With 30 years of experience handling debt relief, workers' compensation claims, estate law, product liability issues, and more, Mark O. Grater Attorney at Law in Groton, Connecticut, is here to help you navigate the bankruptcy code and the federal bankruptcy courts of Connecticut and Rhode Island.

Remember, there are two common types of personal bankruptcy filings designed to help honest debtors get relief: Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy will liquidate all of your non-exempt assets to pay off your creditors. If you have very little income and large amounts of unsecured debt (like high medical and credit card bills), bankruptcy lawyers recoomend applying for Chapter 7. 

Chapter 13 reorganizes and adjusts your debt with a repayment plan. This is often the best solution for those who have a steady income and wish to avoid home foreclosure.

How do you know if you qualify? Generally speaking, you must pass a “means test” to qualify for Chapter 7. The means test subtracts specific monthly debts from your average monthly income. If what’s left over equals less than the median family income for your state, you pass the test. If your average income is less than the median for your state before you subtract expenses, you pass automatically. 

To qualify for Chapter 13, you have to be an individual (not a business) who can show that you have the right balance between income and debt to meet your restructured repayment obligations.

Contact Mark O. Grater Attorney at Law now for advice from an expert bankruptcy lawyer. Call (860) 449-8059 today, or visit the website for more information about filing for bankruptcy.