Bankruptcy Attorney in Hamden, Connecticut

Facing financial challenges can lead to sleepless nights and constant stress. The decision to file for bankruptcy can be a first step toward relief from debt and a fresh start. To learn more contact Sacramone Law, a compassionate and experienced Hamden, Connecticut, bankruptcy law firm to schedule a free initial consultation.  

At Sacramone Law, I offer comprehensive bankruptcy legal services. I have over 30 years of experience successfully guiding individuals and businesses from Hamden, Connecticut, and surrounding areas through a Chapter 7, Chapter 13, or Chapter 11 bankruptcy. Whether you're overwhelmed with credit card debt, facing foreclosure and want to save your home, or simply need a way out of financial distress, my firm is here to empower you with the legal advice and support you need. 

Understanding Bankruptcy in Connecticut

Connecticut's bankruptcy laws adhere to federal guidelines, offering three primary chapters of bankruptcy for individuals:

• Chapter 7: This bankruptcy chapter allows you to discharge most debts and keep property that is exempt, including your home depending on its value.  

• Chapter 13: This bankruptcy chapter allows you to keep your home and personal property and receive a discharge after paying a portion of your debt over time, usually three to five years. Chapter 13 can also be used to stop a foreclosure and provide a mechanism to cure a mortgage arrearage.

• Chapter 11: This chapter is mostly used by businesses, although also available to individuals, allowing for reorganization or discharging of debts. 

Eligibility for filing bankruptcy in Connecticut is generally based on income, expenses, and amount of debt. 

The Role of a Bankruptcy Attorney

A bankruptcy attorney is more than a legal representative in a courtroom—they are a consultant and a guide.  

As your bankruptcy attorney, I will help you understand your financial predicament and explore all available options, not just bankruptcy. I work to help create a narrative that shows your unique situation for the court. I also am here to be the middle ground between you and the various parties involved in the legal process. 

The Bankruptcy Process

Before filing for bankruptcy, it’s crucial to undertake mandatory credit counseling and assess which chapter of bankruptcy suits your needs best. This is a defining moment to have an attorney by your side to weigh the pros and cons with a clear, legal eye. 

Once you do this, here are your next steps:  

1. Filing the Petition. The bankruptcy process begins with filing a petition in a Connecticut bankruptcy court. The petition will include financial information, a list of assets and liabilities, current income, and living expenses. 

2. The Automatic Stay. Once the bankruptcy petition is filed, an automatic stay is issued, preventing most creditors from continuing collection efforts during the bankruptcy process. 

3. The Meeting of Creditors. Shortly after filing, the debtor and their attorney must attend a meeting of creditors, where creditors have the opportunity to ask questions about the bankruptcy and the debtor's financial affairs, under oath. 

4. The Confirmation Hearing. For Chapter 13 filings, a confirmation hearing is scheduled where the court will approve or disapprove the debtor's repayment plan. 

5. The Discharge. The culmination of the bankruptcy process is the discharge, which effectively eliminates the debtor's legal obligation to pay back certain debts.  

6. Rebuilding Your Credit. Bankruptcy may hurt your credit score temporarily, but it isn't the end; you can rebuild your credit by making smart financial choices.  

Bankruptcy is not a magic wand that erases all financial obligations. It’s vital to set realistic expectations about what the process entails and what outcomes one can expect. With experience on my side, I work to help you find a realistic plan to be prepared for the road ahead.  

Post-Bankruptcy Advice

Emerging from bankruptcy presents a unique set of challenges and opportunities. It's a time for rebuilding and redefining your financial future. The path forward may seem daunting, but with the right strategies, regaining financial stability is within reach. 

• Assess and Adjust Your Budget: The first step post-bankruptcy is to carefully examine and adjust your budget. Understanding your income and expenses is crucial. Crafting a budget that prioritizes savings can protect you against future financial hardships. 

• Rebuild Your Credit: Initially, your credit score will take a hit. Start rebuilding it by applying for a secured credit card or loan with a cosigner. Ensure timely payments and keep credit utilization low. Consistency is key to improving your credit score over time. 

• Learn Financial Management: Use this fresh start as an opportunity to enhance your financial literacy. Educate yourself on managing budgets, saving, investing, and understanding credit. Various resources are available, from online courses to financial advising services. 

• Avoid Future Debt: Stay mindful of acquiring new debt. If using credit cards, pay the balance in full each month. Consider establishing an emergency fund to cover unexpected expenses without resorting to credit. 

• Monitor Your Credit Report: Regularly check your credit report for errors or inaccuracies that could affect your credit score.  

• Seek Professional Financial Advice: Don't hesitate to consult with financial advisors or credit counselors to guide your financial planning. These professionals can offer personalized advice tailored to your specific situation. 

Post-bankruptcy life is an opportunity to reset your finances. With careful planning, disciplined budgeting, and a proactive approach to managing finances, you can lay the foundations for a secure and prosperous future. 

Bankruptcy FAQs 

1. What is the difference between Chapter 7 and Chapter 13 bankruptcy? 

Chapter 7 bankruptcy is a liquidation where non-exempt assets are sold to pay creditors, typically for those with little to no disposable income. Chapter 13 bankruptcy allows individuals with a regular income to develop a plan to repay all or part of their debts over time, usually within three to five years, without having to liquidate assets. 

2. Can I eliminate all my debts by filing for bankruptcy? 

Bankruptcy can discharge most debts, such as credit card debt, medical bills, and personal loans. However, certain types of debts, including most student loans, child support, alimony, taxes owed to government agencies, and criminal fines, are not dischargeable in bankruptcy. 

3. How will filing for bankruptcy affect my credit? 

Filing for bankruptcy will have a significant negative impact on your credit score initially. Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 remains for seven years. Despite this, the reduction in debt can provide a foundation to rebuild your credit over time. 

4. Can I keep my house and car if I file for bankruptcy? 

In many cases, you can keep your house and car in both Chapter 7 and Chapter 13 bankruptcy, depending on the equity you have in these assets and the exemptions you can apply under Connecticut law. Chapter 13 bankruptcy, in particular, offers options to catch up on missed mortgage or car payments. 

5. Do I need to hire a bankruptcy attorney? 

While it's possible to file for bankruptcy on your own, navigating the complicated legal and financial process without expertise can be challenging. A bankruptcy attorney can provide valuable guidance, ensure your paperwork is filed correctly, and represent you in court proceedings. 

6. How long does the bankruptcy process take? 

The duration of the bankruptcy process can vary. A typical Chapter 7 case can be completed in approximately 3 months from filing to discharge of debt. A Chapter 13 bankruptcy usually lasts between three to five years, depending on the length of the repayment plan approved by the court.