Obtaining relief from an otherwise unmanageable financial situation is a privilege which is afforded by our legal system, and is no longer a stigma. When debts pose an overwhelming hardship, bankruptcy is sometimes the only option which will protect the interests of you, your family, and/or your business. Lawrence & Jurkiewicz, LLC are bankruptcy attorneys in Avon and Torrington, Connecticut who approach each case with patience, compassion, and understanding, and offer an analysis of your situation based on many years of experience in the bankruptcy bar.

Regardless of which chapter you file under, the filing of a bankruptcy petition itself operates as a stay which, in most instances, provides immediate relief from pending lawsuits, collection notices, dunning calls, and harassment.

Chapter 7 (Liquidation) is usually the most straightforward and fastest means of obtaining permanent relief from your debts. In Chapter 7, as in all bankruptcy filings, a thorough summary of your financial affairs, including assets, income, and debts, is disclosed. The court appoints a trustee to liquidate, or sell, your nonexempt assets, if any, and distribute the proceeds to your creditors. You are entitled to claim some assets as exempt from this process, as allowed by federal or state law. Your bankruptcy attorney may recommend Chapter 7 if all or most of your assets can be claimed as exempt.

Chapter 11 (Business Reorganization) is usually filed by businesses, but is also available to individuals. A Chapter 11 bankruptcy proceeding, which is relatively complex, allows the debtor to accept (and cure defaults on), or reject, unexpired leases within a specified time after filing, and to propose a plan (subject to creditor disclosure and approval by means of a voting process) which may restructure the debtor’s financial obligations, including the terms of secured debt. Upon approval (confirmation) by the court, the Chapter 11 plan becomes a new, legally binding contract between the debtor and the creditors, which replaces the pre-existing contractual relationships.

Chapter 13 (Wage Earner Reorganization) can be used to save a residence from foreclosure. A Chapter 13 bankruptcy debtor must propose a plan, lasting at least three, but no more than five years, which may provide for the cure of defaulted mortgage arrearages, combined with the maintenance of current payments. A Chapter 13 bankruptcy case may also be used to pay non-dischargeable tax claims. In certain circumstances, a Chapter 13 plan may be used to avoid, or “strip” a second mortgage or a lien which has no equity value.

We are a debt relief agency helping people file for bankruptcy relief under the Bankruptcy Code. For more information, call to schedule a free initial consultation with a bankruptcy lawyer at our Avon or Torrington, Connecticut office.