Chapter 7 Bankruptcy gives individuals, married couples, and businesses a fresh start. A Chapter 7 Bankruptcy wipes out almost all unsecured debts. Debts which can be forgiven include:

• Credit card debt
• Medical bills
• Unsecured loans (not secured by collateral)
• Collection accounts
• Civil judgments
• Back rent
• Overdue utilities (shutoffs can be stopped The back bill will be forgiven and the utility company is obligated to continue your service.)
• Payday loans
• Certain Federal, State and Local Taxes, interest and penalties.
• Deficiency judgments from foreclosure

Note: Child Support and Alimony cannot be forgiven. Student loans cannot be discharged unless substantial hardship is proven.

Under Chapter 7 Bankruptcy, most people are able to retain all of their property: house, cars, furniture and retirement accounts (Pension, IRA, 401-K)

A bankruptcy filing under Chapter 7 in Connecticut  will stop all wage attachments. lt will also prevent creditors from attaching your bank accounts or other property, or prevent them from enforcing judgments which they already have against you.

Upon the filing of a bankruptcy petition, the bankruptcy court will send a letter to all of your creditors informing them that you have filed bankruptcy. After a bankruptcy petition is filed creditors may not call you, send you letters or take any action to collect money from you or seize your property.