Have you wondered if filing Chapter 13 in Connecticut is the best way to get rid of your debt problems? Would filing bankruptcy help or hurt your financial situation? If you have questions about filing Chapter 13 bankruptcy in Missouri, we have answers.
Firstly, filing Chapter 13 is a big decision. You are committing to a bankruptcy repayment plan that could last for up to five years. This is why understanding the bankruptcy differences and understand your Chapter 13 plan payment is crucial to making the most informed decision. Let’s get started.
Chapter 13 Bankruptcy vs Chapter 7 Bankruptcy
A Chapter 13 Bankruptcy is commonly known as the ‘wage earners’ plan. Under Chapter 13, debtors begin a payment plan that can last from three to five years, in which payments are submitted monthly. Note that some people prefer Chapter 13 as they are not eligible for Chapter 7. This is usually because their monthly income is too high or they have valuable possessions.
On the other hand, Chapter 7 Bankruptcy is known as a ‘liquidation bankruptcy. This is a form of debt relief is typical for debtors who are unable to pay their debts and would like to discharge their debt. If you qualify, you will notice that Chapter 7 can be handled in as little as four months and it doesn’t cost much. To get an estimate of your monthly Chapter 13 payment arrangement and to see whether you are eligible for a Chapter 7, use our calculator below.
1. Calculating Chapter 13 Plan Payments in Connecticut
Your Chapter 13 plan payment in Connecticut depends on your unique financial situation, which is why we build a free Connecticut Chapter 13 Plan Payment calculator below that you can use to estimate your Chapter 13 plan payment. The Chapter 13 bankruptcy Connecticut payment estimate arrangement takes into consideration the IRS National expense figures, including particular Connecticut expenses.
Factors used when calculating a Chapter 13 plan include, but are not limited to:
- Disposable Income — The amount of income you have each month after subtracting allowable payroll deductions and allowable living expenses from your gross monthly income.
- Assets — In some cases, the value of your assets could increase the amount of your Chapter 13 plan if your assets have large amounts of non-exempt equity. We discuss Connecticut bankruptcy exemptions in more detail below and how exemptions impact your Chapter 13 plan.
- Debts — Some debts must be paid in full through the Chapter 13 plan (priority unsecured debts such as taxes, alimony, child support, and administrative costs). Other creditors may receive partial payments, including unsecured debts, such as medical bills, credit card debt, and personal loans. Chapter 13 plans typically include back mortgage payments and car loan payments.
- Recent Financial Transactions — Some recent financial transactions could impact your Chapter 13 plan.
You can also explore detailed information about Chapter 13 by reading our article entitled “Chapter 13 Bankruptcy – Everything You Need to Know.”
Connecticut Means Testing
In the above calculator, we have used Connecticut means testing data found here to estimate bankruptcy qualification. Additionally, there is information for the Connecticut Means Test starting on or after May 15, 2021, in the table below.
|# of People||Annual Income|
2. Chapter 13 Bankruptcy Connecticut Exemptions
Prior to pursuing Chapter 13, ask yourself if you own any assets above the exemptions. Even if you are eligible for Chapter 7, having a high equity position in assets makes it more feasible to choose Chapter 13 or debt settlement.
In Connecticut, there are statutes and bankruptcy exemptions relevant to your state that should be considered when filing for bankruptcy. In the event that you have assets that are above the Connecticut exemptions, they may be liquidated. You may want to review all of the Connecticut bankruptcy exemptions before pursuing a Chapter 13 bankruptcy.
3. Connecticut Bankruptcy Districts and Court Locations
Unlike other states that have multiple bankruptcies, there is only one bankruptcy district in Connecticut. There are three courts located in Connecticut located as follows:
4. Chapter 13 Bankruptcy Connecticut Trustees
It is the trustee’s job to liquidate the debtor’s non-exempt assets as well as to administer the bankruptcy. While there are plenty of Chapter 7 trustees, there are fewer for Chapter 13. Below is the Chapter 13 bankruptcy trustee in Connecticut.
|Roberta Napolitano||(203) 333-1177|
5. Should I pursue a Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy is a viable option for debtors who don’t qualify for a Chapter 7 or don’t see it as an option. You are advised to weigh in all the other options other than Chapter 13. These options include debt management and debt settlement. With our Chapter 13 calculator, you will see options and the pros and cons. You can use the calculator either for personal research or as a resource.
Debt can be stifling and stressful. It is our hope that this article will play an important role in your quest to becoming debt-free. Also, if you prefer to watch something, you may be interested to see the video for Connecticut Chapter 13 bankruptcy summary.