Asset Protection Lawyer New Haven, CT

Asset Protection Lawyer New Haven, CT

Asset Protection Lawyer New Haven, CTWhen people think of asset protection, not normally does one conjure up the thought of bankruptcy. Many people may find themselves in bankruptcy court at some point in their lives. A proper asset protection plan drafted by a New Haven, Connecticut asset protection lawyer can actually help them avoid losing all of their assets provided that the asset protection plan was established well in advance of any creditor difficulties. This approach will give people a reasonable chance of coming out of bankruptcy with a decent amount of assets.

When a bankruptcy petition is filed, the court will consider all interests in the property of the debtor at that point, but will also issue what is legally referred to as a stay. This means that all creditors, collectors, and repossessors must immediately cease their activities. 

Chapter 7

The bad news is that under Chapter 7 bankruptcy, you’ll probably end up losing your home. The upside to Chapter 7 is that if you see foreclosure on the horizon, you can file for Chapter 7 bankruptcy protection before the foreclosure proceedings start and stop foreclosure from showing on your record. An asset protection lawyer in New Haven, CT can evaluate your situation to see what options are best. 

Chapter 13

Chapter 13 bankruptcy differs from Chapter 7 in that you repay your debts over the course of three to five years. This allows you to restructure and create a financial success plan for yourself. During this time, you will have a lower monthly payment on your house and could allow you time to get caught up on the arrears. This route could save your home.

Under either option above, a creditor can file a motion to lift the stay. This would ask the court permission to proceed with a foreclosure sale even while you’re in bankruptcy proceedings. Whether the court grants this will depend on many factors but, even if it is granted, you’ll still receive at least a couple of months’ time in the house before the foreclosure sale. In order to make sure you are protected, however, it is best to have a New Haven, CT asset protection lawyer representing you during this process. 

Chapter 13 Is Better if You Want to Keep Your Home

This is why asset protection is important. Under Chapter 13 bankruptcy, you can pay back any late payments to the bank under the repayment plan set up by the bankruptcy trustee. By making all of your payments on time, you will avoid foreclosure. In addition, if you have a second or third mortgage, the court may deem these unsecured debts which means you wouldn’t have to repay them. In order for that to happen, your first mortgage must be secured by your home’s full value which might leave zero equity remaining for your second or third mortgage.

Let a New Haven, CT Asset Protection Lawyer Help Save Your Home

As shown here, despite thoughts to the contrary, bankruptcy can be a key component to asset protection. Once it’s clear you have no other options besides bankruptcy, choosing the right course of action is paramount to saving your assets. You must act quickly because time is of the essence. You don’t want to wait until your bank has filed foreclosure proceedings. You need to act first. Contact The Law Offices of Ronald I. Chorches today to speak with an asset protection lawyer New Haven, CT clients recommend who has the experience necessary to guide you to a fresh start.