Affordable Winchester CT Bankruptcy Lawyer

[google-map location=”Winchester CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Winchester CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Winchester CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Winchester CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Winchester CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Winchester CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Winchester CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Winchester CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Winchester CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Winchester CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an insurmountable financial trouble considering that you have actually shed your task, or someone fell ill, or you got a divorce, or for generally whatever factor, the bankruptcy regulations already existing that can help folks out when they get in to a hard economic place. There is a notion around that makes people assume they are too good for bankruptcy and also they will certainly attempt everything else to pay those bills without having to file for bankruptcy. The trouble with that said is in most situations, individuals will have gone through their retirement savings, the equity in their homes, and also other assets that can have been protected had those individuals aimed for defense under the bankruptcy code. It is not a scandalous point to declare bankruptcy. No one intends to apply for bankruptcy, yet in some cases scenarios past our control make is necessary for us to do so. Do not wait till you are down to your last penny. Take action and figure out what you could with the help of a great bankruptcy lawyer, like myself. I expect conference you.

More Winchester CT Information:

[weather city=”Winchester” state=”Connecticut”]

Affordable Westbrook CT Bankruptcy Lawyer

[google-map location=”Westbrook CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Westbrook CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Westbrook CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Westbrook CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Westbrook CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Westbrook CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Westbrook CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Westbrook CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Westbrook CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Westbrook CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an impossible financial burden since you’ve shed your job, or someone fell ill, or you got a separation, or for generally whatever reason, the bankruptcy legislation exist that can help folks out when they enter to a challenging economic area. There is a concept out there that makes individuals assume they are also good for bankruptcy and they will certainly attempt everything else to pay those bills without having to declare bankruptcy. The issue with that said is in a lot of situations, folks will certainly have looked at their retirement savings, the equity in their residences, and also other properties that can have been maintained had those folks aimed for security under the bankruptcy code. It is not a scandalous thing to declare bankruptcy. No one wishes to file for bankruptcy, but in some cases conditions beyond our control make is required for us to do so. Don’t wait till you are to your last dime. Take action and also discover just what you can with the help of a good bankruptcy attorney, like myself. I anticipate meeting you.

More Westbrook CT Information:

[weather city=”Westbrook” state=”Connecticut”]

Affordable Waterford CT Bankruptcy Attorney

[google-map location=”Waterford CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Waterford CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Waterford CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Waterford CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Waterford CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Waterford CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Waterford CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Waterford CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Waterford CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Waterford CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are confronted with an impossible financial burden since you have actually lost your task, or a person fell ill, or you got a separation, or for basically whatever factor, the bankruptcy legislation already existing that can help folks out when they get in to a difficult monetary place. There is an idea available that makes people believe they are as well great for bankruptcy as well as they will attempt everything else to pay those costs without needing to file for bankruptcy. The issue keeping that is in the majority of cases, folks will certainly have gone through their retired life savings, the equity in their houses, and other assets that can have been preserved had those individuals aimed for security under the bankruptcy code. It is not a scandalous thing to declare bankruptcy. No one wishes to file for bankruptcy, yet often situations beyond our command make is required for us to do so. Don’t wait till you are to your last penny. Act as well as discover exactly what you could with the help of a good bankruptcy attorney, like myself. I look forward to conference you.

More Waterford CT Information:

[weather city=”Waterford” state=”Connecticut”]

Affordable Wallingford CT Bankruptcy Lawyer

[google-map location=”Wallingford CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Wallingford CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Wallingford CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Wallingford CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Wallingford CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Wallingford CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Wallingford CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Wallingford CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Wallingford CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Wallingford CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are confronted with an overwhelming monetary burden because you’ve lost your work, or somebody fell ill, or you acquired a separation, or for essentially whatever reason, the bankruptcy regulations exist to assist people out when they get in to a tough financial place. There is a notion around that makes folks think they are as well helpful for bankruptcy as well as they will certainly try every little thing else to pay those costs without needing to apply for bankruptcy. The trouble with that is in the majority of cases, people will certainly have gone through their retired life cost savings, the equity in their homes, and also various other possessions that can have been protected had those people sought defense under the bankruptcy code. It is not a shameful point to file for bankruptcy. No one intends to declare bankruptcy, but occasionally circumstances past our control make is essential for us to do so. Do not wait until you are to your last penny. Act as well as learn exactly what you could with the help of a great bankruptcy attorney, like myself. I expect conference you.

