When given the choice, many debtors prefer filing Chapter 7 bankruptcy because it discharges most debt. However, a debtor must qualify by meeting an income limitation. A qualified debtor may have debt discharged in exchange for giving up valuable nonexempt property for the trustee to sell to pay creditors. Even though the debtor will lose some property, there are several advantages of filing Chapter 7 bankruptcy over Chapter 13 bankruptcy.

Advantages to a Chapter 7 filing through Connecticut Bankruptcy:

• • You receive a complete fresh start. After the bankruptcy is discharged the only debts you owe will be for secured assets on which you choose to sign a “Reaffirmation Agreement.”
  • You have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing.
  • Wages you earn and property you acquire (except for inheritances) after the bankruptcy filing date are yours, not the creditors or bankruptcy court.
  • There is no minimum amount of debt required.
  • Your case is often over and completely discharged in about 3-6 months.

However, for the vast majority of Connecticut residents who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice. If you need any assistance regarding Chapter 7, feel free to give us a shout.