Life can be full of unanticipated twist and turns, some of which can be extremely challenging. Some Connecticut consumers may not realize that circumstances can drive them into situations that force them to consider filing for Chapter 7 bankruptcy. It is important to understand that such a step is a reflection of the situation rather than a reflection of the individual.
One example is a 60-year-old man who was divorced and relying on social security disability payments as sole income. However, after suffering a heart attack in 2015, he waited nine months before disability payments started. He used half of his life savings and incurred credit card debt to support himself during that time. Now he sits, with almost $8,000 of credit card debt and an insignificant income, seeking a solution to his dilemma.
This man has two options -- he can default on credit card payments and fend off debt collectors and possible lawsuits, or stop all that by filing for bankruptcy. Although there are costs related to a bankruptcy filing, it can be worth it. Upon filing bankruptcy an automatic stay will put an end to any further creditor action, and unsecured debts such as credit card and medical debt can be discharged.
With the help of an experienced bankruptcy attorney, a Connecticut consumer who is facing overwhelming debts can file for Chapter 7 bankruptcy. Within three months the door could be legally closed on debts and the related stress about demanding debt collectors and the impact it has on the person's health. The lawyer can explain the process and provide the necessary support and guidance throughout the proceedings.
Source: Huffington Post, "I Can't Afford My Credit Card Debt and My Medications", Steve Rhode, Aug. 31, 2017