Connecticut Chapter 7 Bankruptcy

Filing for bankruptcy is never an easy decision. The process can seem intimidating, particularly if you have never filed for bankruptcy before. In Connecticut, Chapter 7 bankruptcy tends to be the simplest type of bankruptcy.

Chapter 7 is accessible to individuals and corporations. In most consumer cases no assets are lost because they are exempt, or protected from the bankruptcy estate. In a Chapter 7 bankruptcy, a court-appointed trustee sells only non-exempt property in order to pay your debts back to creditors.

Chapter 7 eligibility

According to federal law, people who file for Chapter 7 bankruptcy in Connecticut must submit to a means test, which determines whether you qualify. If your income is less than the average household income, you will qualify. Even if your income is greater you may still qualify depending on a number of factors.

You might not be eligible for a Connecticut Chapter 7 if any of the following situations apply to you:

You have filed a Chapter 7 or 13 in the past eight or six years, respectively
You were dismissed from a previous bankruptcy within the past 180 days

Regardless of your situation, you should consult qualified Connecticut bankruptcy lawyers to thoroughly explore your legal options.

Filing Chapter 7

The first step to Chapter 7 involves special pre-bankruptcy credit counseling, then filing a petition and statement of financial affairs with the court. These forms require a list of your creditors and the debts you owe them as well as the following details:

Your income: source, amount, and frequency
List of your properties
An account of your monthly living expenses

You must pay a fee of $299 when you turn in the documents. Immediately after you file, creditors may not pursue collection of your debts unless debt is later found nondischargeable by bankruptcy litigation.

341 Hearing

The trustee will hold a meeting called a “first meeting of creditors,” also known as a 341 hearing, between 20 and 40 days following the filing of your petition. The trustee will question you under oath regarding your property, debts, and income.

It is crucial to maintain a cooperative and respectful attitude towards your trustee. Following the 341 hearing, your creditors have 60 days to bring a legal action in the Bankruptcy Court to persuade the court that you should not be permitted to eliminate your liability on, or “discharge,” your debts.

Coan, Lewendon, Gulliver & Miltenberger, LLC is a law firm based in New Haven that focuses on Chapter 7 in Connecticut. With 28 years of experience, we have built a reputation for providing clients with the legal advice and thoughtful support they need throughout the bankruptcy process.