More Wallingford CT Information:

[weather city=”Wallingford” state=”Connecticut”]

Affordable Stonington CT Bankruptcy Lawyer

[google-map location=”Stonington CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Stonington CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Stonington CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Stonington CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Stonington CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Stonington CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Stonington CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Stonington CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Stonington CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Stonington CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are confronted with an impossible monetary problem since you have actually lost your task, or a person fell ill, or you obtained a divorce, or for generally whatever factor, the bankruptcy regulations already existing that can help folks out when they enter to a tough financial area. There is a notion available that makes individuals think they are also good for bankruptcy and also they will certainly try everything else to pay those costs without having to file for bankruptcy. The problem with that said is in a lot of instances, people will have gone through their retired life cost savings, the equity in their homes, and also various other assets that can have been preserved had those people aimed for security under the bankruptcy code. It is not a scandalous point to declare bankruptcy. No one intends to declare bankruptcy, yet occasionally circumstances past our control make is essential for us to do so. Do not wait up until you are to your last penny. Do something about it and also discover just what you could with the help of a good bankruptcy attorney, like myself. I expect conference you.

More Stonington CT Information:

[weather city=”Stonington” state=”Connecticut”]

Affordable Simsbury CT Bankruptcy Lawyer

[google-map location=”Simsbury CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Simsbury CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Simsbury CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Simsbury CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Simsbury CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Simsbury CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Simsbury CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Simsbury CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Simsbury CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Simsbury CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an overwhelming financial worry due to the fact that you have actually lost your task, or somebody fell ill, or you obtained a divorce, or for generally whatever factor, the bankruptcy laws exist to assist folks out when they get in to a tough financial spot. There is an idea around that makes people think they are also great for bankruptcy as well as they will certainly attempt everything else to pay those bills without having to declare bankruptcy. The trouble with that is in most cases, folks will have looked at their retirement cost savings, the equity in their residences, as well as various other possessions that might have been maintained had those folks sought protection under the bankruptcy code. It is not a disgraceful point to declare bankruptcy. Nobody wants to file for bankruptcy, however occasionally scenarios beyond our command make is required for us to do so. Don’t wait until you are to your last penny. Take action as well as learn what you could with the help of a good bankruptcy attorney, like myself. I anticipate meeting you.

More Simsbury CT Information:

[weather city=”Simsbury” state=”Connecticut”]

Affordable Portland CT Bankruptcy Lawyer

[google-map location=”Portland CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Portland CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Portland CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Portland CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Portland CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Portland CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Portland CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Portland CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Portland CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Portland CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are confronted with an overwhelming financial worry considering that you’ve shed your job, or a person fell ill, or you got a separation, or for generally whatever reason, the bankruptcy regulations already existing to help people out when they enter to a difficult monetary area. There is a concept around that makes folks believe they are too great for bankruptcy as well as they will attempt everything else to pay those bills without needing to declare bankruptcy. The problem with that said is in the majority of situations, individuals will have gone through their retired life cost savings, the equity in their houses, as well as other possessions that can have been preserved had those folks sought security under the bankruptcy code. It is not a scandalous thing to file for bankruptcy. Nobody wishes to declare bankruptcy, however occasionally scenarios beyond our command make is essential for us to do so. Don’t wait till you are down to your last dime. Do something about it as well as find out exactly what you could with the help of an excellent bankruptcy lawyer, like myself. I expect meeting you.

