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Bankruptcy in Connecticut

 

Who Can File Bankruptcy in Connecticut?

In order to qualify for bankruptcy relief in Connecticut, you will need to meet the following standards.

  • You must not have filed for Chapter 7 or Chapter 13 bankruptcy in any court in the last 6 years
  • You must have been a resident of Connecticut for a minimum of one year
  • You must participate in an approved credit counseling course
  • You must be willing to honestly disclose all of your debts and assets

What Do I Need To Know Before Filing For Bankruptcy in Connecticut?

In 2005 the federal government passed into law bankruptcy reform legislation known as the bankruptcy abuse prevention and consumer protection act.  The purpose of this reform was to put an end to the abuse of bankruptcy proceedings by higher income debtors.  As a part of this reform, each person who files for bankruptcy will now undergo what is known as a means test.  A means test will determine whether you will be eligible to file for Chapter 7 bankruptcy or if you will be required to file Chapter 13 bankruptcy instead.  This is done by comparing your income from the previous year to the average income in your state.  People who’s income is above average will be required to file for Chapter 13 bankruptcy.

What Type of Debts Can Be Discharged As Part of a Bankruptcy Proceeding in Connecticut?

There are two basic types of debts.  The first is known as secured debt.  Secured debt is any debt which is secured by an asset or piece of property.  Some examples of a secured debt are a mortgage or car loan.  These debts can not be discharged as part of your bankruptcy proceedings.  The second type of debt is known as an unsecured debt.  Unsecured debts are not directly tied to any particular asset.  Some examples of unsecured debts are medical bills and credit card debts.  These debts can be discharged as part of a Chapter 7 bankruptcy proceeding.

Will I lose my house and car if I file for bankruptcy in Connecticut?

The law allows you to have a certain amount of exempt assets when undergoing a bankruptcy proceeding.  As long as your house and vehicle do not exceed the legal limits for exemption, you will not lose these items as part of your bankruptcy case.  If these items do exceed the legal limits for exemption, you may be required to downsize to a less expensive home or car.

Do I really need to hire an Connecticut bankruptcy attorney to represent me?

While there is no law which states that you have to hire a Connecticut bankruptcy attorney, it is strongly advised that you do.  With the complex structure of the bankruptcy system, it can be quite difficult to become confused when attempting to represent yourself in a bankruptcy case.  Consulting a bankruptcy attorney will maximize your chances of a successful outcome in your case.

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