Law Offices of Jennifer LaRese, LLC
Call Today 203-583-8668

Chapter 13 Archives

More seniors faced with filing Chapter 7 or Chapter 13 bankruptcy

As Connecticut residents or others around the country reach retirement age, many dream of spending time with their families, traveling, taking up a new hobby or embarking on a different career. However, increasing numbers of retirees are experiencing financial turmoil. Reports from the Employee Benefit Research Institute show that the average amount of debt for seniors has risen from just over $32,000 to over $36,750 from 2010 to 2016. This is almost a 15 percent increase in just six years. Many older consumers are now considering filing for Chapter 7 or Chapter 13 bankruptcy for relief.

Knowing when Chapter 13 is the right choice for you

Dealing with the consequences of insurmountable debt is overwhelming and frustrating. The consequences of carrying a lot of debt can reach into various areas of your life, and eventually, you may face threats of serious penalties such as foreclosure or repossession. If you are facing the possibility of losing your Connecticut home because you are behind and you lack the ability to catch up, you may consider the benefits of filing for Chapter 13 bankruptcy. 

Chapter 13 bankruptcy and the benefits of the automatic stay

Many individuals in Connecticut and across the country have suffered through periods of significant financial burdens. The constant phone calls and collection letters that accompany overwhelming debt can add a great deal of stress to an already difficult situation, prompting some to explore the available options for relief. Those in search of protection from creditors may find it advisable to consider the potential benefits of filing for Chapter 13 bankruptcy, such as the automatic stay.

Knowing what to expect with Chapter 13 bankruptcy

Filing for bankruptcy is rarely a decision that is made lightly. In fact, someone who is struggling with overwhelming debt because of a divorce, medical expenses or other financial setback may have tried many other options to regain financial footing before deciding to investigate bankruptcy. Some in Connecticut may seek Chapter 7, which discharges some (and sometimes all) debts through the liquidation of nonexempt assets. However, those who have a steady income or otherwise do not qualify for this type of debt relief may find Chapter 13 works for them.

Chapter 13 bankruptcy provides relief in many situations

When the struggle to pay bills and keep food on the table becomes too great, Connecticut residents may explore options for debt relief. If alternatives for consolidating loans or avoiding creditors have failed, bankruptcy may be the best solution. Those who have a steady income will likely consider Chapter 13 to get their finances under control. Chapter 13 has several advantages over Chapter 7 liquidation bankruptcy.

What protection does Chapter 13 bankruptcy offer?

Consumers in Connecticut who have experienced unanticipated financial difficulties due to job loss, medical emergencies or other reasons may be exploring ways to get back on track. While some spend valuable time trying all kinds of remedies and getting deeper into debt, it might be worthwhile to research the protection offered by personal bankruptcy. The most attractive advantage of Chapter 13 bankruptcy may be the automatic stay that becomes effective as soon as the consumer files for bankruptcy.