Connecticut Bankruptcy

In Connecticut, a bankruptcy offers debtors a fresh start because bankruptcy protects consumers against lawsuit from creditors. The protection starts after you attend the mandatory pre-bankruptcy counseling session and file your case with the Court. Until that time, creditors can still try to collect on your credit card debt. And, you are not protected from Connecticut foreclosure proceedings.

My house is being foreclosed on, is it too late to file chapter 13 bankruptcy?
Eugene S. Melchionne, Connecticut Bankruptcy Attorney answers this question with his posting on The Bankruptcy Law Network blog. He states:

Since Connecticut has two kinds of foreclosure - auction sale or strict, it is important to know where your case is in the process. Thankfully, even if the Judgment of Foreclosure has entered in your case or the auction sale has taken place, it still may not be too late. In Connecticut , as long as the Court has not confirmed the sale or the Law Days set in the foreclosure case have not passed, you are still eligible to file Chapter 13 in the U.S. Bankruptcy Court.

Chapter 13 you to pay the arrearages back over a period of time. Keep in mind that the amount to repay is substantially increased. In addition to the back payments, you will have to pay all the Superior Court costs and attorneys fees as determined by the Judge as well as the auction expenses. In addition to all of that, you will have your own attorney fees, the Bankruptcy Court filing fee and costs, and the Chapter 13 Trustee's fees to pay into the plan. In Connecticut , the Trustee's fees alone are 10% of every payment you make for entire duration of the plan.

Avoiding Bankruptcy
Connecticut chapter 7 bankruptcy laws and Connecticut chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcies. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan. Concord bankruptcy lawyers and other Connecticut bankruptcy attorneys can explain your options to you and help you select the best one for your situation.