Whether one qualifies for personal bankruptcy depends on a host of factors that may change month by month. I will cover some of the basics that should give you an idea if you qualify. It is important to consult with an experienced Connecticut bankruptcy attorney, as local rules and laws differ from state to state.

There is a difference between Chapter 7 bankruptcy and Chapter 13. In a chapter 7 case the debtor is discharged completely of his / her legal obligation to repay all dischargeable debts. Most individuals will be able to use the Federal or State exemptions to protect their exempt property. Almost all of my clients have kept all of their property in Chapter 7.

To qualify for Chapter 7, we look at the debtor’s net income and necessary monthly expenses (This does not include unsecured debts such as credit cards and medical bills). If there is no or negligible disposable income after these expenses, we determine if the debtor is at or below the state medium income for their household size. If the debtors’ household income is greater than the state medium income, we perform the “means test”. If we can satisfy the means test the debtor qualifies.  If the income is below the state medium income, the debtor would qualify without the need for the full “means test”

In Chapter 13 the debtor will repay as much of her / his unsecured debt as possible over a period of not more than 5 years. To qualify for Chapter 13, the debtor needs to establish that their income is sufficient to pay all of their necessary expenses plus contribute to the unsecured debt, pay the Bankruptcy Trustee’s fee, any administrative costs and have a reasonable cushion for themselves. Other factors sometimes apply as well.

There are many other factors that have to be considered. Below are a few:

• An individual who received a chapter 7 discharge less than 8 years ago, does not qualify to file chapter 7 again until the 8 years expires.
• Certain debts are not dischargeable in bankruptcy, such as domestic support obligations, most student loans, debts for death or injury caused by the debtor’s operation of a motor vehicle while intoxicated from alcohol or drugs and others listed in the article “Bankruptcy Discharge – What Debts Are Relieved And What Are Not”. If these non-dischargeable debts make up a significant portion of a debtor’s entire debt, bankruptcy may not offer the financial relief sought. In this case we will review other non-bankruptcy options.
• If the equity in personal and / or real property exceeds the exemption allowed, the debtor could be at risk of losing such property. The debtor will have to determine if the benefit of being relieved of her / his debt outweighs the loss of unprotected property. Non Bankruptcy options will also be considered.

It is rare, but sometimes bankruptcy may not be advisable even if the debtor(s) otherwise qualify. No two debtors’ circumstances are exactly the same. The Law Offices Of Bellenot & Boufford, LLC have more than 26 years of experience and are qualified to help you make the correct decision for you and your family’s financial future and quality of life. Contact us if you are considering bankruptcy so you can make the right decision.

Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.

 

 

 

Chapter 7 Bankruptcy will discharge debts that are not excluded pursuant to the Bankruptcy Code. A Bankruptcy discharge enjoins creditors from ever collecting on the discharged debt. Creditors are also prohibited from taking any and all collection action from the date of filing, even prior to discharge entering.

The following is a list of common debts that are discharged in Chapter 7 Bankruptcy:

• Credit cards
• Medical bills
• Past due utility bills
• Property leases, however you will have to vacate if you do not make rental payments
• Most accident / injury claims
• Personal loans
• Income taxes for tax years that are more than 3 years old (Other timing requirements apply)
• Business debts
• Most civil court judgments
• Mortgage notes and car loans / leases (However the collateral is not discharged so you will have to eventually return the property of you do not keep the loan / lease current)

The following is a list of some debts that are not discharged in Chapter 7:

• Alimony and child support
• Income taxes that do not qualify for discharged as noted above and most other taxes
• Most student loans
• Debts for personal or property injuries that resulted from the willful and malicious acts of the debtor
• Debts for most fines, penalties, forfeitures, or criminal restitution obligations
• Debts for death or injury caused by the debtor’s operation of a motor vehicle while intoxicated from alcohol or drugs
• Debts incurred by fraud or false pretenses

 If you feel that you are overwhelmed by bills and need to know what would be affected in a bankruptcy discharge, it’s good to meet with a Bankruptcy Attorney that serves Danbury, Connecticut and all of Fairfield and New Haven Counties.

