You might be making what others describe as a living wage, but that does not mean you are not struggling. Many people in Connecticut who earn living and middle-class wages are faced with more debt than they know how to handle. Sometimes, it is through the slow accumulation of smaller debts that are hard to notice until things have piled up. In other cases, a single financial disaster can throw people into a difficult situation. Either way, filing for Chapter 13 bankruptcy could help you deal with your debt.
Having a lot of debt may not be a reason to file for bankruptcy, especially if you are keeping up with all of your payments. However, if you are falling behind on payments and watching balances balloon because of interest rates, bankruptcy can be an instrumental tool. In Chapter 13 bankruptcy, you will be put on a repayment plan that lasts anywhere from three to five years.
Chapter 13 bankruptcy has other benefits besides discharging leftover debt at the end of the repayment plan. If your lender recently started foreclosure proceedings, filing for bankruptcy will immediately halt the process. You can generally catch up on your mortgage during your repayment period. Filing will also stop any wage garnishments and prevent your car from being repossessed.
Realizing that you can no longer keep up with your bills and monthly expenses can be a scary experience for anyone in Connecticut. You may have even considered selling off a few personal items to make ends meet, but this is only a temporary measure that does little more than put a bandaid on the problem. Instead, consider how you could benefit from filing for Chapter 13 bankruptcy. You can learn more about this process and which debts can be discharged right here on our website.
