Bankruptcy in Connecticut
There are many reasons why you may be considering bankruptcy in Connecticut. For example, you may be struggling to make minimum payments, can’t find a way out of debt within five years, are getting foreclosure notices, have lost a job or major client, or are in a divorce situation. You should be aware before filing that there are certain debts that bankruptcy won’t clear you of including: alimony, child support, back taxes, student loans, large purchases that were made within a the period of 90 days before filing, government fines or penalties, debts incurred by fraud, and certain cash advances received within the period of 70 days within filing.
Filing Chapter 7 bankruptcy
There are many different Chapters of bankruptcy, but the best for individuals is Chapter 7. When you file by this method you will find that you should be able to keep most or all of your possessions. This is determined by the exemptions of the state which will be discussed later. In order to file for Chapter 7 bankruptcy in Connecticut, your first step will be to file your petition for bankruptcy, a statement of financial affairs, as well as all of the obligatory schedules, to the bankruptcy court. You will also have to provide a list of all of your creditors as well as the total that you owe each of them, as well as your income source and how much you make.
What is a 341 hearing?
Once you file all of your necessary paperwork for bankruptcy in Connecticut, you will have to attend a 341 hearing within the period of 20 to 40 days after you’ve petitioned for bankruptcy. This is the first meeting of creditors and it is pertinent that you attend if you want a successful trial. The trustee will ask you questions about your financial situation as well as your creditors. You will be under oath.
Exemptions for the state of bankruptcy
When filing for bankruptcy in the state of Connecticut, you will find that you have certain exemptions on the property that you own. Property that is declared exempt within the confines of the law will be retained by you and not subject to be taken by your debtors. Certain exemptions that are offered in the state of Connecticut include: your home up to $184,520, life insurance payments, policies and contracts; jewelry up to $1,350, health aids, motor vehicle up to $3,225, and so on.