Are you struggling to pay debts such as medical bills, credit card balances, and utility bills? The law allows individuals who are unable to manage their debts to seek relief through bankruptcy. Individual bankruptcy proceedings are typically classified as either a Chapter 7 or a Chapter 13 filing. Below, Mark O. Grater Attorney at Law will explain how filing for Chapter 7 bankruptcy with the help of an expert bankruptcy attorney works and why it can give you a fresh financial start.
Qualifications For Chapter 7 Bankruptcy
A debtor’s income is assessed by the Connecticut Bankruptcy Means Test to confirm that it is below the state-defined median level to qualify for Chapter 7 bankruptcy. Individuals are disqualified from bankruptcy eligibility if:
- A prior petition was dismissed after the party failed to appear in court or comply with court orders
- In the last 180 days, the individual terminated a petition when creditors attempted to exercise their right to recover property
- They have failed to complete credit counseling with an approved agency as required
You will need to provide your bankruptcy attorney with a summary of your finances as follows:
- A list of all current debts and the creditors involved
- An income summary including sources, amounts, and frequency of receipt
- A list of all property and assets
- Your current monthly living expenses
- Any financed assets, such vehicles, that you seek to reaffirm and exclude from the proceeding
As you formally begin the process, collection activities will begin to taper off as creditors are made aware of your intention to file.
The Chapter 7 Discharge
A discharge releases you from personal liability on your debts and prevents creditors from conducting further collection actions against you. There are certain debts that are exempt from discharge, including:
- Alimony and child support obligations
- Recent tax debt
- Debts for most government-funded student loans
- Debts for damages and restitution after a DUI conviction
With the help of a bankruptcy attorney, you can enjoy a fresh financial start. Contact the office of Mark O. Grater Attorney at Law today at (860) 449-8059. Based in Groton, they have a 30-year track record of successfully representing those in need of debt relief under the Connecticut bankruptcy code. Visit their website for more information.