Chapter 7 Bankruptcy Attorney in Middletown, Connecticut
Bankruptcy law is a powerful debt relief tool when used by a knowledgeable attorney. Filing a Chapter 7 Bankruptcy could provide the fresh financial start you need by discharging, or wiping out, almost all of your unsecured debts. The list of obligations you won’t have to pay back include credit card payments, medical bills, past-due utilities, personal loans, deficiencies on mortgages or car loans, and some taxes. Thanks to the automatic stay granted by federal bankruptcy law, you will have immediate relief from all debt collection activity the moment you file your Chapter 7 petition, which means no more harassing phone calls from your creditors or collection agencies at all hours of the day. After 90 days, you will emerge from the liquidation process debt-free. You will have your life back.
Working with a Chapter 7 Bankruptcy attorney is the best way to ensure the assets you want to keep will be protected by exemptions and that your petition is filed correctly. Attorney Jefferson Hanna could help you achieve debt relief in as little as three months if you qualify for a Chapter 7 debt relief.
Get a Fresh Financial Start
Our Middletown firm has spent the last 30 years helping people out of debt. We understand that you have been through the pressure of creditor phone harassment, excessive interest rates, and late fees. Some of you have been served with lawsuits, wage or bank garnishments. We also know that you would pay off your debt if only you could and that bankruptcy seems scary and awful. But we also know that bankruptcy isn’t what you think it is. Upon the filing of a Chapter 7 Bankruptcy petition, you will have immediate relief. The harassment will stop that day. You will come out of Chapter 7 Bankruptcy in 90 days, essentially debt-free. The pressure will be gone along with the creditor and collection calls. You will have your life back. (Read some of our testimonials).
Here Is What a Chapter 7 Bankruptcy Filing Can Do for You:
Chapter 7 Bankruptcy gives individuals, married couples, and businesses a fresh start. A Chapter 7 Bankruptcy wipes out almost all unsecured debts. Debts that can be forgiven include:
- Credit card debt
- Medical bills
- Unsecured loans (not secured by collateral)
- Collection accounts
- Civil judgments
- Back rent
- Overdue utilities (shutoffs can be stopped The back bill will be forgiven and the utility company is obligated to continue your service.)
- Payday loans
- Certain Federal, State, and Local Taxes, interest, and penalties.
- Deficiency judgments from foreclosure
Note: Child Support and Alimony cannot be forgiven. Student loans cannot be discharged unless substantial hardship is proven.
Most People Can Keep All of Their Property
Under Chapter 7 Bankruptcy, most people are able to retain all of their property:
- furniture, and
- retirement accounts (Pension, IRA, 401-K).
In the State of Connecticut, when filing a Chapter 7 Bankruptcy, the homestead exemption will protect up to $75,000 in home equity in your primary residence—more if you’re married and filing a joint bankruptcy. If creditors are collecting on a judgment that stems from hospital services, the amount increases to $125,000 of exempted equity.
The homestead exemption helps homeowners, who do not have substantial equity in their home, retain it. How it works…If you own a home that is valued at $350,000 and you owe $300,000 on your mortgage, the equity in your home equals $50,000. Using $50,000 of the $75,000 exemption allows you to protect your home from being sold to cover your debts.
Additional Connecticut exemptions, under Chapter 7 Bankruptcy law, allow you to protect your personal property.
Motor Vehicle. Allows you to keep up to $3,500 in equity in your vehicle.
Personal Property. Allows you to keep necessary appliances, housewares, furniture, and health aids, as well as burial plots, wedding and engagement rings, and firearms.
Money Benefits. Protects monetary benefits, such as child or spousal support, health and disability insurance payments, pensions, public assistance, unemployment and workers’ compensation, and Social Security benefits.
Tools of the Trade. Covers necessary tools, books, and farm animals needed to continue in your line of work.
Wildcard. Allows you to safeguard up to an additional $1,000 in nonexempt property.
