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Filing for bankruptcy in Connecticut is done in federal court, but does have some Connecticut specific provisions. If you're hoping to file for Chapter 7 bankruptcy protection, you'll need to pass a means test that is based on the median income in Connecticut. Read on to learn how to file for Connecticut bankruptcy.
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Legal Assistance Bankruptcy Basics
This video by the Connecticut Bankruptcy Law Network discusses the factors that you should consider when deciding whether or not to retain a bankruptcy attorney. While you are entitled to represent yourself in a bankruptcy case, bankruptcy is a complicated legal procedure. If you can't afford an attorney, you may be entitled to free or reduced fee legal services.
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Introduction
In Connecticut, as in all other states, you file for bankruptcy in the U.S. District court that covers the county you live or operate a business in. Several aspects of the process are governed by state law, so the amount of assets you can keep under Chapter 7, for example, will be governed by Connecticut statute. -
Step 1: What is Bankruptcy?
- Bankruptcy is a formal legal process that allows a debtor to cancel or restructure their debts, under the supervision of federal bankruptcy court.
- A Chapter 7 bankruptcy, requires you to sell all assets that are not classified as exempt, and use the proceeds to repay your creditors. Debts that can't be repaid are discharged. Most Chapter 7 Bankrupts don't have a significant amount of assets above the exemptions.
- A Chapter 13 bankruptcy modifies the terms of your existing debt, and specifies minimum payments that must be kept current. The payments are made to a court appointed bankruptcy trustee, or pays your creditors.
- Bankrupts who have too much debt for Chapter 13 may be eligible for Chapter 11 bankruptcy.
Step 2: Chapter 7 Income Test
In order to utilize Chapter 7 bankruptcy, you must satisfy a means test. You will automatically satisfy the test in Connecticut if your income is below the median income for similarly sized families in Connecticut. The 2008 Connecticut income levels are:http://research.lawyers.com/Connecticut/Bankruptcy-in-Connecticut.html]- Single wage earner: $57,505
- Family of two: $70,827
- Family of three: $85,315
- Family of four: $103,408
Add $6,900 for each additional member of the household.
Step 3: Connecticut Bankruptcy Exempt Assets
When you file for bankruptcy in Connecticut you can select from two alternatives for exempt assets. You can elect to use the federal exemption list, or you can use a list of exemptions available only to those who file for bankruptcy in Connecticut. You need to adopt one list in it's entirety; you can't pick and choose. The decision as to which exemption alternative can be complicated, and should be made with the help of an attorney.
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