More Portland CT Information:

[weather city=”Portland” state=”Connecticut”]

Affordable Newtown CT Bankruptcy Attorney

[google-map location=”Newtown CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Newtown CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Newtown CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Newtown CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Newtown CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Newtown CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Newtown CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Newtown CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Newtown CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Newtown CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an overwhelming economic problem due to the fact that you’ve lost your job, or a person fell ill, or you obtained a separation, or for basically whatever factor, the bankruptcy laws already existing that can help people out when they get in to a tough financial spot. There is a notion out there that makes individuals believe they are also helpful for bankruptcy and also they will certainly try every little thing else to pay those costs without having to apply for bankruptcy. The issue with that said is in a lot of cases, people will certainly have looked at their retired life savings, the equity in their houses, and also other assets that could possibly have been preserved had those individuals looked for security under the bankruptcy code. It is not a disgraceful thing to apply for bankruptcy. No one would like to file for bankruptcy, however in some cases scenarios beyond our command make is essential for us to do so. Don’t wait till you are down to your last dime. Act and find out what you could with the help of a good bankruptcy attorney, like myself. I expect conference you.

More Newtown CT Information:

[weather city=”Newtown” state=”Connecticut”]

Affordable Mansfield CT Bankruptcy Attorney

[google-map location=”Mansfield CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Mansfield CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Mansfield CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Mansfield CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Mansfield CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Mansfield CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Mansfield CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Mansfield CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Mansfield CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Mansfield CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an insurmountable financial problem because you have actually shed your task, or someone fell ill, or you acquired a separation, or for generally whatever factor, the bankruptcy laws already existing to help people out when they enter to a hard financial area. There is an idea out there that makes people think they are as well good for bankruptcy as well as they will certainly attempt every little thing else to pay those costs without needing to file for bankruptcy. The issue with that is in most instances, people will certainly have gone through their retired life cost savings, the equity in their houses, as well as other properties that could possibly have been preserved had those folks sought protection under the bankruptcy code. It is not a shameful point to declare bankruptcy. No one would like to file for bankruptcy, but in some cases circumstances past our command make is necessary for us to do so. Don’t wait till you are down to your last dime. Take action and also figure out what you could with the help of an excellent bankruptcy lawyer, like myself. I expect conference you.

More Mansfield CT Information:

[weather city=”Mansfield” state=”Connecticut”]

Affordable Manchester CT Bankruptcy Attorney

[google-map location=”Manchester CT”]Congratulations!  You’ve found one of the most Affordable, Experienced, and Local Chapter 7 Bankruptcy Lawyers that serves Manchester CT and can give you the fresh financial start that you desire!  If you need a Chapter 7 Bankruptcy Petition filed on your behalf, I will make sure that your Bankruptcy case moves quickly and successfully through the very complex Connecticut bankruptcy laws.  You will be shocked at how low the cost is to get rid of so much debt when utilizing my Chapter 7 Bankruptcy legal services.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

I’ve compiled a fairly long list of chapter 7 bankruptcy questions and answers that seem to be the most common among Manchester CT people who are interested in filing for chapter 7 bankruptcy.  The answers given are meant to be informational as every bankruptcy case is different and every bankruptcy case has it’s own set of facts and circumstances.  So look at the answers as a general guide and of course, when we provide you with a free over-the-phone bankruptcy consultation.  We can give you more concrete answers as they apply to your situation in Manchester CT, and most importantly whether you should be filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case.  I can tell you from experience that 99% of the cases turn out to be a chapter 7 bankruptcy case, which is much better for the consumer.

What is Chapter 7 Bankruptcy?

Manchester CT Chapter 7 Bankruptcy is typically referred to as a “fresh start bankruptcy.” Chapter 7 chapter 7 bankruptcy - chapter 13 bankruptcyBankruptcy allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will also be able to get rid of old income tax debts and property tax debts. You do have to qualify to file Chapter 7 Bankruptcy, but if you qualify and most people who need to file Chapter 7 Bankruptcy do, it is the fastest, most affordable way to get yourself out of debt and give yourself a fresh financial start.

How is Credit Card Debt Treated in a Chapter 7 Bankruptcy?

Credit card debts are typically unsecured debts. Unsecured debts are almost 100% dischargeable in a chapter 7 bankruptcy filing. However, there are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

What Happens to Personal and Payday Loans when you file for Chapter 7 Bankruptcy?

