How to File for Bankruptcy in Connecticut

Connecticut has had one of the lower bankruptcy rates in the nation, but that does not mean her citizens are not suffering with the financial misfortunes of our day.  In fact, the number of filings has nearly doubled in the last two years, as has the unemployment rate.  In such an economy, many people are considering their option, which includes learning if and how bankruptcy can help.

Finding a Bankruptcy Attorney

One of the most important first steps is to find a skilled bankruptcy attorney who can advise consumers concerning how they might benefit from filing for this type of help.  The process is complex and detailed, and there are many hidden benefits to each type that the general debtor may not be aware of.  Taking the time to gather recommendations from those who have used a prospective attorney, conduct interviews, and do research online to learn what kind of reputation they have before retaining anyone is a vital part of this important task.

Bankruptcy Options

By far the majority of Connecticut citizens who have filed for bankruptcy have chosen Chapter 7, by which those with few assets may have many of their debts discharged, with exemptions protecting much of their personal property.

Others choose Chapter 13 bankruptcy to obtain a plan to pay back all their debt, but more slowly and with smaller monthly payments.  They can retain their property and see the end of debt, generally in three to five years.

Connecticut Exemptions

For the 88% of those filing bankruptcy who choose Chapter 7, there are federal and state mandated exemptions they can claim to protect their home and property from liquidation.  Connecticut residents may claim either state or federal exemptions, although they cannot mix them.  The state exemptions debtors may claim include:

Filing the Petition

Once a debtor and their attorney determine the appropriate type of bankruptcy to file and the consumer has completed their required credit counselling, the petition is filed and the court puts a stay, or hold, on all debt collection.  The court then processes the petition, the bankruptcy trustee investigates and administers a plan for the bankruptcy, and the creditors are informed of that plan in a required 341 hearing.  Once the bankruptcy proceeding is complete, the Chapter 7 filer is relieved of their debts to start again, and the Chapter 13 filer is required to maintain their payments in order to retain their property.