Bankruptcy Lawyer New Haven, CT

Is Chapter 7 Bankruptcy Right for You?

bankruptcy lawyer in New Haven, CT

If you’re considering filing for bankruptcy, it’s more than likely because you’re experiencing financial hardship. When you’re experiencing financial hardship, almost all aspects of your life are negatively impacted. A particular area of your life that’s affected will involve your children. Will courts hold you on the hook to continue paying child support if you’re in the middle of filing?

The short answer is, “Yes.” You’re still responsible to remain or become current on your child support payments. Keep in mind, child support is the right of the children and not the parent. It is not an obligation that you can contract, negotiate, or file your way out of until all your children reach the age of majority (18). A judge can still find you in contempt of court if you are in arrears on rendering financial aid to your children. In fact, it can negatively affect your bankruptcy plan if you have unpaid child support.

Yet, you can use your bankruptcy filing as evidence that you cannot meet the current child support amount. In Nevada, before a judge considers reducing your monthly amount, you must show that your financial situation has changed significantly from when the monthly amount was first decreed. Something, such as unemployment, disability, reduced income, or having more children are examples of significant changes. Bankruptcy falls in line. Thus, although you must still pay child support monthly, you can get the amount reduced. A seasoned bankruptcy lawyer in New Haven, CT can help you with this process.

5 Common Chapter 7 Bankruptcy Myths Debunked

All too often, those who could benefit from filing for bankruptcy hesitate to do so because they have heard myths about what filing for bankruptcy could mean for their future. This is one of the reasons why a bankruptcy lawyer New Haven, CT residents can trust should always work actively to dispel such myths that keep people from seeking the assistance they require. At The Law Offices of Ronald I. Chorches, we are committed to ensuring that our clients and prospective clients understand what is true about the bankruptcy process and what is not.

Myth One: You’ll Lose All of Your Assets

In a Chapter 7 bankruptcy case, a trustee is assigned to evaluate a filer’s non-exempt assets. In the event that non-exempt assets are valuable enough that they could effectively be sold to help repay the filer’s debts, the trustee is empowered to make such a sale. However, it is important to understand that very few Chapter 7 filers have non-exempt assets and those that do rarely have such valuable assets that they risk being sold by a trustee.

Myth Two: Bankruptcy Will Negatively Affect Your Credit Forever

The New Haven, CT bankruptcy lawyer team at The Law Offices of Ronald I. Chorches doesn’t just practice bankruptcy law. Our team also actively helps clients with non-bankruptcy forms of debt relief and debt management, including debt consolidation. As a result, we only recommend approaches that fit our clients’ unique needs.

For example, when one’s debt challenges are relatively minor, consolidating debt can help to make repayment more manageable without impacting an individual’s credit score to any significant degree. By contract, we know that while filing for bankruptcy will cause an individual’s credit score to dip temporarily, the fresh start that bankruptcy provides also offers many individuals the opportunity to rebuild their credit score consistently and with confidence for the first time in their lives.

Myth Three: Filing for Chapter 7 Bankruptcy Is Expensive

Unlike many legal challenges, filing for Chapter 7 bankruptcy is not an expensive process. Additionally, if you fall below a certain income bracket, you may be able to successfully petition the court to have your fees waved.

Myth Four: You’ll Lose Your Car

Depending upon the state law that governs your bankruptcy petition, you’ll be empowered to exempt your car or a certain amount of the equity you’ve earned by making payments on your car. Most of the time, Chapter 7 filers remain entitled to keep their primary vehicle. If you’re concerned about your car though, let us know. We can clarify your rights and options in a more personalized way if you schedule a risk-free consultation with our firm.

Myth Five: Irresponsible People File for Bankruptcy

Did you know that filing for bankruptcy can actually be an asset to your credit history (as long as you remain current on your debt obligations moving forward)? This is because filing for bankruptcy not only provides individuals with an opportunity to “start fresh” it also demonstrates a determination to resolve your issues responsibly instead of simply running from your debt forever. As the experienced Connecticut legal team at The Law Offices of Ronald I. Chorches can attest, filing for bankruptcy is often the mark of a truly responsible individual who has simply fallen on hard times. Connect with our New Haven, CT bankruptcy lawyer team today to ascertain whether filing for bankruptcy might be the best option for your situation.

New Haven, CT Bankruptcy Infographic

5 Common Chapter 7 Bankruptcy Myths Debunked

Want To Regain Control of Your Finances? Here Are Some Things To Consider.

Calling a bankruptcy lawyer in New Haven, CT may not be something that you look forward to, but you’ll likely be glad that you did. If you’re overwhelmed by late fees, accruing interest, and harassment from creditors, settling your debt can give you your life back. The Law Offices of Ronald I. Chorches have the experience necessary to negotiate Chapter 7, Chapter 11, and Chapter 13 Bankruptcies. Depending on your circumstances, they will be able to recommend the best route for you to take.

If you’ve never considered a debt settlement in the past, you likely do not know what to expect. Here are a few things to keep in mind when you go to talk to your attorney.

Household or Business Entity 

Any bankruptcy lawyer in New Haven, CT will need to know who you are filing for. Households and businesses have different options available to them to settle their debts. Working with the Law Offices of Ronald I. Chorches will help you develop the right strategy for your situation. If you’re filing for your household, your attorney will help you settle your debt with minimal disruption to your quality of life. Conversely, if you’re filing as a business entity, your attorney will help you reach a settlement while trying to keep your business intact.

