Connecticut Chapter 13 Bankruptcy:  Reorganize Your Debt & Repair Your Credit

If you are considering bankruptcy due to massive bills and the inability to meet your obligations, but earn more than the limit set forth in the Chapter 7 means test, you may need to consider filing a Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, which is known as a liquidation bankruptcy, one typically has most of their debts discharged. Discharge removes all obligations to pay back the debts which were included in your bankruptcy.

A Chapter 13 bankruptcy, however, reaffirms the debts you have, but allows you to pay them back over time, and sometimes even reduces the balance due and owing on the debts. It is not a full repayment, and the schedule will be based upon your disposable income. A regular source of income is usually required by the rules in order for the trustee and the court to approve a schedule of payments which you can comply with.

Get Relief from Second Mortgages and Save Your Home

The Connecticut law practice of The Woods Law Firm, LLC is experienced in helping debtors restructure their debts and can assist with devising a repayment schedule. The schedule is known as a Chapter 13 reorganization plan. Typically, your attorney will draft a plan explaining to the court and your creditors how you intend to repay the debts and clear your record of debt.

As long as all payments are made on time, you are protected from any collection efforts. Payments are made directly to the trustee that is appointed to your case to oversee disbursement of funds to the individual creditors. One advantage of a Chapter 13 bankruptcy is the real possibility of having a second mortgage on your home released, if the value of your home is less than the amount owed on your first mortgage. This may also apply to third mortgages and home equity lines of credit.


To find out more about how we can help you in your bankruptcy, contact our firm for a evaluation of your situation. Contact a Hartford County bankruptcy attorney from our firm now.