What are Connecticut Bankruptcy Records?

The State of Connecticut defines bankruptcy records as legal documents incorporating detailed financial information and other data about the organization or person filing for bankruptcy. Bankruptcy is a lawful procedure that aids people or organizations in paying off debts to creditors. Bankruptcy occurs in a federal court and is under the federal bankruptcy statute 11 USCA § 501 et seq.

The advantage of filing for bankruptcy is that it gives the person riddled with debts an opportunity to start anew. Additionally, after a person or business has filed for bankruptcy, creditors are generally no longer able to enforce debt collection or persist with mortgage foreclosure until the bankruptcy court resolves the case. The United States Bankruptcy Court, District of Connecticut, oversees bankruptcy cases in Connecticut.

The two common types of bankruptcy in Connecticut are Chapter 7 and Chapter 13. Bankruptcy cases that fall under Chapter 7 allow only individuals to file for bankruptcy. Filing a Chapter 7 bankruptcy petition will enable the person to erase evidence of debt. Most debts covered under the bankruptcy statute are personal loans, credit card, medical, and utility bills.

According to Chapter 13 of the bankruptcy statute, debtors may be allowed to repay creditors using a three to five-year plan. The court uses the bankruptcy statute to obstruct or prevent mortgage payments, house closures, missed car fees, keeping non-exempt belongings, paying back taxes, and avoiding increasing interest on taxes.

What do Connecticut Bankruptcy Records Contain?

Connecticut bankruptcy records consist of:

• Gross income of the debtor
• Source and frequency of income
• Assets
• Bank accounts
• Properties
• Stocks
• A statement of monthly living expenses
• Businesses owned and invested in by the debtor, and businesses that the debtor invested in
• List of creditors, addresses, and the amount owed
• Record of every employee owed

The creditors listed are of two categories; secured creditors and unsecured creditors. Secured creditors are persons who backed up the borrowing with collateral and are of high priority. Examples of secured creditors are asset-based lenders and banks. On the other hand, unsecured creditors are creditors who did not request collateral while the debtor was borrowing money. Examples of unsecured creditors are hospitals and credit card companies, among others.

Are Bankruptcy Records Public Information?

Generally, except when the court seals a record, all bankruptcy cases are public information accessible to Connecticut citizens. Bankruptcy cases may also include court proceedings, and all court proceedings are public information in Connecticut. Although it is unlikely for a judge to seal a bankruptcy record, it is still possible if public access threatens the debtor’s safety.

Records that are considered public may be accessible from some third-party websites. Such platforms operate independently of government agencies, which might help simplify the search process as they are not limited by geographic location. In addition, most third-party sites offer intuitive tools that inquirers can use to find specific or multiple records. To obtain documents, interested parties may need to provide some or all of the following:

• The name of the person involved in the record, unless said person is a juvenile
• The location or assumed location of the record or person involved. This includes information such as the city, county, or state that the person resides in or was accused in.

Third-party sites are independent from government sources and are not sponsored by these government agencies. Because of this, record availability on third-party sites may vary.

How to Get Connecticut Bankruptcy Records

Interested persons can visit the National Archives and Records Administration (NARA) to view and make copies of bankruptcy records in the State of Connecticut by sending a request. To apply for a bankruptcy record, interested individuals must provide the following data to the National Archives and Records Administration (NARA):

• Name of the court that filed the bankruptcy case
• Case number
• Names of each party on the case
• The time case was filed
• FRC transfer number

To obtain an FRC transfer number, contact the bankruptcy court that decided the case. If the court cannot get the transfer number due to the age of the case, note this in the request sent. The search is free, and requestors should not send any fees or credit card information. Designated staff members typically disclose applicable fees before making copies.

How do I Find Out if My Bankruptcy Case is Closed in Connecticut?

To inquire if a bankruptcy case is closed, visit the National Archives and Records Administration (NARA) to retrieve closed business or personal bankruptcy records in the state of Connecticut. To proceed, contact the court to provide the appropriate location of the files. Order, download, or print copies of the court records online, or mail the filled Court Records Order form to NARA.

Can a Bankruptcy be Expunged in Connecticut?

Filing for bankruptcy as a business or individual is not a violation or a criminal offense of the law, and the court cannot expunge the action. The bankruptcy record generally remains on the person’s credit report for at least seven to ten years, depending on the chapter of bankruptcy filed.

Bankruptcy cases that fall under Chapter 7 are cleared in ten years because the debtor does not pay the debts. On the other hand, bankruptcy cases that fall under Chapter 13 may be deleted in seven years because the debtor repaid part of the debt. However, if an individual needs to remove a bankruptcy record from a credit report quickly:

• Check for bankruptcy errors in the credit card report
• Use a credit dispute letter to call attention to the incorrect bankruptcy entries
• Forward a procedural letter of request to the credit bureaus
• Inquire from the court on bankruptcy verification
• Make a motion to remove the bankruptcy files

What Disqualifies you from filing Bankruptcies in Connecticut?

Connecticut residents may be disqualified from filing for bankruptcy if they provide false or misleading information about their assets or debts or engage in fraudulent activity. Other reasons may include failing the Connecticut Means Test, which is required to qualify for a Chapter 7 bankruptcy filing. The Means Test allows individuals whose average monthly income for six months is below Connecticut’s median income to qualify. Individuals whose income is above the median typically must provide a detailed calculation of their disposable income.

Disqualifications may also occur if an applicant files too soon after a previous application. Generally, there is a 180-day waiting period after a bankruptcy case is dismissed before the applicant can refile the case. There are also waiting periods between discharges and filing a new case. You must wait for 8 years after a Chapter 7 discharge to file another one or wait 6 years after a Chapter 13 discharge to file another one. There is also a counseling course to be completed within 180 days before you file the case. Without the credit counseling course certificate, the case will be dismissed.

Individuals who do not qualify for a Chapter 7 bankruptcy filing in Connecticut may qualify for any of these other options:

• Chapter 12 bankruptcy: This was made specially for family fishermen and farmers; these residents with such occupations may adopt this alternative.
• Chapter 11 bankruptcy: This option is more expensive and is mostly adopted by businesses.
• Chapter 13 bankruptcy: This option offers reorganization to steady income earners through a payment plan that usually spans 3 to 5 years. It is also the most popular alternative for people who fail the means test.