When people in Connecticut find that they can no longer keep up with their financial obligations they may consider filing for bankruptcy. Even so, they may be reluctant to go through with it for some time. There are two main reasons for hesitance: losing assets and the hit to their credit score.
The cost and standard of living in Connecticut is higher than many other states. This can make it easier for people to slip into debt and even harder for them to climb out. The longer that debt remains unpaid, the more it feels as though the debtor may never recover or find a way out. So, what can people do when the debt becomes so much that they cannot afford to make even their minimum payments to keep up?
For many people in Connecticut, debt can quickly spiral out of control. When this happens, Chapter 7 bankruptcy may be the absolute best option they can consider. According to CNBC, in 2018, only 733,000 people were expected to file for bankruptcy. This is a steep fall from 2010’s whopping 1.5 million filings.
Once you make the decision to pursue a personal bankruptcy, the next task is determining which case you should file under. Many come to us here at Beebe & O'Neil wanting to file under Chapter 7 due to the advantage it offers of having debts discharged. Indeed, Chapter 7 is by far the most popular form of personal bankruptcy (both in Norwich and throughout the rest of the U.S.). Yet you might be shocked to discover that are not eligible to file for Chapter 7. That is because the federal government does not want people to abuse the protection that bankruptcy offers.
When people in Connecticut overextend themselves financially, bankruptcy may often seem like the easy answer. While bankruptcy may very well be the only answer in some instances, there is a lot more to the process and aftereffect of filing than many people consider. So, before making the decision to file for bankruptcy, it is a good idea to prepare for the repercussions that come with the benefits.
If you are drowning in debt in Connecticut and feel you have no other options, you may be considering filing for bankruptcy. In a chapter 7 bankruptcy, the trustee takes many of your assets and sells them to help pay down your debt. However, there are some exemptions about items you are able to keep.