Debt is on the minds of a lot of Americans following what is often a costly holiday season. Connecticut residents may have spent more than they intended on gifts this year, leading some to re-evaluate their spending habits. But for some residents, debt is a far more challenging issue to overcome. In those circumstances, an experienced attorney can hep to determine how best to handle their debt issues, and for some, this could mean Chapter 7 bankruptcy relief.
Simply put, Chapter 7 bankruptcy is a way for debt to be formally discharged by a bankruptcy court. It is the most common form of bankruptcy, and is used to discharge certain types of unsecured debt, including credit card debts and medical debt. Other types of debt, including student loans and alimony payments, cannot usually be discharged in a Chapter 7 filing.
Debts are typically discharged within 60 days of filing for bankruptcy, at which point the filer’s legal obligation to pay the creditor terminates. In some cases, some of the debtor’s assets to help pay existing debts, but generally speaking, many assets are exempt from this process. However, the scenario varies from one case to another and depends on state and federal exemptions.
Connecticut residents considering Chapter 7 bankruptcy, or any other kind of debt relief program, can benefit by securing the support and guidance of an attorney in these circumstances. With the help of a seasoned professional, those facing debt issues can fully understand their options before choosing the best route for their given situation. This can help them select an avenue that will lead to greater financial stability in the future.
Source: Chicago Tribune, “Help Squad: Is bankruptcy right for you? And what kind?“, Cathy Cunningham, Jan. 3, 2018