If you are like many people in Connecticut, you automatically assume that in a bankruptcy, some of your assets might be lost. This may happen if you file for a Chapter 7 bankruptcy but there is another type of consumer bankruptcy that may provide greater protection for your home, vehicle and other assets. That is the Chapter 13 bankruptcy.
Since you have discovered that your growing debt is creating extreme difficulties in your ability to repay your lenders on time, you have considered filing for bankruptcy in Connecticut. With your decision made, you are now working to file your claim and hear the outcome of your request. Understanding the information that is required for your claim to be considered is important to save yourself time by completing the documentation correctly from the start.
If you have filed for Chapter 13 bankruptcy in Connecticut and went through the process of setting up your plan, then you are now ready to put the plan to use. What you do after you file is very important. It will greatly affect your finances and your business if you do not follow the plan. The US Courts notes there are a few things that you need to keep in mind as you continue forward in the bankruptcy process.
If you are one of the many Americans who are overwhelmed with credit card bills, medical expenses and mortgage payments, you may have considered bankruptcy as an option to gain financial freedom. In fact, bankruptcy may help you manage and eliminate your debt, while enabling you to keep your home and other possessions. Under Chapter 13 bankruptcy, there are steps you can take to make your debt payments more manageable and get out from under the reign of bills and expenses.
You might be confused regarding some of the recent changes in both the District of Connecticut and the federal chapter 13 bankruptcy procedures, most notably the revised forms. Your new document requirements are part of an ongoing initiative by the Advisory Committee on Bankruptcy Rules, a program which began in 2008 and, more recently, had a significant milestone in 2015 with a national overhaul of various forms. Once again, as of this December, this program might require you to complete new versions of previously completed forms.
Individuals who are burdened with personal debt and fear being cleaned out by creditors or are looking for alternatives to foreclosure may see filing for Chapter 13 bankruptcy in Connecticut court as an attractive option. While Chapter 13 presents clear benefits, this form of bankruptcy is not open to everyone. Anyone seeking to file Chapter 13 must meet certain criteria.