Bankruptcy New London CT: Ch.7 & Ch. 13 Bankruptcy Attorney

Are you tired of harassing phone calls from collection agencies? Have you taken out a second or third mortgage on your home? Are you barely making the minimum payments on your credit cards? If you answered yes to any of these questions it's time to get professional help. With talk of the "fiscal cliff" and "debt ceilings" raising anxiety among people in debt now is your chance to finally do something about it. Bankruptcy Attorney Chris Carrozzella has over 25 years experience helping individuals in Connecticut get out of debt and better plan their financial future. If you live in New London and have had it with mounting debt and rising interest rates contact Chris Carrozzella today.

Ch. 7 Bankruptcy

There are two options for filing an individual bankruptcy, a Ch. 7 filing and a Ch. 13 filing. In the case of Ch. 7, most of you unsecured debt can be eliminated. This is the route most often recommended for people with little or no assets. Unsecured debt includes credit cards, medical bills and most personal loans. While eliminating debt, Ch. 7 is designed to help protect you from losing property such as homes and cars. Without a Ch. 7 filing these items can face foreclosure and repossession. A benefit of a Ch. 7 filing is that by law credit collectors are no longer allowed to call you and this simple act alleviates a lot of stress and anxiety. Once filed you can start to reestablish your credit and while your interest rates may be higher than before you can still go ahead and purchase a new home or car.

Ch. 13 Bankruptcy

The other option for individual bankruptcy is Ch. 13. In this case the debtor agrees to pay back all or a portion of their debts over a period of time (usually 3-5 years) and that is why this is also referred to as a reorganization bankruptcy. People who choose a Ch. 13 filing have to prove to the bankruptcy courts that they have the income to meet your payment obligations. There are some stipulations in Ch. 13 filings that may make a debtor ineligible. These conditions may include: an income that is too low to meet payment obligations, having over $1,010,650 in secured debts and $336,900 in unsecured debts. Secured debts give the creditor the right to take property, including homes and cars, if you fail to meet your debt payment. People looking to file a Ch. 13 bankruptcy will also have to receive credit counseling from an agency approved by the United States Trustee's office.