When Connecticut residents realize they are overwhelmed with credit card debt, they may sometimes feel like this debt will never go away. However, there are several strategies people can use to remove this debt.
It is likely that many Connecticut residents either have one or more student loans or know someone who does. The overwhelming level of debt and difficulty paying it off has been well-documented recently in both national and local news.
One of the first things you might want to do after a bankruptcy discharge is to repair your credit. As you know, getting approved for a loan is one of the most effective ways to do this. You and other Connecticut residents may find it encouraging to learn that you may have many borrowing options after a bankruptcy. However, you should also learn how to recognize a valid lender from one that is considered predatory.
If you have a second mortgage on your Connecticut home, you know that your second mortgage holder has the same right as your primary mortgage holder to foreclose on your home if you fail to make your required mortgage payments. What you may not realize, however, is that if you file for Chapter 13 bankruptcy in order to reorganize your debts, you may be able to prevent your second mortgage holder from exercising its foreclosure rights. As SFGate.com explains, such a procedure goes by the name of lien stripping.
Our team at the Law Offices of Charles A. Maglieri understands that the prospect of filing for bankruptcy can be overwhelming and frightening for Connecticut residents. You might receive conflicting advice from numerous friends and associates. Bankruptcy should only be used as a last resort, they say, and it will ruin your credibility for life. They may also say you will be embarrassed if your employer finds out, or you may have difficulty finding a job if you are seeking employment with a personal bankruptcy on your record. It can give you a great deal of peace of mind to learn that these claims are largely outdated and untrue.
Credit cards are a way of life in Connecticut and all other states. Your bank or credit union constantly encourages you to apply for their credit card. The stores at which you shop do likewise. Often you receive unsolicited “pre-approved” credit card applications in the mail.
If you are a Connecticut resident who feels as though you are drowning in debt, you do have options available to you for debt relief. Bankruptcy options are designed to help you discard the debt in its entirety or to reorganize and set up payment plans in situations where your income cannot meet the demands of what you currently owe.
Those seeking debt relief in Connecticut no longer have access to the Making Home Affordable program due to the fact that the United States Treasury is no longer accepting new applications. There are alternatives, but debtors should beware of programs that seem too good to be true.