When To File Bankruptcy

Once you file bankruptcy, an automatic stay is issued by the court, which halts all repossession and foreclosure actions by creditors. In addition, debt collection agencies and creditors cannot contact you and must direct all correspondence through your attorney. In this way, bankruptcy is not only an effective means for stopping or avoiding foreclosure, but also for stopping the endless calls and letters from creditors.

If you have debts that you can't pay, it's probably a good idea to educate yourself about bankruptcy. If you are dealing with high interest rates, struggling to reduce your principal or are worried about losing your home, contact the Stratford Chapter 7 bankruptcy lawyers at Ambrogio, Pletter & Associates, LLC, today.

If you qualify for Chapter 7 bankruptcy, credit card debt, medical bills and other forms of unsecured debt will be discharged. Under the terms of Chapter 13, your debt will be restructured, allowing you to catch up on past due mortgage payments and regain control over unsecured debt.

Contact our law office in Stratford or East Haven, Connecticut, to schedule a free consultation and to learn more about what our past clients say about us. Call 203-502-7436.

Do I Need To File Bankruptcy? Will My Credit Be Ruined?

Unfortunately, some people wait until the last moment to file bankruptcy. As a result, their home may be foreclosed, their credit cards maxed out and their cars repossessed. If you're finding it increasingly difficult or impossible to pay your mortgage and your monthly bills, please consider filing bankruptcy before things get out of control.

Before filing bankruptcy, it's important to ask yourself the following questions:

  • How much interest are you paying on your credit cards?
  • In the course of one year, how much has your principal been reduced?
  • How much money are you able to save each month on your current budget?

At Ambrogio, Pletter & Associates, LLC, an attorney will explain the benefits of bankruptcy and how they apply to your exact situation. We will give you honest answers about how to obtain debt relief. Contrary to what you may believe, bankruptcy doesn't mean your credit will be forever destroyed or that you'll never be able to qualify for a loan or credit card again. In fact, not only are most people able to rebuild their credit, but some also qualify for a low balance credit card within months of filing bankruptcy. Our attorneys can explain what happens after bankruptcy and the steps you can take to begin rebuilding your credit.

Will I Lose My Home If I File Bankruptcy?

While each person's situation is different, if you are able to continue making monthly mortgage payments, you should not lose your home. Chapter 7 does leave you with more disposable income each month to put toward your mortgage.

People who struggle to pay the minimum balance on credit cards or certain kinds of loans are paying on debts that would otherwise be discharged in bankruptcy. By eliminating credit card debt, high-interest rate loans and other unsecured debt, a debtor can free up money in his or her budget to pay the mortgage.

Loan Modifications And Avoiding Foreclosure

Homeowners who have a steady source of income and a variable rate or interest-only mortgage, or who have suffered a job loss or illness may qualify for a loan modification with their lender. However, if a homeowner owes too much credit card debt, it's less likely he or she will be approved for a loan modification.

It may be effective to first file Chapter 7 bankruptcy and then apply for a loan modification. Since filing bankruptcy places an automatic stay on debt collections and foreclosures, this is an effective way to stop foreclosure and make mortgage payments more affordable.

If a loan modification is not successful, Chapter 13 bankruptcy still exists as an option. Filing Chapter 13 will restructure your debt, stop foreclosure and pay back arrearages of up to five years. Additionally, depending on your financial situation, you may qualify for a loan modification while you are in Chapter 13.

The Advantages Of Filing Bankruptcy

Bankruptcy is not intended as a punishment. Its sole purpose is to provide honest, hardworking people with a means of obtaining a fresh financial start after being overwhelmed by debt. As a result, filing bankruptcy offers the following advantages:

  • Stops wage garnishment
  • Stops repossession
  • Stops foreclosure
  • Stops harassing creditor calls
  • Removes a lien on your house

Contact Our Stratford Bankruptcy Attorneys Today

To learn more about the benefits of bankruptcy and loan modifications, contact the bankruptcy attorneys at Ambrogio, Pletter & Associates, LLC, today to schedule a free consultation and discuss the options available to you.