The Bankruptcy attorneys at Brown, Paindiris & Scott, LLP focus on the needs of individuals and small businesses in all chapters and phases of bankruptcy.  The Bankruptcy Department, headed by Attorney Gregory F. Arcaro, has vast experience in representing individuals and small businesses in Chapter 7, Chapter 13 and Chapter 11 proceedings in all Connecticut Bankruptcy Courts.  In addition, the Bankruptcy attorneys at Brown, Paindiris & Scott routinely represent individuals and small businesses in bankruptcy adversary proceedings in all Connecticut Bankruptcy Courts.

There are several “chapters” of bankruptcy, but most often the debtor (the person or married couple filing the case) files either a Chapter 7 or a Chapter 13 bankruptcy case.  The main difference between the two is that in a Chapter 13, creditors are repaid over time, up to 5 years, most often out of future earnings.  In a Chapter 7, future earnings are not used to repay creditors and most often in a Chapter 7 case, there are no assets given to creditors.

Chapter 7

A Chapter 7 bankruptcy case is most often filed when the debtor is overwhelmed with credit card debt, debt related to medical expenses and debt incurred as a result of the loss of a job.  A Chapter 7 will discharge all unsecured credit card debt, medical bills, and unsecured loans.  As a result of a Chapter 7 bankruptcy, the debtor no longer has a legal obligation to pay any debt that arose prior to when the bankruptcy case was filed. There are several types of debts that are not discharged in a Chapter 7 bankruptcy.  Some examples are: student loans, debt incurred as a result of intentional harm to a person, and debt incurred as result of injuring someone in a drunk driving accident.  Most often, however, all a debtor's unsecured debt is discharged, which will allow them to have a fresh financial start, free of the burden of overwhelming debt.

Chapter 13

A Chapter 13 bankruptcy is most often filed to stop a foreclosure of a home and to repay tax debt that cannot be discharged in a Chapter 7 case.  If you are seeking to stop a foreclosure case on your home, a Chapter 13 will allow you up to 5 years to repay your mortgage company any arrearage you have accumulated.  This is possible because the filing of a bankruptcy case invokes an Automatic Stay of actions by creditors, including mortgage lenders who have commenced a foreclosure case regarding your home.  The Chapter 13 Bankruptcy keeps the Automatic Stay effective for up to 5 years, halting the foreclosure during that time period.  It is important to note, however, that in order to keep the Automatic Stay in effect and stop the foreclosure, you must make monthly payments the mortgage lender beginning when your Chapter 13 case is filed.

Free Initial Consultations

For any type of bankruptcy case, the bankruptcy attorneys at Brown, Paindiris & Scott offer a free initial consultation.  We do not charge for our initial consultation because we want people to come and talk to us about their potential bankruptcy.  A bankruptcy consultation is often the only way to begin addressing your financial situation, including, most importantly, stopping a foreclosure case that threatens to remove you from your home.  We do ask that prior to coming to your initial consultation, you fill out some forms and bring some documents with you.  This information will assist us giving you the best advice we can...sooner.  We ask that you bring with you the following documents:

-your last two years filed tax returns, state and Federal, with all supporting documents

-your bank statements for the last 6 months

-your paystubs from the last 6 months

-copies of all statements regarding all debts that you have, including mortgages and car loans/leases

-a completed Bankruptcy Questionnaire

Credit Counseling/Debtor Education

Due to the substantial changes to the bankruptcy laws in 2005, all debtors must undergo credit counseling prior to filing their bankruptcy cases.  In addition, regardless of what chapter of bankruptcy you file, a pre-discharge debtor education course is also required.  Both courses can be done online or by telephone at cost of not more than $50.00 per course, per person filing, paid directly to the course provider.  A list of approved credit counseling agencies for the State of Connecticut can be downloaded here: Approved Agencies

Please keep in mind that these courses do not either qualify you or disqualify you from filing a Bankruptcy case.  They are requirements of filing only.

If you wish to schedule a free initial bankruptcy consultation, please contact Attorney Gregory F. Arcaro.  He can be reached by e-mail at: garcaro@bpslawyers.com or (860) 659-0700 x 227.