Despite several reports of the improvement in the national economy, there are many Connecticut families that are still having financial problems. There are individuals who are unemployed, while others may be faced with unforeseen medical bills or mountains of credit card debt. Regardless of the reasons, there are consumers who are overwhelmed with their current monetary situation. At this point, some have reached the decision to file for either Chapter 7 or Chapter 13 Bankruptcy.
Certainly, a person has to determine which type of bankruptcy is better for them. Chapter 7 bankruptcy is characterized by a liquidation of assets where many debts are discharged. Chapter 13 involves establishing a repayment plan to pay back creditors. With either type, there are ways to begin building back financial strength.
Experts strongly recommend establishing a budget to keep a closer eye on one’s spending and saving habits. This is an excellent way to see exactly how much money is required to pay for basic needs and hopefully establish buffer funds for emergency or discretionary expenses. Another suggestion by financial advisers is to use cash whenever possible. This method has been shown to make consumers think more about their purchases. Of course, if someone has bills to pay, it is critical to pay them on time.
After bankruptcy, it is important to begin rebuilding favorable credit history. Therefore, start adding accounts or bills that are current when possible. It may be beneficial to obtain a secured credit card to help increase credit scores. After successfully using this type of card for a period of time, many may be able to transition to a regular credit card.
Filing for Chapter 7 or Chapter 13 bankruptcy is a major decision. A Connecticut bankruptcy attorney can help someone determine which type will be better for each situation. An experienced lawyer will work with clients to tailor a plan that will get their finances back on the road to recovery.