CHAPTER 7 BANKRUPTCY

Bankruptcy is a legal process by which you can deal with your debt when you can no longer pay them. A chapter 7 is a liquidating bankruptcy, the most common bankruptcy case. In return for having debts discharged, the debtor must turn over to the Chapter 7 bankruptcy trustee all property except for certain assets which Connecticut law or Federal law allows them to keep as exempt so that the debtor can make a fresh start.

In most consumer Chapter 7 bankruptcy cases in Connecticut, all the assets are exempt, leaving no assets to liquidate and no dividends to creditors. Chapter 7 is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, and small businesses.

ELIGIBILITY FOR CONSUMER CASES

For individuals whose debts are primarily consumer debts, eligibility to file Chapter 7 is determined by the means test instituted with the 2005 amendments to the bankruptcy code. It simply means that you have to show that you are "worthy" of relief in Chapter 7 given the amount of money that is left over each month after deducting reasonable household expenses. The means test is calculated comparing your average income for the past six months, annualized, to the median income for Connecticut households of the same size. If your income is less than or equal to the state median, you "pass" the means test and may file Chapter 7. If your income exceeds the state median, a further needs to be performed before to determine your elegibility for a Chapter 7 bankruptcy in Connecticut. Contact us today so our bankruptcy attorney may determine your eligibility.

Before you get ready to file you must participate in a credit briefing section provided by a credit counseling agency approved by the government. The purpose of this credit briefing session is to explore whether there is an alternative to bankruptcy in your particular situation. The cost varies. Some agencies will reduce or waive the fee depending in your circumstances. It is important to know what a Chapter 7 bankruptcy can do for you, and what it can't. The Chapter 7 bankruptcy lawyers of Seymour Law Firm LLC can answer your questions and help you figure out your best option.

How does the process start? Click here to continue reading.


Helpful Links

Bankruptcy Forms and Checklists Download In this section, you will find our bankruptcy notices, documents checklist and questionnaire.
Quick Median Income TestQuick calculation of your average household income for the past six months.

Means Test Information

Test used to determine your eligibility to file Chapter 7 when your debts are primarily consumer debts.

Bankruptcy MythsFind out eight myths that keep people from getting debt relief in bankrutpcy.
Bankruptcy DOs and DONT's Find out common mistakes to avoid before filing bankruptcy.
Frequently Asked QuestionsHave questions? Visit our this Frequently Asked Questions Section or submit a new question.
Bankruptcy VideosAll Seymour Law Firm clients are encouraged to watch these videos.
Credit Counseling and Debtor's EducationLinks to the mandatory bankruptcy pre-petition and pre-discharge courses.
United States Bankruptcy Court Link to the Bankruptcy Court for the District of Connecticut.
Connecticut Bankruptcy Lawyers Our bankruptcy lawyers proudly serve residents of of Danbury, Bethel, Bridgeport, Brookfield, Darien, Easton, Fairfield, Greenwich, Monroe, New Canaan, New Fairfield, Newtown, Norwalk, Redding, Ridgefield, Shelton, Sherman, Stamford, Stratford, Trumbull, Weston, Westport.