Personal loans are typically unsecured debts and unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. If the personal loan is a secured debt, meaning you pledged property as collateral, you will have the choice of either keeping the property and continuing to pay on the loan, or relinquishing the property and having the loan discharged. Your bankruptcy lawyer will be able to advise you regarding personal loans and how the bankruptcy filing will affect them. Payday loans are becoming increasingly more common these days. Payday loans are unsecured debts and are therefore 100% dischargeable in a chapter 7 bankruptcy filing.

A Major Reason Why People file for Chapter 7 Bankruptcy – Medical Bills

Medical illness is one of the most common reasons to file a chapter 7 bankruptcy. In most cases, a medical illness is financially devastating to a debtor and the bills are just too much to handle. Chapter 7 bankruptcy will eliminate all of your unpaid medical bills no matter how much you owe. Collection agencies are hard at work trying to collect medical bills on behalf of doctors and hospitals. These debts will ultimately find you in court as most collection agencies will file suit against you to collect the debt. When this happens, you are responsible for not only paying the medical bills, but the attorney fees, the collection agency fees, the court costs, and the list goes on. If you have medical bills that you cannot afford to pay or you are being harassed or sued by a collection agency, filing a chapter 7 bankruptcy petition will get rid of the debt, the collection agency, and the lawsuit forever. You don’t have much time to waste if you have been contacted by a collection agency before you are sued and your wages are garnished.

In Most Cases Repossessed Cars, Default Car Loans, or Car Leases Can be Discharged in a Chapter 7 Bankruptcy.

Car loans and car leases are secured debts until your car has been repossessed. A secured debt is one where the property is pledged as collateral for repayment of the loan or payment of the lease. If you don’t pay the loan or lease, the finance company is entitled to take back the vehicle. However, once you give up possession of your car, any remaining debt on the car loan or car lease is 100% dischargeable in a chapter 7 bankruptcy case as an unsecured debt. You will be able to keep your car if you agree to legally honor the car loan or car lease after the bankruptcy and you remain current on your payments. Your Manchester CT bankruptcy attorney will prepare and file with the court the special documents you need to keep your car in a bankruptcy.

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

A Manchester CT Bankruptcy Lawyer is Best to Talk to You About Home Foreclosure Debt.

If your Manchester CT home is in the process of being foreclosed or has already been foreclosed, you will probably end up owing the bank money after the foreclosure. This is referred to as a deficiency. A mortgage loan is a secured debt until the foreclosure occurs. Once the foreclosure occurs and your house is taken from you, any remaining debt is now considered unsecured and 100% dischargeable in a chapter 7 bankruptcy. You don’t have to wait for foreclosure if you can’t afford to live in the house you own. If your home has just become too expensive to afford for any reason, you can walk away from it and the mortgage loan in a chapter 7 bankruptcy. Your bankruptcy lawyer will advise you on how to proceed if you are faced with this type of financial situation.

Unpaid Income Taxes are the Most Complex Area of Chapter 7 Bankruptcy Law – You Need An Bankruptcy Attorney For Help

The three most common types of taxes that most people pay are federal and Connecticut income taxes, personal property taxes, and real estate taxes. These taxes are all treated differently in a chapter 7 bankruptcy case and your bankruptcy lawyer is the best source of advice on this subject. The most important thing to remember when filing for bankruptcy is that your income tax returns must all be filed in order for your case to be successful.

Incomes taxes owed to the federal government and to your state are known as unsecured priority debts and are not dischargeable unless certain circumstances exist. These certain circumstances generally involve how old the taxes are and whether or not you filed your tax returns on a timely basis. Generally speaking, income taxes must be at least 3 years old and have been filed at least 240 days prior to the bankruptcy filing in order to be dischargeable.

Personal property taxes are also unsecured priority debts as are income taxes, but the rules for discharge are different. Personal property taxes can be discharged as long as they are at least one year old. Your Manchester CT affordable bankruptcy attorney will be able to tell you which taxes are dischargeable and which are not when preparing your case.