Will It Affect My Custodial Rights?

Filing for bankruptcy, regardless of whether it’s Chapter 7 or 13, should not influence your time with your children. Unless your ex-spouse can prove that you’re a danger to your children, your financial hardship is temporary, and it does not make you an unfit parent. Not to mention, these matters are handled by two separate courts. Bankruptcy court and family court have different objectives. Family court looks to the best interest of the child. Having an attentive, loving, emotionally and physically supportive parent is what will matter most to a family court judge regarding custodial rights.

Do I Still Have To Pay Spousal Support?

As you might know, in Connecticut, spousal support (also known as “alimony”) is handled differently than child support. For one, whereas child support is mandatory and non-negotiable (even though the monthly amount might be flexible), spousal support is not. An ex-spouse must request this during the divorce process. The amount that you pay to your ex is based on whether she or he can maintain your previous lifestyle, her or his income, whether she or he is the custodial parent, and the wage earning gap between you two. Therefore, filing for bankruptcy can reduce your monthly spousal support payment amount.

Once a judge orders you to render financial aid to your ex-spouse, you’re on the hook for this assistance until the decreed time is up. The number of years you pay support is often based on the length of your marriage before you divorced. Thus, although you can’t get a judge to remove this obligation, you and your bankruptcy lawyer can use your filing as evidence as to why the spousal support amount needs to be reduced.

Do You Have Assets? 

If you’re looking to get creditors off of your back, it is a good idea to take inventory of your asset portfolio. This is because bankruptcy proceedings come in two types The first type is a reorganization bankruptcy. Reorganization bankruptcies refer to Chapter 11 and Chapter 13 and involve a payment plan that is overseen by a court-appointed trustee. 

On the other hand, Chapter 7 is a liquidation bankruptcy. This settlement gives you the option to liquidate some of your holdings in order to satisfy your creditors. The ideal asset classes for this kind of bankruptcy are extra cars, capital investments, and properties that are not your primary residence. The benefit of exploring liquidation as an option is that you will be able to satisfy your creditors faster and with less hassle. 

New Haven Bankruptcy Statistics

According to Bankruptcy Filing Trends in Connecticut, the total number of bankruptcies that were filed in the state in 2021 was lower than in any of the three previous years. While this may be accurate, many individuals and businesses will likely need to file for bankruptcy in 2023, and it may be of benefit to them to do this compared to their other options. To find out more about options for your particular situation, contact a reliable New Haven bankruptcy lawyer.

Different Types of Bankruptcy Explained

There are quite a few different bankruptcy types that can be filed for. These different types of bankruptcies are all meant for different purposes and groups. While most bankruptcy declarations are for attempting to erase debts some do in fact differ from others. They differ from one another, especially in the fact that some are reserved for individuals while others are reserved for businesses or other organizations. The different types are listed below:

Chapter 7

This is the most common type that individuals file for. A court will appoint someone to watch over the selling of assets to ensure that everything is done correctly and legally. This selling of assets is done to pay the people or organizations that are owed money from those debts. During this bankruptcy type, credit cards and bills related to medical purposes generally are wiped out. However, taxes as well as debts from schooling, like student loans, are not wiped out. Houses are generally protected from having to be sold in this bankruptcy type but not always. That’s why it’s important to speak with a New Haven, CT bankruptcy lawyer to figure out your options. 

Chapter 9

Chapter 9 bankruptcy is a bankruptcy type reserved for municipalities and cities alike to pay back debts that they owe. School districts and towns are also included in this type. Contact Chorches Bankruptcy Law for assistance with this type of bankruptcy.  

Chapter 11

Chapter 11 is a bankruptcy that generally generates big headlines in the news. That’s because chapter 11 is used by big businesses and corporations. A court must approve a repayment plan of debts by a corporation or business to those who are owed money. These businesses and corporations must also include a plan on how they will continue to stay in operation while going through the debt repayment. 

Chapter 12

Chapter 12 bankruptcy is specifically for farmers or fishermen. They can declare chapter 12 to keep themselves from having to sell off their equipment and property. A bankruptcy lawyer in New Haven, CT from The Law Offices of Ronald I. Chorches can explain the different details about debt limits and repayment plans when it comes to chapter 12 bankruptcy. 

Chapter 13

Chapter 13 is similar to chapter 7 in that it is generally used by individuals. However, it differs mainly in the fact of debts are repaid instead of wiped out. In chapter 13, debts are paid back over monthly installments. These debts are typically paid back in a 3 to 5 year period and the monthly amount will depend on income levels as well as the debt totals. Assets can be kept in chapter 13 unlike in chapter 7 where they mostly get sold.  

Chapter 15

A Chapter 15 bankruptcy is used for international purposes and was established recently in 2005. This type of bankruptcy is used when someone has property or other assets in multiple countries including the United States. Your lawyer can fill you in more on the details of this type of bankruptcy. 

There are many things to consider when it comes to bankruptcy. You don’t need to embark upon the journey alone though. If you’re seeking to regain control of your financial future, call a bankruptcy attorney. Doing so is one of the best things you can do for yourself.

 

Law Offices of Ronald I. Chorches, LLC New Haven Bankruptcy Lawyer

 
261 Bradley St Second Floor New Haven, CT 06510
 

Our service area also includes Bridgeport, Manchester, and Waterbury. 

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