With the state of today’s economy, the high unemployment rate, and the mounting costs of living, declaring bankruptcy has become much more common than it was in days past. Whether the bankruptcy is filed jointly (between husband and wife, for example) or personally (as when one individual files alone) it is always a serious matter. It is for this reason that obtaining the services of a qualified bankruptcy lawyer in CT is advisable prior to declaring bankruptcy.
Before proceedings can commence, the debtor’s bankruptcy lawyer in CT must first file a petition with their bankruptcy court. This creates a bankruptcy estate that is made up of the assets of the person who is filing. A list of these assets is required when filing the original petition. If one is declaring bankruptcy under Chapter 11 or Chapter 7, the creation of a separate taxable entity is created.
The person who is declaring bankruptcy has varying options regarding his or her tax obligations. These decisions are based largely upon the chapter under which the bankruptcy is filed and whether or not the filing represents a personal bankruptcy. There are times when the current tax obligations are discharged, but at other times they are not. The final determination depends upon the specific circumstances.
A general rule about how taxes are handled is that when a debt is owed or canceled, the amount that is forgiven will be considered income that becomes a tax obligation to the person who is declaring bankruptcy with a bankruptcy lawyer in CT. However, if a debt is canceled during the course of a bankruptcy proceeding, the amount that is canceled is not considered by the court to be income. The canceled debt does reduce the amount of that person’s tax benefits that he or she would otherwise be entitled to.
One can be certain that his or her decision to file for bankruptcy will not be a straight forward, simple undertaking that can be dealt with casually. One would be well advised to seek the services of a professional bankruptcy lawyer in CT when declaring bankruptcy and throughout the process.
What Are the Best Methods for Finding A Bankruptcy lawyer in CT?
It is not difficult to find an expert lawyer experienced in handling bankruptcy in CT. The best method to locate one of them is to browse the internet. Searching for, “law firm for bankruptcy in CT” you will be provided with many options. With the statistics on bankruptcy filings at a record high the chances are great that you know someone who has in the recent past filed for bankruptcy. It is wise to ask your friends or relatives about it to see if they can recommend a competent law firm. You should not hesitate, as the international recession has left its hard imprints on innumerous American families.
Just finding an expert would not suffice when you want to overcome a financial crisis. You must try to get in touch with a law firm who has proven records of success. Meet with an attorney at the firms you feel are the best possible choice to deal with your specific situation, and make sure you feel confident in their abilities to address your personal situation. Otherwise, working with a bankruptcy lawyer in CT is safe and simple, and can bring the financial relief you need.
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