Alleviates Debts By Filing Chapter 7 Bankruptcy

Has your debt become unmanageable? Are you overwhelmed? Are you receiving harassing phone calls from creditors at work and home? Do you need to protect your assets and discharge your debts?
The decision to file bankruptcy is always challenging. However, there are cases when protecting your home and assets can only be achieved using bankruptcy laws. You should seek the professional advice of a known Connecticut bankruptcy lawyer at the Law Offices of Jason L. McCoy, LLC to discuss your options.
If you are experiencing financial distress or if you have lost your job and are facing the possibility of losing your house or car, a Connecticut bankruptcy lawyer at the Law Offices of Jason L. McCoy, LLC can help you alleviate your debt by filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Chapter 7 bankruptcy is the swiftest and most common type of bankruptcy. If approved, Chapter 7 bankruptcy completely discharges, or “liquidates,” unsecured debt by selling all non-exempt assets and property to repay creditors at once rather than an extended repayment period. Most are filed as “no asset” cases when assets are not valuable enough to repay creditors.
Chapter 7 bankruptcy typically applies to those struggling with debts and finances and offers a way to “start over” debt-free. Eligibility requirements for Chapter 7 bankruptcy include:

• Completion of an approved credit and debt counseling no more than 180 days before filing.
• No Chapter 7 bankruptcy filings within the previous eight years or Chapter 13 filings in the last six years.
• Completion of an 181-day waiting period to refile if your case was dismissed.
• Completing a financial scrutiny test affirming that the previous six months’ average monthly income is less than the state median income for the same-size household or passing a means test of your disposable income is sufficient to make partial repayments.

Most unsecured debts are discharged through Chapter 7 bankruptcy, such as credit card balances, mortgage or auto loans, medical bills, or personal loans. Certain debts are considered non-dischargeable in Chapter 7 bankruptcy, such as back taxes, child support, alimony, or student loans.

There are advantages and disadvantages of filing for Chapter 7 bankruptcy.
Advantages of Chapter 7 bankruptcy include:

• A complete fresh start.
• Immediate protection against debt collection efforts and wage garnishment.
• Retain earned wages and acquired property after filing.
• No minimum debt required.
• The process is complete in three to six months.

Disadvantages of Chapter 7 bankruptcy include:

• Lose all non-exempt property and assets.
• Stay of foreclosure is only temporary.
• Co-signors are still accountable.
• Must wait eight years to file if a prior bankruptcy was granted.

Do not delay in addressing your debt. If your financial situation has gotten out of hand, contact a Connecticut bankruptcy lawyer to learn more.

Chapter 13 bankruptcy is a court-ordered procedure that resolves debt and enables you to gain control of your finances, future, and life by reorganizing debts rather than liquidating assets. Chapter 13 bankruptcy typically retains secured assets with more equity, such as a house. This type of bankruptcy is also called a “wage-earner’s bankruptcy” because filers are typically employed with steady income.
A Chapter 13 bankruptcy filing initiates an immediate cease, known as an “automatic stay,” of debt collection efforts and home foreclosure. It allows you to develop a plan to repay all or part of the debt in order of importance over a three-to-five-year period as if no default occurred.
You may qualify for Chapter 13 bankruptcy if you retain any source of income. Most qualified filers are behind on mortgages and bills due to unexpected reasons, such as losing employment or a sudden illness that prevents working.

There are advantages and disadvantages of filing Chapter 13 bankruptcy.
Advantages of Chapter 13 bankruptcy include:

• Filing can occur at any time and repeatedly.
• Stops home foreclosure and allows an opportunity to sell.
• Retain all property and assets.
• Creates a repayment plan.
• Debts can be reduced.
• Immediate protection against wage garnishment and debt collection efforts.
• More types of dischargeable debts.
• Co-signers are immune from the creditor collection effort.
• Protection against foreclosure.
• Additional payment time for non-dischargeable debt, such as taxes or child support.
• Separate creditors by class based on percentages of payment.

Disadvantages of Chapter 13 bankruptcy include:

• Debt will continue during the three-to-five-year payment plan period.
• Income and cash are tied up during the payment plan period.
• Higher legal fees.
• Three-to-five-year involvement in the bankruptcy court process.

Depending on your situation, you can file Chapter 7 bankruptcy or Chapter 13 bankruptcy to obtain relief from your financial obligations. The Law Offices of Jason L. McCoy, LLC has designed this website to familiarize you with the consumer bankruptcy process.

Whether or not to file for bankruptcy is a tough decision that will affect your credit report for seven to 10 years following the discharge of debts. Factors indicating that you may need to file for bankruptcy include:

• If your unsecured debt totals 50 or more percent of your annual income.
• Paying all debts exceeds five years.
• You have little to no disposable income.
• Your monthly income is below the state median.
• Your debt is affecting all aspects of your life.

If any of these factors apply to you, speaking with an experienced bankruptcy lawyer is advised. Your lawyer can assess your finances, explain the process, and whether filing for Chapter 7 or Chapter 13 is your best option to overcome your current financial hardships.

Jason L. McCoy, Esq. knows how to help you manage a personal bankruptcy. Bankruptcy laws have changed in recent years, and the Law Offices of Jason L. McCoy, LLC concentrates on helping individuals and families restructure their debt. Working with our team may be the best option if you want to get a fresh start on your finances, pay your bills on time, and stop wage garnishments.

Find out today if bankruptcy is right for you. Speak with a Connecticut bankruptcy lawyer at the Law Offices of Jason L. McCoy, LLC. Call us at 860-872-7741 or complete our online form to schedule a free consultation. Located in Vernon, New Haven, and Waterbury, Connecticut, we serve clients in Tolland County, New Haven County, and Hartford County. We are a debt relief agency and help people file for bankruptcy relief under the Bankruptcy Code.