The absence of a repayment plan is one of the biggest ways in which Chapter 7 differs from Chapter 13 bankruptcy. There are many other differences as well, including an income cutoff regarding eligibility to file for Chapter 7 bankruptcy. In Connecticut, individuals who earn under a certain income threshold may qualify for Chapter 7 while still being curious about the benefits of Chapter 13. Here are a few key differences to consider.
Most people in Connecticut will experience a financial emergency at least once in their lives. Whether a financial crisis leads to foreclosure can depend on a variety of factors, including a person's other debts, income and even savings. Some researchers say that the type of neighborhood a person lives in could also affect one's risk of losing a home to foreclosure.
A college education is often the key to unlocking a fulfilling and financially rewarding career. However, a college degree is not cheap, and students in Connecticut and across the rest of the United States often struggle with paying back hefty loans. As experts predict high future rates of default, personal bankruptcy could be a smart option for some borrowers.
Which generation holds the most debt? While some people in Connecticut may think they have the answer, the reality of debt in America may be surprising to most. Generation X currently leads the list. However, debt is not isolated to this demographic alone, and virtually anyone of any age could find themselves in need of debt relief through personal bankruptcy.