Personal bankruptcy an option for people with over-due car loans

Debt can be a significant burden for Connecticut consumers who can no longer manage their obligations and make payments on time. For many, a significant portion of their debt burden is a result of auto and other similar personal loans. When a person is no longer able to make payments and is struggling with the consequences of overdue debt, personal bankruptcy may be an option by which he or she can discharge the debt and secure a better financial future.

Experts note that consumer debt increased in the last months of 2018 at a higher rate that many estimated. There are many reasons for this, including consumer confidence bolstered by tax cuts, a strong economy and more. Nonrevolving debt, such as car loans, increased by more than $17 billion.

Increased consumer spending is a positive sign of a good economy. However, consumers would be wise to be wary before making large purchases, such as a vehicle. Car loans often have a lifetime of several years, and changes in financial circumstances can affect a person’s ability to make payments. Falling behind can lead to threats of repossession, phone calls from creditors and more.

When a consumer is no longer able to make payments on a car loan or other type of debt, there are legal options available. Personal bankruptcy offers a legal and organized way by which a person can rid him or herself of certain types of debt burdens. If behind on car payments and facing other consequences of overwhelming debt, a Connecticut consumer might find it helpful to seek an explanation of the benefits of bankruptcy.