Filing for bankruptcy is a way for people in Connecticut to address their debts that they can no longer repay. However, the process is much more involved than simply filing and then waiting for debt to disappear. There are generally two types of personal bankruptcy that consumers can use -- Chapter 7 and Chapter 13. Here are a few things that may help individuals better understand the process of personal 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.
For some people, the monthly bills seem to accumulate slowly over time. For others, several unexpected expenses seem to hit all at once. No matter the reason a person finds him or herself so deeply in debt that it seems impossible to get out, bankruptcy can potentially be a viable option. But how can a person in Connecticut figure out whether personal bankruptcy is the right decision? Here are a few things to consider.
Disability benefits play an important role in many people's finances, helping them to stay afloat even when they might be struggling with money and bills. In most cases, filing for personal bankruptcy will not affect a person's ability to continue receiving disability benefits. For Connecticut veterans this is not always the case.
It is not secret that the cost of college is far outside of the reach of an average Connecticut student. Even with scholarships and grants, few can afford to fork out fistfuls of cash for their classes. With ever-growing class loads, working more than part time during college years is also difficult if not impossible for some. These and other factors have culminated into a growing crisis for young adults, which personal bankruptcy could be one option for addressing.
Balancing multiple monthly payments is a juggling act that most people in Connecticut cannot keep up with forever. In some situations, debt consolidation can help individuals create more manageable payment schedules that get them back on financial track. When this is not possible, personal bankruptcy may be a more effective option for relief.
Credit card debt might feel like an unavoidable feature of modern life, and rising balances seem to support this idea. Consumers in Connecticut and across the rest of the United States seem increasingly willing to take on more and more debt on their credit cards, with the current average debt for individuals at $5,331. So are those with more debt in worse shape and more likely to file for personal bankruptcy than those who owe less? Maybe, but maybe not.
Connecticut job seekers prioritize several different factors when looking for work. From looking for certain base salaries to commuting distances, one of the biggest considerations is often employer-offered health insurance. Unfortunately, even securing a decent health insurance policy can't fully immunize a person to falling into medical debt, which is a significant contributor to personal bankruptcy.
Filing for bankruptcy is often the most effective way for struggling Connecticut consumers to deal with their overwhelming debt. Despite this, fewer people are pursuing personal bankruptcy than just a handful of years ago. Experts have a few ideas as to why this is, including things like improved health care coverage and the costs associated with filing.
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.