The United States Constitution and Federal Law set public policy and allow qualified persons the benefits of debt relief through bankruptcy every eight years. The Bible allows for a release of debts every seven years.

You have a moral obligation to support yourself and your family in a reasonable manner. That should trump any obligation to your creditors. There is no moral high ground to suffering for decades. Yes, if you have the ability to repay your debts in a reasonable time, you should do so. But if you and your family are struggling, living with stress and it will take 20, 30 or 40 years to pay off a credit card, remember, you have the legal right and obligation to your loved ones to provide a better quality of life.

“At the end of every seven years you shall grant a release of debts. And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the LORD’s release” (Deuteronomy 15:1-2).

The United States Constitution Article 1, Section 8, Clause 4 States: “The Congress shall have power… To establish … uniform Laws on the subject of Bankruptcies throughout the United States;”.

Congress does provide you the right to file bankruptcy pursuant to Title 11 of the United States Code. You have the moral, constitutional and legal right, if you qualify, to file for bankruptcy protection and provide a better life for your family.

Talk to a Bankruptcy Lawyer

And … Do You Know Who Filed For Bankruptcy?

Did you know that these individuals all filed for bankruptcy?

Thomas Jefferson – founding father, author of the Declaration of Independence & 3rd president of the United States * Abraham Lincoln – 16th president of the Unites States filed bankruptcy twice * Ulysses S. Grant – 18th president of the United States * William McKinley – 25th president of the United States * George McGovern – Presidential candidate * John Conally – The Texas governor who was riding with President John F. Kennedy at the time of his assignation ……………

Walt Disney, Rembrandt, P.T. Barnum, Mark Twain, Oscar Wilde, Henry John Heinz of Heinz ketchup, Milton Hershey of Hershey’s chocolate, Henry Ford, J.C. Penney, Mickey Rooney, Debbie Reynolds, Johnny Unitas, Dorothy Hamill, Bjorn Borg, Jerry Lee Lewis, Burt Reynolds, Sherman Hemsley – actor who played George Jefferson, Gary Busey, Nicholas Cage, Kim Basinger, MC Hammer, Willie Nelson, Larry King, Donald Trump – filed two separate Chapter 11 for his hotels/casinos, Mike Tyson, Joe Lewis – boxer, Warren Sap – NFL football player, Terrell Owens – NFL football player, Leon Spinks – boxer, Stephen Baldwin – actor, Jose Conseco – MLB baseball player, Vince Neil – lead singer of “Motley Crue”, 50 Cent – Rapper, Marvin Gaye, Meat Loaf, Cyndi Lauper, Francis Ford Coppola, Curt Schilling And countless others all filed bankruptcy.

The Attorneys and staff at Bellenot & Boufford, LLC are happy to answer your questions and concerns. We can show you how to improve the quality of your family’s life.

Please contact us at Law@BBesq.com / 203-304-9050 if you feel you may qualify for bankruptcy

Bankruptcy Lawyers for Danbury, Connecticut and all of Fairfield and New Haven Counties.

 

There are different forms of wage garnishments, including IRS and other government levies. This article will discuss wage garnishment in Connecticut relating to individual civil court judgments.

Prior to a Wage Garnishment

Prior to attaching wages, a creditor needs to commence legal proceedings against a debtor and obtain judgment. When the court renders judgment in favor of a creditor, it usually sets a weekly payment amount and the date that the debtor must begin making payments. In many cases, the court will order nominal payments of $35.00 per week. It is important to note that if the total judgment is large enough and the court allows post-judgment interest, $35.00 a week may not be sufficient to cover the interest.

If the judgment debtor makes her / his weekly installments, there should be no wage attachment. If the debtor misses a weekly payment, the creditor can apply to the court for a wage execution. Once the court signs the execution it is usually given to a State Marshal who will serve the execution on the judgment debtor’s employer. If this happens, the debtor will not only be responsible to repay the balance of the judgment, but the application fee and Marshal fees. Furthermore, the employer may be required to take 25% of the debtor employee’s disposable earnings, not just $35.00 per week.

