Can Filing for a Chapter 7 Bankruptcy Help Me?
As an additional benefit, the filing for Bankruptcy will stop the harassing collections phone calls. The law automatically stays creditors from trying to collect from the debtor until their case has been discharged or dismissed by the Federal Bankruptcy Court.
How Long Does A Chapter 7 Bankruptcy Take?
Will I Be Allowed to File for A Chapter 7?
While many debtors may believe that they can not qualify for a Chapter 7 Bankruptcy the statistics disagree. According to the National Association of Consumer Bankruptcy Attorneys, “at least 97 percent of those who could file for chapter 7 bankruptcy before the law changed are still able to file a chapter 7 today.”
Even if a debtor cannot qualify under the Chapter 7 requirements, there are still other options such as filing for a Chapter 13, which can be used to avoid foreclosures and restructure your debt, etc.
Do I Need to Hire a Lawyer to File for Bankruptcy?
What Types of Debts are Dischargeable in a Chapter 7 Bankruptcy?
• Credit Cards
• Medical Bills
• Court Judgements (excluding most Family Support Obligations)
• Personal Loans
• Negligence Claims
• Deficiency Judgments (Foreclosures and Repossessions)
Will I Lose My Assets?
Can I Keep My Home?
If there is no equity in your home then you will be allowed to keep your home following your bankruptcy.
If there is equity in your home then the issue becomes how much equity is there. A debtor filing bankruptcy can “exempt” up to $75,000 of the home’s equity for an individual or up to $150,000 for a joint filing.
If you are keeping your home most lenders will require that you “reaffirm” your debt. To be able to reaffirm your debt you will have to be able to demonstrate that you will be able to continue to afford your home following your bankruptcy.
Can I Keep My Car?
In Connecticut a debtor is permitted to have up to $3,500 of equity in their vehicle. If you have more equity than $3,500 in your vehicle then you may still be able to still exempt your vehicle either under the Federal exemptions or even possibly by purchasing the unprotected equity.
If you are keeping your vehicle then most lenders will require that you “reaffirm” your debt.
For more information on how the Fournier Law Firm can help you navigate the bankruptcy process, contact us now for a free consultation.