Frequently Asked Questions About Bankruptcy

• Chapter 7 bankruptcy liquidates an individual’s unsecured debt. Eligibility for Chapter 7 is determined by a means test that is based on a comparison between the debtor’s income and the average income of households of a similar size in the state of Connecticut.

• Chapter 13 bankruptcy involves restructuring debt and developing a plan for repayment. This plan usually spans three to five years and involves paying mortgage arrears and a portion of other debts. Chapter 13 is also known as “wage earner’s bankruptcy,” as debtors are usually workers with steady income.

• While each case is different, a typical Chapter 7 bankruptcy lasts four months from the time of filing until the discharge of debt. Only one meeting is involved, the “meeting of creditors,” and debtors are required to attend. Creditors may attend to challenge the terms of the bankruptcy. Our attorneys accompany clients to the meeting of creditors.

• In order to file bankruptcy, our firm collects information from clients (such as pay stubs, tax returns, bills, etc.), prepares a budget and prepares paperwork which is reviewed and signed by you. Under the new bankruptcy laws, credit counseling is required. This involves two sessions which are usually completed over the phone and take approximately one hour each.

• As long as you are current with your payments, you can “reaffirm” your car loan. This involves re-obligating yourself to your car loan company.

• If you are current on your mortgage and are able to continue making your monthly mortgage payment, you should be able to keep your home.

• There are circumstances in Chapter 13 bankruptcy in which a homeowner can remove a second mortgage or home equity loan from his or her property and discharge it. Contact us to discuss the specifics of your case.

• Chapter 7 bankruptcy — Filing fee: $335. Attorney fees: Between $1,000 and $2,500 in most consumer bankruptcy cases.
• Chapter 13 bankruptcy — Filing fee: $310. Attorney fees: Between $1,500 and $3,000 in most cases.

“Without a doubt, Tim is one of the best attorneys in his field. He is organized, thorough, and very clear. I always knew exactly what he needed and what I had to do. The process of bankruptcy can be very overwhelming, but he was able to break it down in manageable pieces. He is well-respected by his peers and clients. It was clear to me that he was highly regarded by the courts, as well. I strongly recommend Tim Pletter as he has made the whole experience a positive one. Despite his detail-orientation and business-like image, he has a very nice way about him which can really help during such an emotional time. ~ SLV”.