Stopping a Wage Garnishment

There are limited ways to stop a wage garnishment. The best way is to avoid the garnishment in the first place. Be proactive, seek a bankruptcy attorney and get legal advice to help you make the right decision. It is my experience that most wage attachments occur because the debtor didn’t understand the process of what needed to be done and when. In other cases, the debtor ignored letters, pleadings and notices from the creditor and the court.

The debtor can attempt to work out a voluntary agreement with the creditor. However, most creditors will refuse to cooperate, especially if the debtor has previously missed a payment. Again, being proactive may help avoid the attachment and it costs and consequences. As soon as the debtor knows he / she cannot make the payment, they should call the creditor or it’s attorney and ask for a forbearance.

Bankruptcy and Wage Garnishments

Bankruptcy will not only stop a wage garnishment, but in most cases it will also discharge the debtor’s obligation to pay the entire balance due on the judgment and all other dischargeable debts. Many people don’t like the idea of filing bankruptcy, but debtors in this situation should immediately seek a bankruptcy consultation regardless of their feelings. In most cases when a debtor qualifies for bankruptcy relief, it is the best decision to improve the debtor’s family’s quality of life. It is also the fastest means of restoring the debtor’s credit. Anyone in a difficult financial position should at least learn the pros and cons of bankruptcy from an expert.

Modifying a Wage Garnishment

If a debtor is unable to stop the garnishment, they can ask the court to modify the attachment. The court will modify an attachment if the request is reasonable.

The worse thing anyone can do is being passive and not address a law suit or any of the proceedings that follow. Open mail and read every document received. Get advice, be informed and this will limit the potential damage that can happen.

Get a free consult from Bellenot & Boufford – Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.

Debt impacts your credit score, even if you have never been late on a payment. If you have excessive debt or are slow in paying, this will impact many areas of your life. The bankruptcy lawyers at Bellenot & Boufford, LLC can help you to get your debt in control. If you qualify, Bankruptcy is usually the best, most efficient and effective way to get your debt in control. However, we can also help you analyze non-bankruptcy alternatives. If you are even a little concerned about your debt, this is the time to gather information to help you be in control of your financial future.

Many people tell us, “I am not looking to buy a home or car and I don’t want any new credit cards. I don’t plan on using my credit anytime soon so I am not worried about my credit score right now.”

Consider this ….

Your Credit Score not only impacts your ability to obtain credit, but many other aspects of your life and the premiums you pay for many common services…

Mortgage Payments • Home Rental • Car Loans • Insurance Premiums • Employment & Salary • Cell Phone • Credit Cards • Utility Service • Government Assistance and Licensing • Security Clearance, and more

Your credit report and FICO score impacts your life and budget, even if you do not plan on borrowing money or applying for a credit card. If you have less than an excellent credit score, you can reduce your insurance premiums by improving your credit score. Life is full of unexpected twists and turns and you never know when you will need your credit score to be as good as possible … immediately.

If your car is totaled in an accident or it otherwise breaks down, you will need to replace it. You want your FICO score as good as possible if and when this happens. You will need to qualify for a car loan or lease. You will certainly want the best rate and terms possible. This is not the time to start the process of resolving your debt and improving your credit. You need good credit on the spot. You want to qualify for the best terms immediately.

Everyday someone loses their job without warning. If this happens you will need to start looking for a job ASAP. Most employers review your credit report and FICO score. Your credit report can be the difference between getting a job or not, and sometimes, the salary that will be offered. The same applies if you plan on a career change in the future. This is not the time to begin the process of restoring or improving your credit.

You need a good, and probably a great FICO Score on a moment’s notice. You need to resolve your debts to help build your credit score. Bellenot & Boufford, LLC can help you get your debt in control allowing you to improve your credit so you are ready when you need it.

Contact Bellenot & Boufford, LLC for more information on your financial options including bankruptcy.

Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.