Bankruptcy in Nashua, NH

Financial distress can leave you feeling like you’re at a dead end. Bankruptcy, often seen as a last resort, can provide a beacon of hope. It is a structured path through the tangle of debts and relentless demands from creditors.

You can start to lift yourself out of debt today. You can breathe freely and rebuild your financial foundation. Consider the options available to Nashua residents below and ask us for a referral to legal help today.

Types of Bankruptcy in Nashua, New Hampshire

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Nashua, NH to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Bankruptcy cases from Nashua go through the U.S. Bankruptcy Court for the District of New Hampshire. This federal court specializes in adjudicating all matters of personal and corporate bankruptcy.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Nashua  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

Regardless, there are compelling reasons to consider alternatives to Chapter 7 bankruptcy. If you have a steady income, Chapter 13 bankruptcy allows you to keep your property and repay debts over time. It’s particularly suitable for those who want to prevent foreclosure in Nashua. Chapter 11, typically used by businesses, offers a reorganization plan that lets the debtor retain control of their assets and operations.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

Filing for Chapter 11 bankruptcy in Nashua is a meticulous process. Individuals or businesses may need to prepare to answer a variety of questions, such as:

1. What is the comprehensive list of your assets and liabilities?
2. Can you provide detailed income and expenditure statements?
3. What are the names and addresses of all your creditors and the nature and amount of their claims?
4. Have you previously filed for bankruptcy, and if so, when and where?
5. What are the details of contracts and unexpired leases you currently hold?
6. Do you have a proposed plan of reorganization?

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Nashua, NH after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

When navigating Chapter 13 in Nashua, individuals should be ready to delve into specific details. Some relevant questions you may encounter include:

1. How much regular income do you receive, and what are the sources of this income?
2. Do you have a detailed list of all living expenses, such as food, clothing, shelter, utilities, taxes, transportation, medicine, etc.?
3. Are there co-debtors on any of your outstanding debts, and what is their association with you?
4. Could you provide the recent tax returns and proof of tax compliance?
5. What assets do you intend to claim as exempt, and what is the basis for these exemptions?

The Bankruptcy Process in Nashua, New Hampshire

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Nashua to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

In Nashua, individuals seeking relief through bankruptcy can take advantage of state exemptions to protect their assets. Among these, you can find exemptions for equity in your residence. There is also protection for personal property, including clothing, furniture, and certain appliances. Additionally, certain pensions and public benefits remain to protect your future and well-being.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Nashua, New Hampshire Lawyer

Hiring a local bankruptcy lawyer in Nashua during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can be discharged or can’t be discharged. An experienced New Hampshire attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Nashua can guide you through the entire bankruptcy process. We can even help you connect with an attorney across New Hampshire state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!