When a person realizes that his or her debt has reached an unmanageable point, it might be time to think about bankruptcy. There are two types of consumer bankruptcy to consider -- Chapter 7 and Chapter 13. While a person's income may dictate which bankruptcy he or she qualifies for, there are times when both forms of bankruptcy are possible.
There is perhaps nothing inherently wrong with having a credit card. Some Connecticut consumers use credit cards to improve their credit scores, or to make specific purchases in order to earn reward points. Paying off the balance every month is often important to maximizing these benefits. Unfortunately, it is easy to end up carrying increasingly larger balances from month to month. As millennials struggle with growing balances, some may find that bankruptcy can be an effective tool for handling overwhelming amounts of debt.
Household debt has been growing for over a decade, but it does not all come down to consumer spending. Much of the consumer debt that people in Connecticut now live with is the result of borrowing just to survive the ongoing aftermath of the Great Recession. Experts are cautioning that the growing household debt could cause serious problems for some people should the country hit another recession. Economic decline could be a common factor among those who choose to file for bankruptcy.
Most people want to know what will happen to their homes and vehicles during bankruptcy. It is understandable to feel concerned about two things that are so integral to the safety and security of a person. However, it is important for people in Connecticut to understand how personal bankruptcy will also affect their financial accounts.