Practice Overview

What Can I Keep After Bankruptcy?

Milford, Connecticut Bankruptcy Lawyers

The first question most people have when considering bankruptcy is whether they can keep their home and what, if anything, they'll have to sell. People who are able to make monthly mortgage payments are unlikely to lose their home. Additionally, there are a number of exemptions available in Connecticut that provide some level of protection for individuals and businesses. At the law office of Harlow, Adams & Friedman, our attorneys evaluate your financial situation, the exemptions you are eligible for, and explain what you will likely be able to keep after declaring bankruptcy.

If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, contact the law office of Harlow, Adams & Friedman today to schedule an appointment and learn how we can help you.

Keeping Your Home During Bankruptcy

As stated above, whether you file for Chapter 7 or Chapter 13, the key to avoiding foreclosure is making monthly payments on your home. While Connecticut's homestead exemption will help to some extent, your ability to make monthly payments is necessary. If you have a subprime mortgage or interest-only mortgage and find it impossible or nearly impossible to make monthly mortgage payments, talk to your bank about a loan modification or available refinancing options. You may be required to take a 30 year fixed rate mortgage to reduce monthly payments.

Can I Keep My Car? Boat? Flat Screen TV?

Under the terms of Chapter 13, debt is reorganized and you'll be required to pay a fair percentage of your disposable income over a 3 to 5 year period. If you can adhere to the terms of your repayment plan, you can keep what you've charged on credit cards or bought with loans. Under Chapter 7, however, the court can sell whatever it considers to be a luxury item in order to pay your creditors some or all of what you owe them.

The Tools of the Trade Exemption

Under Connecticut state law, there is an exemption for materials, equipment, and other items related to one's job or business. For example, if you're a musician the court cannot sell your instruments. If you're a mechanic, computer consultant, or own your own construction company, the court cannot liquidate the tools and equipment you use for your job.

What Will Happen to My 401k?

Funds from pension plans, 401ks, personal injury settlements, trust funds, and IRAs cannot be used to pay creditors during bankruptcy. However, assets from stocks, investments in precious metals, or assets from a closely held business are not exempt from liquidation by the court.

Contact the Bankruptcy Attorneys at Harlow, Adams & Friedman Today

Once you file for bankruptcy, creditors must contact our office and leave you alone. Our office will evaluate your financial situation, gather all necessary records and information, and prepare and file all necessary paperwork with the court. Regain your financial footing and get your peace of mind back. Get peace of mind and your financial stability - contact Harlow, Adams & Friedman today and schedule an appointment to speak with one of our attorneys.

At Harlow, Adams & Friedman, P.C., we represent clients in Milford and throughout Connecticut, including the communities of Bridgeport, New Haven, Stamford, Norwalk, Danbury, Stratford, Shelton, West Haven, Orange, Trumbull, Monroe and Derby; and other locations in Fairfield County and New Haven County.