Should one ask the average Bloomfield resident to describe personal bankruptcy, the most likely answer would be that it forgives a person’s debts. What they are describing is a broad view of Chapter 7 bankruptcy. There is a good reason why most default to this assumption; Chapter 7 is the most popular form of bankruptcy. According to information shared by the American Bankruptcy Institute, nearly 64 percent of the non-business bankruptcy cases in the second quarter of 2018 were filed under Chapter 7.
As a Connecticut resident currently weighing your bankruptcy options, you may have been looking into Chapter 7, as it is one of the most popular choices. It offers many benefits, though there are some drawbacks as well. Today, we will look at both.
Dealing with the Internal Revenue Service can be a nightmare if you are a Connecticut resident who cannot afford to pay the federal taxes you owe. However, if you try to avoid dealing with the IRS over the taxes owed, it can impose tax liens on your property that are even more burdensome. You may wonder if you are able to discharge your tax debt by filing for Chapter 7 bankruptcy. According to FindLaw, it may be possible to discharge some tax debt through Chapter 7, but only under certain circumstances.
Filing for bankruptcy can have a major impact on your credit score, as well as your ability to purchase a home, take out a loan or make financial transactions in the future. There are ways, however, that you can rebuild your credit once your bankruptcy has been discharged. While extensive credit card expenses may have contributed to your need to file for bankruptcy in the first place, certain credit cards may help you rebuild your credit and finally get back on track. Some credit cards, on the other hand, may cause you to accumulate even more debt even after your bankruptcy is discharged.
As we discuss in numerous posts in this blog, you may want to explore other options before you file for bankruptcy or go through with a foreclosure. However, you and other Connecticut residents may decide that a personal bankruptcy is the best route to take, after all. You may not be able to get through insurmountable financial challenges on your own, or you may just need the fresh start that a Chapter 7 bankruptcy offers.
As many Americans struggle to keep up with their credit card debt, mortgage and other expenses, a number of people are forced to file for bankruptcy as a last resort. The most common cause of bankruptcy, however, is related to medical debt. Many people in Connecticut and across the United States can no longer keep up with extensive health care expenses. It is reported that one in three families in the U.S. struggle to pay for medical treatments, racking up credit card debt and draining their bank accounts in the process.
When people are behind on their credit card payments, mortgage payments or have excessive medical debt, they may begin to receive creditor calls. At first, the calls may start out as a friendly reminder for clients to make a payment on their loan. As time passes, however, those calls can turn a bit more sinister and, in some cases, become harassing. Once people file their paperwork for Chapter 7 bankruptcy, an automatic stay moves in place, which prohibits creditors from contacting debtors regarding their overdue payments.
At the Law Offices of Charles A. Maglieri in Connecticut, we see an ever growing number of senior citizens coming to us for help in filing bankruptcy. As the New York Times recently reported, if you are 65 or older, your inadequate pension and personal savings, plus the rising costs of medical care and prescription drugs, may have put you in the position where bankruptcy is your only realistic option. A recent study shows that seniors such as you represent 12.2 percent of all bankruptcy filers today. In 1991, seniors represented only 2.1 percent of filers.
At the Law Offices of Charles A. Maglieri in Connecticut, we help people file and successfully negotiate their way through bankruptcy. Once you begin your post-bankruptcy life, you should do several things to ensure that it will be far better than the one that led to your financial problems.
If you are a Connecticut resident whose credit card and other debt has ballooned to the point where it is no longer manageable, you may be thinking about filing bankruptcy under Chapter 7 as a way to discharge these debts. While you are correct that Chapter 7 usually discharges credit card debt, that is not always the case when it comes to credit card charges you make shortly before you file bankruptcy.