Best Bankruptcy Lawyers in Connecticut

About Bankruptcy Law in Connecticut, United States

Bankruptcy law in Connecticut, as in the rest of the United States, is governed primarily by federal statutes. The main law overseeing bankruptcy is the U.S. Bankruptcy Code, but certain aspects are influenced by state law, especially regarding property exemptions. Bankruptcy is a legal process that allows individuals or businesses unable to pay their debts to get relief, either by reorganizing their finances or liquidating their assets. Common types of bankruptcy for individuals include Chapter 7, which involves liquidation of non-exempt assets, and Chapter 13, which establishes a repayment plan. Businesses often file under Chapter 11 to reorganize debts while continuing operations. Filing for bankruptcy can provide immediate relief from creditor actions through an automatic stay.

Why You May Need a Lawyer

Bankruptcy law can be complicated, with strict rules, documentation requirements, and court procedures. You may need a lawyer if:

• You are overwhelmed by debt and considering filing for bankruptcy protection.
• You need help determining which type of bankruptcy is suitable for your situation.
• You have significant assets and are unsure what you can protect under Connecticut exemptions.
• You are facing foreclosure, wage garnishment, or lawsuits from creditors.
• You own a small business and want to explore business bankruptcy options.
• Your bankruptcy is likely to be contested by creditors or involves complex issues like divorce or tax debts.
• You have court deadlines or legal questions about bankruptcy proceedings.

Having a knowledgeable attorney can help you avoid costly mistakes, understand your rights, and maximize the protection available to you under the law.

Local Laws Overview

While federal law governs the bankruptcy process, Connecticut law plays an important role in determining which assets you can keep. Connecticut residents who file for bankruptcy can choose between state and federal exemption systems. State exemptions may protect certain property, such as a portion of your home equity, vehicles, clothing, and qualified retirement accounts. Other relevant Connecticut statutes address spousal and child support, which are generally not dischargeable in bankruptcy. Additionally, the U.S. Bankruptcy Court for the District of Connecticut has specific local rules and filing requirements. All bankruptcy cases in Connecticut are heard in one of the three federal courthouses: Bridgeport, Hartford, or New Haven.

Frequently Asked Questions

What types of bankruptcy are most common for individuals in Connecticut?

Most individuals file under Chapter 7 or Chapter 13. Chapter 7 is for liquidation, while Chapter 13 involves creating a repayment plan to pay creditors over three to five years.

Will filing bankruptcy stop creditors from contacting me?

Yes. Once you file, an automatic stay goes into effect, stopping most collection actions, including wage garnishment, foreclosures, and creditor calls.

Can I keep my house and car if I file for bankruptcy in Connecticut?

It depends on the exemptions you choose and how much equity you have. Connecticut and federal exemptions may allow you to keep some or all the equity in your home and car.

How much does it cost to file for bankruptcy in Connecticut?

Court filing fees are set by federal law and may change periodically. In addition, attorney fees vary based on case complexity and attorney experience.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy remains for up to ten years, while a Chapter 13 bankruptcy appears for up to seven years from the date of filing.

Can all my debts be discharged in bankruptcy?

Most unsecured debts, such as credit card balances and personal loans, can be discharged. However, some debts like student loans, child support, recent taxes, and criminal fines usually cannot be eliminated.

How do Connecticut's bankruptcy exemptions work?

Connecticut allows you to choose between federal and state exemption lists. Exemptions protect specific property from being taken during bankruptcy. Which list is best depends on your assets and circumstances.

Can my spouse’s assets be affected if only I file for bankruptcy?

In most cases, only your assets and debts are addressed if you file alone. However, if you own property jointly, or have joint debts, your spouse may be affected.

What are the required steps before filing for bankruptcy?

You must complete a government-approved credit counseling course within 180 days before filing. After filing, a debtor education course is also mandatory before debts are discharged.

Can I file for bankruptcy more than once?

You can file multiple times, but there are waiting periods between successful discharges under the same or different bankruptcy chapters. Consult an attorney for details based on your situation.

Additional Resources

• United States Bankruptcy Court, District of Connecticut: Provides official information, forms, and court locations.
• Legal Services Organizations such as Connecticut Legal Services and Statewide Legal Services of Connecticut provide free or low-cost help to eligible individuals.
• Connecticut Bar Association: Offers lawyer referral services and educational materials on bankruptcy.
• Government agencies like the U.S. Trustee Program provide oversight and information about the bankruptcy process.
• Nonprofit credit counseling agencies, certified by the Department of Justice, offer required pre-filing credit counseling and post-filing debtor education.

Next Steps

If you are considering bankruptcy in Connecticut, start by gathering information about your debts, assets, income, and expenses. Consider speaking with a qualified bankruptcy attorney who understands Connecticut and federal law. They can help you explore your options, assess which type of bankruptcy may be best, and guide you through the filing process. Before filing, remember to complete the required credit counseling course. If you meet certain income requirements, you may qualify for free or reduced-cost legal assistance. Take prompt action to prevent creditor actions, protect your rights, and work towards a financial fresh start.