Connecticut Bankruptcy Laws should be known by every resident of the state of Connecticut. In every state across the country, there has always been the need for bankruptcy protection. Nonetheless, this should not be taken lightly and the decision to file for bankruptcy should be made with the help of an expert financial analyst or a lawyer. Bankruptcy laws are uniform all throughout the country, but there are certain Connecticut bankruptcy laws that you should also be aware of.
Before filing for bankruptcy you have to attend credit counseling classes to ensure that your only option left is bankruptcy declaration. More importantly, do not understand the whole complex process of bankruptcy laws all by yourself. Seek the expertise of a lawyer who knows the particulars about Connecticut bankruptcy laws. This lawyer will explain all you need to know about bankruptcy, help you choose the right form of bankruptcy, and assist you in filing for bankruptcy.
As specified by the bankruptcy code, there are two forms of bankruptcy protection, Chapter 7 and Chapter 13. Applying for Chapter 7 bankruptcy requires a lot of work on your part. In order to be eligible for this kind, your annualized monthly income should be less than the median income level of the state of Connecticut. You also have to make sure that no assets are transferred previous to filing for bankruptcy, or else this will be grounds for disqualification. For any bankruptcy case, a trustee is assigned. In Chapter 7, the trustee takes over the control of your non-exempt assets, liquidates it, and distributes the proceeds of your assets to the creditors you owe.
Another bankruptcy form, which is an alternative to Chapter 7, is Chapter 13. Compared with the previous bankruptcy form, Chapter 13 will not take hold of your assets. It is the debtor’s responsibility to propose a repayment plan upon filing a bankruptcy petition in court. The plan should outline how the debtor is going to pay the creditors in a 5-year period. This plan will have to be approved by the court before implemented. It is the duty of the case’s trustee to oversee the plan and ensure that monthly payments are paid to creditors. During this period, the debtor will receive court protection from collection actions from the creditors.
The state shields certain assets from the creditors. These assets are called exemptions. The debtor will be given the option to choose between federal and state exemptions. It is the duty of the lawyer to guide his client on what exemptions to choose that would best fit. Normally, the state laws are more lenient with their exemptions. In the case of Colorado, the following are the exemptions:
• Real estate property of up to $75,000;
• Vehicle of up to $3,500;
• Any property of the debtors choice worth $1,000;
• 75% of earned, but unpaid wages;
• Tools of trade and military equipment, health aid and burial plots;
• Alimony and child support; and
• All food, clothing, fixture and furniture, and appliances.
Every state defines its own law when it comes to the appropriate forms to fill out, the filing method to use, and other intricacies that will all need a lawyer’s supervision. In short, there are complexities that should be best dealt with the assistance of an attorney.