Bankruptcy is a legal process
that allows you to put your finances together, and get a fresh financial start.
Chapter 7 and Chapter 13 bankruptcies are the most common ones filed by people
in the USA who are facing unmanageable debt. Chapter 7 bankruptcy, also known
as liquidation bankruptcy, is right for individuals who fall below certain
income levels to eliminate unsecured debt, such as medical bills and unpaid
credit cards. It completely wipes clean and discharges eligible unsecured debt.
Also, wage garnishments and bank account levies will be stopped. All qualifying
debts will be completely discharged, and you will be able to retain all your
exempt assets, which include a small residence, and a small car.
On the other hand, Chapter 13
allows you to restructure your debt. Your bankruptcy lawyer Denbury in
Connecticut will be able to stop the foreclosure of your property, help you
catch up with your past due payments, and repay your outstanding debt in
smaller amounts, and over a longer period of time. You will be provided
with a court-approved reorganization plan to repay your debt over a period
of three to five years. Your bankruptcy lawyer Danbury should be able to
help keep your property and vehicle, provided you repay your creditors an
amount equal to the value of your property not covered by bankruptcy exemption.
Both Chapter 7 and Chapter 13
bankruptcies will bring an immediate halt to all your creditors’ collection
activities. Your bankruptcy lawyer will notify all your creditors about your
filing of bankruptcy in Danbury, Connecticut, and they will be legally
prevented from contacting you for debt collection till the pendency of the
bankruptcy case. They can contact only your bankruptcy
lawyer Danbury for any debt recovery, not you directly. If they do, you
have the right of up to a $1,000 award per violation, along with court fees,
and additional monies that you might have suffered as a result of misconduct.
Negotiating with your creditors
One of the key benefits of hiring
bankruptcy lawyers Danbury from a reputed law firm, such as Recovery
Law Group, is that they are specialists in bankruptcy laws and the US
Bankruptcy Code, and can guide you through the process. From filing the
necessary paperwork to representing you in court, the attorney will work to get
the best outcome in your case. The attorney will negotiate with the creditors
on your behalf, and defend your petition in court. The attorney will ensure
that your personal property is valued correctly, potentially allowing you to
retain most of your assets under Chapter 7 bankruptcy.
Developing a fair repayment plan
Be it either Chapter 7 or Chapter
13, you will be able to get rid of that overwhelming debt, harassment, and
pesky bills that keep dragging your finances down. If you do not qualify for
Chapter 7 bankruptcy and your bankruptcy lawyer Danbury in Connecticut decides
to file for Chapter 13 bankruptcy, they will develop a fair repayment plan, and
negotiate with the trustee on your behalf. The lawyer will ensure that you have
the best chance of successfully completing your plan. Your bankruptcy
attorney Danbury will also educate you about your financial options, and get a
fresh financial start.
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