Category: Uncategorized

NOTE: The below is general information. I am not an attorney. All legal and financial decisions should be made after consulting with a legal or financial professional.

People in Connecticut file for bankruptcy for a variety of different reasons. There are several different types of bankruptcy that a person could choose to file for, and so there are several different situations prompt a person to make that decision-to finally file for bankruptcy.

Of course it is something that nobody wants to do. After all, who wants to have to? The circumstances in which a person may find themselves in when they’re living in Connecticut and file for bankruptcy are often rather difficult situations to deal with, but luckily bankruptcy is there not only as a last resort, but also a new beginning.

If you consider yourself to be a rather responsible person, it can be rather difficult to make the decision to file for bankruptcy. In Connecticut, you would file for bankruptcy for the same reasons that you would file for bankruptcy anywhere else. As you may know, there are several different types of bankruptcy that a person could file.

Chapter 7 bankruptcy and Chapter 13 bankruptcy are two of the most common types of bankruptcy out there. Although bankruptcy is a federal issue, in Connecticut for bankruptcy with the aid of a lawyer or at least having some type of legal advice to back you up. Depending on the circumstances in which you found yourself applying for bankruptcy, you may or may not find that looking into legal into something that you must do.

When you’re filing for bankruptcy, make sure you do as much research as you possibly can. Explore all other options before filing for bankruptcy, because although it is not that of dead end that many people feel it is, it is a serious thing that must be taken into serious consideration before doing.

Also, in Connecticut file for bankruptcy when you can afford it. If you feel that you need legal aid if you’re not able to afford the legal assistance that will make the experience smooth and beneficial to you, perhaps you should consider waiting until it is a more financially realistic option. Not only do lawyers cost money, but filing bankruptcy also encourage legal fees can be rather hefty as well.

A bankruptcy can stay on your credit report for up to 10 years. While this may seem rather difficult to swallow, those who are usually considering bankruptcy in the first place don’t usually have the best credit history as it is; consider this a new start.

DO: Wait a Few Months Before Filing

Under the law, the burden of proof is on the creditor to show that a particular debt should not be discharged. This means that the debtor doesn’t have to prove that he or she didn’t intend to defraud anybody. It’s up to the creditor to prove that intent. So, how can a creditor get inside the debtor’s head and show that the debtor wanted to take the money with no idea of paying it back? Creditors can show a presumption of fraud by the circumstances surrounding the charges.

For example, they can point to amount and the timing. If you charged more than $500 for luxury goods or services to a single creditor within ninety days of filing, it’s presumed that you didn’t intend to pay it back. The same presumption is made when it’s a cash advance of more than $750 within seventy days of filing. The bankruptcy code doesn’t spell out what constitutes a luxury, but you don’t want to be in a position where that determination is being made by a judge.

Again, the less attention you attract, the better. So in cases where you have made questionable charges, you must hold off on filing until at least 120 days have passed. The extra time is just a little insurance. Filing on the ninety-first day after a big charge might throw up a red flag of its own. Generally speaking, the more time that passes since the charges, the less likely the creditor will object.

Of course, there are times when you can’t wait to file for some reason, for example, to stop a foreclosure or a wage garnishment. But if there is no strong reason to file right away, it’s best to wait a bit.

DO: Pay Something Toward Recent Charges

Those who have charged something large recently, a good advice is that they make some payments to that creditor in the meantime. When the creditor looks at your account, it will look at the recent charges, but it will also look at the recent payments. If you make a large charge right before filing and then make no payments, it will look fraudulent. But if you let some time pass and you make a few payments after the last charges, it looks as if you are indeed trying to pay it back. Think of it as putting an extra quarter in the parking meter. It may not be necessary, but it’s a small price to pay to avoid a larger expense down the line.

At the same time, you probably don’t want to pay those other guys anything. You can probably safely stop paying on your unsecured credit cards. Except for the situation I described above, you’d be throwing your money down a rat hole. It won’t make a whole lot of difference if you manage to send off a $20 minimum payment right before filing. The account will be included in the bankruptcy and it doesn’t matter if the total ends up being $2,476 or $2,456.

Bankruptcy is not an easy process, and especially when you are going through all those problems of debt, you always would appreciate a helping hand that would guide you through all the legalities and everything you don’t know about that process. This is where you should get bankruptcy legal advice from many sources out there so your decision of going for bankruptcy is a wise and well informed one.

Consultation with a Bankruptcy Attorney

This is the best thing you could do for yourself when you are trying to file bankruptcy; hiring a bankruptcy attorney. They are very well informed about all the legal issues and are the best ones to give you bankruptcy legal advice. The laws concerning the bankruptcy and the legalities involved in the process have changed a lot in the last few years. That is the reason why a bankruptcy attorney would be the best place for you to get all the information and help. They will be able to review your case in a professional manner and will be able to give you advice and help that whether you should even go along with bankruptcy or not.

