Debt is one of the most challenging issues facing most American families. Here in Connecticut and elsewhere in the country, hundreds of thousands of families are facing insurmountable debt in the form of credit cards, medical expenses and more. Thankfully, a Chapter 7 bankruptcy filing can help to relieve that financial pressure by forgiving some debts and helping to repay others.
Chapter 7 is considered a liquidation bankruptcy, which means that assets can be categorized to be sold off in order to pay down creditors. This does not necessarily mean that the individual or family filing for bankruptcy will lose their home or vehicle, depending on the case. Some assets are considered exempt from the bankruptcy process, which means they will not be liquidated and can remain the property of the filer.
With that said, some debts are also considered exempt from discharge, including most back taxes, alimony, child support and most student loans. Generally speaking, these debts will not be forgiven. Understanding what debts can be handled by Chapter 7 bankruptcy is the first step toward a fuller knowledge of the process. A lawyer can help assess one’s individual circumstances.
The process can be complicated, which is why the help of an attorney can be so invaluable to Connecticut residents considering Chapter 7 bankruptcy. By guiding an individual or family through the process, an attorney can facilitate a relatively quick and painless filing that can put them back on track toward stability. The path to a healthy financial future can be smoothed with the right insights, so seeking this support can be extremely helpful.