When filing a Chapter 7 Bankruptcy in Connecticut, you must choose between the state’s exemptions and the federal exemptions. In working with our Chapter 7 Bankruptcy Attorney, you can discuss which option is best for your unique case.
Wage and Bank Account Attachments Stopped
A wage or bank account attachment, also known as garnishment, occurs when a financial judgment has been made against you. This attachment process allows for an authorized agency to deduct money directly from your paycheck or bank account to apply toward your outstanding debts.
Filing bankruptcy under Chapter 7 (or Chapter 13) will stop all wage attachments. It will also prevent creditors from attaching your bank accounts or other property, meaning it will prevent them from enforcing judgments that have already been made against you.
Qualifying for Chapter 7 Bankruptcy in Connecticut
To qualify for a Chapter 7 Bankruptcy, you must either earn less than the state median income for a household of your size or pass the Connecticut means test. Exemptions from the means test exist if your debts are not primarily consumer debts or for disabled veterans who incurred most debt while serving on active or other homeland defense duty.
Connecticut Median Income
If your current average monthly income is less than the median income of a household of the same size, then you are eligible to file a Chapter 7 Bankruptcy. To determine this, sum your monthly income for the last six months, then divide by six. This is your average monthly income. Now multiply that average income by 12 to calculate your average annual income.
Income numbers are generally updated on November 1st each year by the United States Department of Justice. Due to complications with data collection related to the pandemic, median income limits will be updated in Spring 2022. The current median incomes for Connecticut households, as of May 15, 2021, are:
- 1 Person = $69,244
- 2 People = $ 90,286
- 3 People = $103,544
- 4 People = $130,975
Connecticut Means Test
Chapter 7 law was written to prevent the wealthy from racking up debts, then having them wiped clean. High-income filers can alternatively use Chapter 13 Bankruptcy to repay a percentage of their debts. However, if you earn more than the median income for a household of the same size, you may still qualify for a Chapter 7 Bankruptcy.
To determine your eligibility, you will need to complete the Connecticut means test. The means test uses a formula to determine your monthly disposable income, taking into consideration your monthly income and necessary expenses. The lower your disposable income, the better chance you may qualify for a Chapter 7 Bankruptcy.
Experienced Chapter 7 Bankruptcy law firms can review the qualifications for Chapter 7 and Chapter 13 with you, as they pertain to specific debt solution needs.
Creditor Calls Stopped Immediately
Upon the filing of a bankruptcy petition, the bankruptcy court will send a letter to your creditors, informing them that you have filed bankruptcy. After a bankruptcy petition is filed, creditors may not call you, send you letters, or take any action to collect money from you or seize your property.
This stay will not prevent a Chapter 7 lawsuit associated with debt incurred through acts of fraud or related to personal injury settlements, child custody, spousal support, or debt taken on after filing. These types of debts are not dischargeable in bankruptcy cases.
Experienced Chapter 7 Bankruptcy Attorney
This overview is general in nature and not a substitute for a consultation with an experienced bankruptcy attorney who can analyze your particular situation in detail and explain how a Chapter 7 Bankruptcy filing will affect your unique situation.
A word about Chapter 7 from our attorney, Jefferson Hanna: “In my experience, Chapter 7 Bankruptcy is the single most effective tool I have to help people deeply in debt. Unfortunately, in some circles, it has gotten a bad rap. Well-meaning friends and relatives may tell you that bankruptcy should be your last option. Internet scammers will tell you they can negotiate debt away. (Most often, this doesn’t work.) All of this is terrible advice. Chapter 7 Bankruptcy can relieve not only the debt but the stress and worry that goes with it.”
Credit problems may seem unending. With each passing day, you find yourself unsure of how you will get out.
GET HELP NOW! CALL US TODAY at our office in Middletown, Connecticut, for an INITIAL APPOINTMENT or email our firm using the form below. We are proud to represent clients in the surrounding areas of Hartford, New Britain, New Haven, Meriden, and throughout Connecticut.
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