Real estate taxes are secured debts and must be paid just like a mortgage loan must be paid if you wish to keep your house. If you don’t pay your real estate taxes, the town will place a tax lien on your home and eventually foreclose the lien. A tax lien foreclosure is a lawsuit against your ownership interest in the house which seeks to have your house sold so that the delinquent real estate taxes are paid.

Taxes are very complicated and the information provided above is designed to give you a brief overview and understanding of how your taxes are handled when you file for chapter 7 bankruptcy. A bankruptcy attorney has special training, skill, and experience in dealing with these matters and your specific situation should be discussed during your free bankruptcy consultation.

Of course the biggest question is “Do I Qualify to File Bankruptcy?”

Chapter 7 bankruptcy filers do need to qualify in order to file. To qualify for a Chapter 7 bankruptcy filing, you must not have filed within the past eight years and your household income must be below the median income for the state in which you reside. Generally speaking, your household income for the last six months is averaged and then multiplied by 12 to arrive at your qualifying income. Your qualifying income is then compared to the median income of your State for a similar-sized family. If your qualifying income is below the median income you qualify to file a Chapter 7 Bankruptcy. If your qualifying income is slightly above the median income you still may qualify, but that formula is too complicated to describe here. Your attorney will be able to determine your eligibility for filing Chapter 7 using all the possible eligibility methods. If you don’t qualify to file under Chapter 7, you may still file under Chapter 13.

Don’t Get Involved With Those Debt Settlement Companies!

do not use debt settlement companiesDon’t be fooled by all those ads for credit counseling, debt consolidation, and debt settlement firms that promise to get you out of debt for pennies on the dollar. Most Manchester CT debtors who try to get out of debt by using one of these organizations never complete the program and end up losing all the money they have paid into the plan. They also don’t tell you that you have to pay their fees first before they will send any money to the credit companies, that every credit card company and creditor must agree to participate in the plan (which many will not), and that any reductions in your principal balances are subject to state and federal income taxation. Filing for bankruptcy is the most affordable way to get yourself out of debt and bankruptcy is not a taxable event. You will not have to pay any taxes on the debts that are discharged!

Will My Credit Be Ruined Forever?

No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. A very easy way to monitor your credit score after your Chapter 7 bankruptcy filing is through a company called Credit Karma.

A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card.  And you can only file for Chapter 7 Bankruptcy once every eight years!

REQUEST YOUR FREE OVER-THE-PHONE CHAPTER 7 BANKRUPTCY CONSULTATION BY CLICKING HERE!

Do I Get to Keep My Possessions?

In most cases, you will be able to keep your possessions when you file for bankruptcy. The bankruptcy laws allow you to keep a certain value of property where the value is based upon the debtor’s equity in the property. This property can be anything from household goods, bank accounts, jewelry, electronics, computers, etc. The type of property doesn’t matter as much as its value. The amount of property you can keep or that is considered exempt depends on a number of factors, for example, whether you own a home or rent. The majority of debtors who file Chapter 7 bankruptcy cases are able to keep all of their property. This is commonly referred to as a no-asset case. Your bankruptcy attorney will be able to tell you what property you can keep and what property may not be exempt.

When you are faced with an overwhelming monetary trouble because you’ve lost your work, or someone fell ill, or you obtained a divorce, or for essentially whatever reason, the bankruptcy regulations already existing that can help people out when they get in to a tough financial spot. There is a concept out there that makes folks think they are too great for bankruptcy and they will certainly try every little thing else to pay those expenses without having to apply for bankruptcy. The trouble with that is in many situations, people will have gone through their retirement cost savings, the equity in their houses, and other assets that might have been maintained had those individuals sought security under the bankruptcy code. It is not a shameful point to apply for bankruptcy. No one intends to declare bankruptcy, yet in some cases circumstances beyond our command make is needed for us to do so. Don’t wait up until you are to your last penny. Act and also find out just what you can with the help of a great bankruptcy lawyer, like myself. I expect conference you.

More Manchester CT Information:

[weather city=”Manchester” state=”Connecticut”]