Each day, more and more people find themselves entangled in a web of financial issues. Of course, paying off debts and saving money would be the perfect solution to these issues, but for the majority of people this is something that they just can’t do. For these people, filing Bankruptcy in Hartford, CT is a solution to their problems. Fortunately, there are professionals out there that can assist you with filing, such as those at the Jefferson Hanna Law Firm. However, before you are ready to file, you first need to determine what form of bankruptcy is best suited for your specific situation. The most common forms of Bankruptcy in Hartford, CT include Chapter 7, Chapter 11 and Chapter 13. Here is a little bit of information on each.
Chapter 7
Chapter 7 is the most commonly filled type of bankruptcy. It is sometimes referred to as liquidation or straight bankruptcy because it helps to eliminate debt by liquidating all assets, such as property or vehicles. However, depending on the exemptions filed, an individual can save their home from being a part of the liquidation. In order to determine if this option of bankruptcy is best suited, you are generally required to complete a financial interview first.
Chapter 11
Chapter 11 is another form of Bankruptcy in Hartford CT filing option. However, it is generally reserved for use by businesses. With this option a business can reorganize their debts into a form that will be much easier to pay off or in order to renegotiate the original amount of the debt. Doing so allows the doors of the business to remain open while they attempt to correct their financial situation.
Chapter 13
Chapter 13 is the second most frequently used form of Bankruptcy in Hartford CT and it is sometimes referred to as reorganization. With this option, the court system will appoint a trustee who is responsible for organizing a repayment plan that is suitable to the debtor as well as all the creditors that are requiring repayment. These payment schedules generally come in the form of a monthly payment plan. The major difference between a Chapter 7 or Chapter 13 is that the debts are not dismissed, instead the debtor is required to make payments until the debt is considered satisfied.
