Attorney Focusing on Chapter 7 Bankruptcy for Clients in Norwalk, Fairfield, Danbury, and New Canaan
Connecticut Bankruptcy Attorney Experienced with Liquidation
In a Chapter 7 bankruptcy, a debtor has the chance to wipe out most or all of his debts and get a fresh start. Chapter 7 is also known as liquidation bankruptcy because the bankruptcy trustee will collect all the debtor’s assets and sell or liquidate any non-exempt assets and use the net proceeds to pay off creditors.
Exemptions
Bankruptcy law allows for exemptions, or dollar amounts, of property a debtor is allowed to keep when he files for bankruptcy. Common exemptions allowed include equity in:
- A home
- Vehicles
- Jewelry
- Retirement accounts
- Pensions
- Household items
Reaffirmations
If an individual wants to keep certain secured debts, he may do so by voluntarily signing a Reaffirmation Agreement. When a debtor signs a Reaffirmation Agreement, the specified debt must be brought current, meaning that if a debtor is several months behind, he will be required to make the back payments before he can reaffirm the debt. Reaffirmed debt cannot be discharged for another six years and a debtor will be required to continue to pay on it.
Non-Dischargeable Debt
There are certain types of debt that cannot be discharged in a chapter 7 bankruptcy, including:
- Alimony
- Child support
- Fraudulent debts
- School loans
- Certain taxes
Full Disclosure
Connecticut bankruptcies are intended to treat all creditors fairly and equally, but this cannot be accomplished without full disclosure of all financial information. All creditors should be listed on the bankruptcy petition, and in the event one is omitted, the discharge issued may not apply and the debtor might be held responsible for the repayment of that debt. A discharge may be denied if the debtor conceals or destroys property or records or makes false statements concerning their financial situation.
Contact Our Norwalk Chapter 7 Bankruptcy Law Firm Today
If you are considering filing for Chapter 7 bankruptcy in Hartford, Connecticut, bankruptcy lawyer Lisa Gustafson will review your situation and help determine whether Chapter 7 bankruptcy is the right option for you. Contact our firm online, or call 203-938-0119 to set up your free initial consultation today.