. As an alternative to selling off your assets, you're able to keep whatever you own and make monthly payments over the next three to five years in order for you to pay back your creditors. Chapter 7 bankruptcy usually lasts three to six months, and then any debt that remains after you've sold your property becomes unsecured debt. Any unsecured debt after that time period will be written off or wiped out.
Depending on your equity level, items you're able to sometimes keep include clothing, furnishings and any vehicle you own. If you have any secured debts, including car loans, you can either let the creditor repossess them, keep paying for the item, or give the creditor enough money to equal the actual replacement value of your secured debt. For those who do file for Chapter 7 bankruptcy, there are particular secured debts that can be removed. On the subject of Chapter 7 bankruptcy however, one thing to bear in mind is not everyone will be able to qualify. If your disposable income is enough for you to qualify for Chapter 13 bankruptcy, you won't be allowed to file for Chapter 7. Chapter 7 bankruptcy also won't do you any good if you owe tax debt, child support, or spousal support. You will need a reliable source of income to be able to file for Chapter 13 bankruptcy.
A repayment plan will have to be established that spans a three to five year period of time. The level of debt you possess, how much income you're making and the amount of money you would have paid to creditors will all be examined when determining a minimum monthly amount you will be responsible for. There are federal limits set up for Chapter 13 bankruptcy. Today, you can't have more than roughly $1,011,000 in secured debt and approximately $337,000 in unsecured debt. Before your creditors are permitted to take action against you, you will be allowed to make up any skipped payments for your secured debts. Look into filing for bankruptcy if you want to get a handle on your finances. While it may not be your first option, it can certainly prove to be one worth considering. Do your research, consider your finances and look at the amount of debt that you owe so as to make the best decision.