Household debt in Connecticut and the rest of the United States rose to its highest level at the end of 2022 since the financial crisis that sparked the 2008 recession. The average household had debt totaling $142,680 at the end of the year. Many consumers cannot...
Chapter 7 Bankruptcy
Understanding the “means test” in chapter 7 bankruptcy
When people think of filing for bankruptcy in Connecticut, the first thing that comes to mind is Chapter 7 bankruptcy. This type of bankruptcy is often considered the "gold standard" because it allows people to discharge their debts and start over fresh. When filing...
The automatic stay in Chapter 7 bankruptcy
When a consumer is overwhelmed with debt in Connecticut, Chapter 7 bankruptcy could give them relief. It discharges some unsecured debts through selling of nonexempt property to pay creditors. Chapter 7 is often completed faster than other types of bankruptcy, and it...
Puncturing some bankruptcy myths
Connecticut residents who are heavily in debt might consider turning to bankruptcy. Some may be reluctant to file due to some myths. However, when you learn that these things are only misconceptions, it can make you feel more comfortable about the process. You’ll...
What is liquidation bankruptcy?
When you file for Chapter 7 bankruptcy in Connecticut, you'll have the opportunity to discharge most of your debts after you go through the process of liquidation. This allows you to pay off your creditors and start over with a clean slate. What is liquidation? In...
When is Chapter 7 bankruptcy a better option than Chapter 13?
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...
Chapter 7 bankruptcy could help people with serious medical debt
Medical bills are one of the most common types of debt carried by Connecticut consumers, and for many, it can be overwhelming. One medical emergency, broken bone or extended illness, and families could find themselves facing a debt burden they can never hope to manage...
Key differences between Chapter 7 and Chapter 13 bankruptcy
Filing for bankruptcy can be an essential lifeline for Connecticut consumers who are drowning in debt. However, deciding to file for bankruptcy is not quite as simple as filing a piece of paper and then going from there. Before any of that can take place, individuals...
Rising credit card balances could lead to Chapter 7 bankruptcy
Americans have been working hard to pay off their credit card debt. Consumers in Connecticut and across the rest of the nation paid off a collective $40.8 billion in the first quarter of 2018 alone, but it still might not be enough to dig themselves out of debt. When...
Chapter 7 bankruptcy may not as widely used as you may think
The Bankruptcy Abuse Prevention and Consumer Protection Act -- BAPCPA -- of 2005 cut off a significant number of Americans from pursuing Chapter 7. However, many people in Connecticut might be surprised to learn that not only do they still qualify for Chapter 7...
