Bankruptcy in Connecticut is a legal process through which some of the debts of an individual or a business are absolved (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult procedure. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Connecticut bankruptcy Lawyer can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your particular case.
Types of Bankruptcy in Connecticut
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Connecticut will be the same as everywhere else in the United States. There are 2 basic forms of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy usually used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
In Connecticut, Chapter 7 bankruptcy is known as "liquidation." When a person files for Chapter 7 bankruptcy, a trustee is appointed by the bankruptcy court to do an accounting of the debtor's property. The trustee then determines what pieces of property, if any, should be sold off to pay off the debts. Many forms of property are exempt from forced sale up to a certain dollar amount, including houses, cars, and retirement accounts. Once the property is sold, any remaining dischargeable debt is eliminated. Chapter 13 bankruptcy involves restructuring, rather than discharging, one's debt. Essentially, the court structures a debt repayment plan meant to allow the debtor to pay off his or her debt in manageable installments, while allowing the debtors to eventually collect at least some of what is owed to them.
Chapter 11 bankruptcy, like Chapter 13, involves reorganization of debt. However, it is almost always used by businesses, and not individuals. After filing for Chapter 11, the debtor has to come up with a repayment plan. The plan must then be approved by a majority vote of participating creditors.
How Can a Connecticut Bankruptcy Lawyer Help?
Filing for bankruptcy is a major decision. While it can be beneficial, it's virtually guaranteed that there will be some negative consequences, such as damage to one's credit. Of course, with the advice of a Connecticut bankruptcy Lawyer, it's possible that you will find the benefits to outweigh the costs, but only a bankruptcy Lawyer can help you make that decision.
Interesting Facts About Connecticut
Connecticut was one of the original colonies of America and played a pivotal role in the formation of the country's federal government. It is usually referred to as "the Constitution state", as many of Connecticut's early governance documents helped to shape the U.S. Constitution. Former President George W. Bush was the first president to be born in Connecticut.
Connecticut is often associated with some very major court decisions that have shaped American jurisprudence over the decades. One famous case is Griswold v. Connecticut (1965), which involved the right to privacy in the context of marriage and the use of contraceptives. Another landmark decision is Kerrigan v. Commissioner of Public Health (2008). In the Kerrigan case, the Connecticut Supreme Court ruled that gay and lesbian couples may not be prohibited from marriage. This made Connecticut the third U.S. state to legalize marriage for same-sex couples.
The majority of lawsuits in Connecticut are filed in the Superior Court system, which is comparable to the trial courts of most other states. However, Connecticut laws can often be different from the major trends in the rest of the states. In some instances a lawyer may be necessary when applying Connecticut laws.
In order to meet the needs of state residents, lawyers in Connecticut deal with a very wide range of legal issues. Connecticut lawyers help continue the state's tradition of shaping the character of American law in general. Attorneys in Connecticut assist clients in court and can provide valuable legal advice.