Peruse the Internet to Gather Initial Information

Those of you who cannot find a bankruptcy attorney who would give you free first consultation; you should try getting yourself some initial information on the process and its pros and cons. The World Wide Web is full of information and articles by experts in order to tell you what the bankruptcy procedure is all about, and how you can go along with filing for the procedure even when you can’t afford an attorney. But most of the times it’s just important to increase your know-how on the main issue through the internet initially and then just go through with an attorney on the main process. This will give you the first hand knowledge about the whole procedure, and you would know if the attorney is good or not because of the type of work they do for you.

Financial Books Will Also Provide Bankruptcy Information

There are many financial books written by well known authors which are easily available in many book stores around you. They will give you a lot of insight into this matter and useful tips that will help you go long ways with your problem at hand. It’s also good for novices who don’t know anything about the procedure.

Friends or Relatives Who Have Previously Filed for Bankruptcy

This can be the friendliest resource you can find out there to help you with your bankruptcy problems and issues. Your friends and relatives that have gone through the same procedure will help you a long way to get through this as painlessly as possible, because they know the worst. They will give you first hand advice. Above mentioned were some resources from where you can easily find some bankruptcy legal advice.

If you are deep in debt and are getting worried and looking for bankruptcy tips then I have some advice for you. Bankruptcy is getting harder to get and will damage your credit score very much. However nowadays consumer debt settlements are surpassing bankruptcy due to some new laws.

Previously it was easier to file for chapter 7. A lot of people went bankrupt. However the financial institutions were not happy with this and this was hurting the economy. Eventually a new legislation was passed which is stricter. So now it is harder to get chapter 7. What is being focused now on is chapter 13 which is debt restructuring. In it you still have to pay back your loans but the law will decide what to do with you and how to force you to pay back your dues. You will either get 3 years or 5 years to pay it back depending on your income and some other conditions.

These legislation have led to lesser bailouts. However since there are still people having problems paying back their debts and can no longer file for bankruptcy or get it they are going towards debt settlements. The reason debt settlements are surpassing bankruptcy is that they are becoming a better option that bankruptcy.
Getting a debt settlement means you will still have to pay back some part of your debt. In debt settlement what happens is that you negotiate with your creditor. You tell them that you will not be able to pay your dues. Since you filing for bankruptcy would be a complete loss for them they agree to cut it down to something more manageable for you because they want to minimize their losses. So they may agree to reduce your debt. Sometimes they may even reduce it up to 70%. It all depends on some factors such as your financial health, income and others.

The hit your credit score will get from a debt settlement will also be lower than what you would have gotten from a bankruptcy filing. And once you pay the amount due the bank will consider your account settled. For this growing need there are many companies who will help you get a debt settlement for a fee. These companies will use their expertise to get the best deal for you. There are also some good debt relief networks which keep a check on these companies and you should contact these networks if you are thinking about getting a settlement.

If you have over $10k in unsecured credit debt there is legitimate help out there. Instead of going right to a debt settlement company you might have heard on the radio or television, it would be wise to use a debt relief network. This way you can be assured that you find a legitimate company in your state. Check out the following link for a list of legitimate debt settlement services in your state:

Fortunately nowadays filing for bankruptcy is no longer considered such a social or financial disgrace as it was ten or twenty years ago. You can take advantage of filing for bankruptcy to give yourself a way of escape, allowing you to start again on the right foot.

You will now be able to concentrate on restoring your credit and this is no easy chore. It is obvious to all, that if you did file for bankruptcy it was because you could not manage your credit in the first place. This will make finding another credit all the more difficult. This does not mean that you will never have a chance to; it just means that from now on your financial life habits will have to change.

How can you rebuild your financial status if you cannot get credit? This will depend principally on the type of bankruptcy you filed for. Bankruptcy filed under Chapter 13 will bind you for five to seven years, whereas filing under Chapter 7, means your bankruptcy history will stay on your credit report for about ten years. Nevertheless, during this time you will find it hard to get your financial status back, in addition to the fact that credit will be a near impossibility. This does not mean you cannot get the pieces back together again.

Depending on your income you will have to adapt to your new condition. If you still have a property and pay a loan to the bank, keeping on time with your mortgage payments will be an asset for any future credit request and will enhance your credit report, although not all properties report to credit bureaus.

Try taking on a new outlook and treasure your past experiences. Most bankruptcy attorneys and financial analysts suggest that the right attitude and perseverance will help a great deal after filing for Chapter 7 and 13. The sooner you get back in after bankruptcy the sooner you will recover from the aftermath of bankruptcy. If you keep a positive attitude, this will make a real difference.

Change your financial management strategy, keep your payments up-to-date and do not let them run late. With professional help from an attorney or law firm and again a financial analyst, you can plan a financial scheme and even obtain a new credit without having to pay exorbitant fees or interests due to your past mistakes. Seeking advice from a bankruptcy attorney can help you get into step once more.

Article Source: http://EzineArticles.com/3892083