Chapter 7 Bankruptcy Lawyer in Hartford, CT
At The Law Offices of Neil Crane, a chapter 7 bankruptcy lawyer Hartford, CT community members depend on has experience helping people work through financial hardships. For some, filing for bankruptcy can be a resource for them to work towards a more secure financial future. Chapter 7 is the most popular type of personal bankruptcy for many reasons, including the following:
- It costs less than other types of bankruptcy.
- It takes less time to complete, usually 2-4 months.
- It discharges virtually all of your consumer debt, such as your credit card debts.
Consequently, if most of the debt you find yourself unable to pay represents high-balance credit card accounts you’ve maxed out, Chapter 7 may be the answer you’re looking for to get you out of debt and give you a new financial start.
You must, however, qualify to file Chapter 7 bankruptcy. Even though bankruptcy is a federal procedure, each state has its own rules for how you qualify. These “means” tests look at your net household income for the six months prior to your bankruptcy filing date. If that income falls below your state’s median income amount for a household of your size, you qualify.
Keep in mind that you need not be penniless or truly impoverished in order to pass your state’s means test. In fact, you can have a relatively high gross monthly income if you have correspondingly high, but nevertheless reasonable, monthly expenses, such as for your mortgage, car payment(s), taxes, etc.
As your CT chapter 7 bankruptcy lawyer in Hartford will tell you, neither Chapter 7 nor any other type of bankruptcy will discharge all your debts. Some debts, including the following, are nondischargeable:
- Back taxes
- Student loan balances
- Child support obligations
- Spousal support (alimony) obligations
- Attorney’s fees incurred in a divorce or separation
- Court-imposed fines, penalties and restitution amounts
- Judgments for personal injuries you caused while under the influence of drugs or alcohol
- Debts you fail to list on your bankruptcy petition
- Debts you reaffirm after filing bankruptcy
If your main objective for filing bankruptcy is to save your home from foreclosure, Chapter 7 may not be your best option. A Chapter 7 bankruptcy stops foreclosure proceedings in their tracks, but doesn’t necessarily eliminate them. Your mortgage lender may reinstate foreclosure proceedings once your Chapter 7 automatic stay expires. You likely will be better off filing Chapter 13 bankruptcy instead. Your bankruptcy lawyer can help you decide.
While it’s true that Chapter 7 bankruptcy provides you with a new financial start, it also, as you might expect, ruins your credit, at least in the short term. A Chapter 7 bankruptcy stays on your credit reports for 10 years. During this period, you likely will find it difficult to obtain new credit cards, especially those with a high line of credit or a low interest rate. To learn more, call a Hartford chapter 7 bankruptcy lawyer Hartford in CT from The Law Offices of Neil Crane today.