Debt is not something that people can ignore. They may think that since they have no home or savings that a credit card company can’t get anything from them. If they have a job, the credit company can file a lawsuit to ask the court to garnish a person’s wages. Working with a Bankruptcy Attorney in Hartford, CT is a much smarter strategy. The lawyer can develop a strategy that preserves as much of the person’s wealth as possible.
The staff at the Jefferson Hanna Law Firm will help a debtor decide if they should file a Chapter 7 or Chapter 13 bankruptcy petition. Recent federal regulations limit who can use the popular Chapter 7 process. Anyone who makes less than the median income in the state of Connecticut can use it. It’s known as the “Fresh Start” bankruptcy. A court-appointed trustee sells off all of the debtor’s non-protected assets. He then divides the proceeds among the creditors. Once this is done, the all the person’s debts are released. The Bankruptcy Attorney in Hartford, CT will appear at a creditor’s meeting with the debtor to make sure all debt is included in the bankruptcy process.
If a person makes too much money to use Chapter 7, their Bankruptcy Attorney in Hartford, CT will recommend that they file under Chapter 13. This is a much longer process. The bankruptcy trustee assesses the debtor’s income and living expenses. They are then put on a budget. The trustee uses all the income above the basic budget to pay off creditors each month. This process can last up to five years. Once the debtor has completed the entire period, all of their debts are discharged. If they fail to complete even the last month, none of the remaining debts will be forgiven.
The Bankruptcy Attorney in Hartford CT will protect the assets in a Chapter 7 bankruptcy. He will make sure that none of the protected assets, such as a person’s home, are sold. In a Chapter 13 bankruptcy, he will make sure that the person has enough money to live each month. It’s important for a debtor to have this type of assistance. They bankruptcy trustee is more concerned about paying off creditors than helping the debtor restart their live successfully.