Helping You Understand Bankruptcy And What It Means For You
Financial problems can happen to anyone. An illness or injury, job loss, divorce or another unexpected event can leave anyone struggling to pay bills. Credit card debt can be especially overwhelming due to high interest rates and fees. Recent legislation will attempt to rein in fees and punitive interest rates by credit card companies. But these new laws do little to help people struggling under a mountain of debt right now.
If you are in debt and finding it difficult to meet your obligations, or if you are in a cycle of making minimum monthly payments without reducing your balances, you should learn about your debt relief options, including bankruptcy.
Since 1982, our Stratford, Connecticut, law firm has offered effective and well-informed legal help to individuals struggling with financial crises. To arrange a free consultation with a bankruptcy lawyer at our Stratford or East Haven office, or to learn more about what our clients have said about us, call 203-502-7436 or contact us online.
- Chapter 7 bankruptcy — In order to file Chapter 7, you must first pass the means test. You do not have to have a specific low income to qualify for Chapter 7. Instead, your disposable income after necessary expenses must be within certain limits. If you qualify for Chapter 7 bankruptcy, then the bankruptcy court can discharge (eliminate) credit card debt, medical bills and other unsecured debts. There are property exemptions that protect your home, automobile and some of your personal property in most Chapter 7 bankruptcy cases. Because each case is different, our attorneys can evaluate your situation at a free consultation and tell you whether Chapter 7 bankruptcy is the right option for you.
- Chapter 13 bankruptcy — Chapter 13 allows consumers to reorganize their debts and repay a portion of what they owe over a three- to five-year period. In order to be eligible for Chapter 13, you must submit a repayment plan for approval by the bankruptcy court. If the bankruptcy court approves the repayment plan, you can include mortgage arrearages, credit card debt, medical bills, car loans and other unsecured debts in your repayment plan. You may also be able to discharge some or all of your unsecured debt in Chapter 13, save your home and stop repossession of your vehicles.
- Chapter 11 bankruptcy — Businesses and individuals can seek relief under Chapter 11 to reorganize debt. Chapter 11 is similar in many ways to Chapter 13 but is intended to help businesses. Consult an experienced debt relief lawyer to learn more.
In order for individuals to file a bankruptcy petition, the law requires them to participate in credit counseling sessions over the phone or on the Internet. We assist our clients in arranging this counseling.
Bankruptcy And Your Home
Debt burden can jeopardize your ability to pay your mortgage. At Ambrogio, Pletter & Associates, LLC, we practice in real estate law as well as bankruptcy, which means we can give you thorough and practical advice about various debt relief options based on your current situation as a homeowner.
- Lost your home in foreclosure — If your home was worth less than what you owed, the mortgage company can get a judgment against you for the difference (deficiency judgment), which allows it to pursue you for payment even though you lost your house in foreclosure. Through Chapter 7 bankruptcy, you may be able to discharge the deficiency.
- Behind on your mortgage payments — Bankruptcy is only one of several options to either protect your home or walk away from a house that has become too great a financial burden. The nonbankruptcy options include foreclosure; a mortgage loan modification, perhaps through Connecticut’s foreclosure mediation program; a short sale; and a deed in lieu of foreclosure transaction.
Credit Cards, Repossessed Cars And Wage Garnishments
When consumers start thinking about bankruptcy, credit card debt, repossessed cars and wage garnishments are common causes. Talk to our attorneys about credit card debt settlement agreements, car repossessions and hardship petitions for wage garnishments.
Learn More About Bankruptcy And Debt Relief
- Do I need to file bankruptcy? — Deciding when bankruptcy is the right option.
- Life after bankruptcy — What to expect after debt has been discharged.
- Bankruptcy FAQs — Find answers to your general bankruptcy-related questions.