Asset Protection Lawyer New Haven, CT
When a person files for bankruptcy in Connecticut, the goal is to give the person filing a fresh financial start. This means being able to either discharge debts in a Chapter 7 bankruptcy or come up with a debt repayment plan in a Chapter 13 bankruptcy. The goal is also to be able to keep as much of your property as you can through property exemptions. An asset protection lawyer in New Haven, CT from the Law Offices of Ronald I. Chorches can help.
A person who files bankruptcy is allowed to keep everything they own that falls under the property exemption bankruptcy laws. These exemptions can be found in the U.S. Bankruptcy Code. Each state also has its own bankruptcy laws and property exemptions. It begins to get confusing when the state you are filing in allows you to choose either the state exemptions or the federal exemptions. There is also the added confusion of how courts may have interpreted these laws in prior legal cases. Moreover, confusion as how the local courts and trustees are enforcing these decisions. This is why it is critical to work with a New Haven, CT asset protection lawyer.
The state of Connecticut allows bankruptcy filers to choose federal exemptions. Your attorney will evaluate your case and advise which exemptions – state or federal – will benefit you more. In states that allow filers to choose, there is also a residency requirement. Residents must have lived in that sate for a minimum of at least two years. If you have lived in your state less than two years, then you would be required to use the exemptions of the state you lived in during the six months prior.
What If I Don’t have Property Exemptions?
If you have assets that are not protected by property exemptions, your attorney can work with you before you file for bankruptcy. A lawyer will determine the best way to protect your assets. This can take some time, which is why it is so critical to contact an attorney when you know that you are struggling financially. Importantly, contact an attorney before any creditors have taken legal action, such as initiating foreclosure action or filing a civil lawsuit to collect what is owed to them.
In some situations, the best way to protect your assets is to file for Chapter 7 bankruptcy instead of Chapter 13. This will determine if the trustee will accept fair market value of the item or items you want to keep. If the item is purchased, it saves the trustee the time and costs of having to sell the items themselves. Since this option is somewhat complicated, working with an asset protection lawyer in New Haven, CT is important.
When people think of asset protection, not normally does one conjure up the thought of bankruptcy. Many people may find themselves in bankruptcy court at some point in their lives. A proper asset protection in New Haven, Connecticut can draft a plan that can help them avoid losing all of their assets. However, the asset protection plan should be established well in advance of any creditor difficulties. This approach will give people a reasonable chance of coming out of bankruptcy with a decent amount of assets.
When a bankruptcy petition is filed, the court will consider all interests in the property of the debtor at that point, but will also issue what is legally referred to as a stay. This means that all creditors, collectors, and repossessors must immediately cease their activities.
The bad news is that under Chapter 7 bankruptcy, you’ll probably end up losing your home. The upside to Chapter 7 is that if you see foreclosure on the horizon, you can file for Chapter 7 bankruptcy protection before the foreclosure proceedings start and stop foreclosure from showing on your record. An asset protection lawyer in New Haven, CT can evaluate your situation to see what options are best.
Chapter 13 bankruptcy differs from Chapter 7 in that you repay your debts over the course of three to five years. This allows you to restructure and create a financial success plan for yourself. During this time, you will have a lower monthly payment on your house and could allow you time to get caught up on the arrears. This route could save your home.
Under either option above, a creditor can file a motion to lift the stay. This would ask the court permission to proceed with a foreclosure sale even while you’re in bankruptcy proceedings. Whether the court grants this will depend on many factors. Even if it is granted, you’ll still receive at least a couple of months’ time in the house before the foreclosure sale. In order to make sure you are protected, it is best to have a New Haven, CT asset protection lawyer representing you.
Chapter 13 Is Better if You Want to Keep Your Home
This is why asset protection is important. Under Chapter 13 bankruptcy, you can pay back any late payments to the bank under the repayment plan set up by the bankruptcy trustee. By making all of your payments on time, you will avoid foreclosure. In addition, if you have a second or third mortgage, the court may deem these unsecured debts. This means you wouldn’t have to repay them. In order for that to happen, your first mortgage must be secured by your home’s full value which might leave zero equity remaining for your second or third mortgage.
Let a New Haven, CT Asset Protection Lawyer Help Save Your Home
As shown here, despite thoughts to the contrary, bankruptcy can be a key component to asset protection. Once it’s clear you have no other options besides bankruptcy, choosing the right course of action is paramount to saving your assets. You must act quickly because time is of the essence. Don’t wait until your bank has filed foreclosure proceedings. You need to act first. Contact The Law Offices of Ronald I. Chorches today to speak with an asset protection lawyer in New Haven, CT. We have the experience necessary to guide you to a fresh start.