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.
The stay could prevent foreclosure on the person’s primary residence. It may also halt wage garnishments, and a stay could keep other secured possessions like a car safe from repossessions. Any lawsuits filed by creditors will be stopped, and they have to hold back further billing. Furthermore, creditors and debt collection agencies have to cease telephone harassment, and they will have to deal with the attorney rather than the consumer who is under bankruptcy protection.
The consumer must develop a repayment plan to pay outstanding debts over a period of three to five years, and if he or she does not default on any payments, remaining unsecured debts might be discharged at the end of the period. However, the individual will remain responsible for certain debts such as taxes, child support, student loans and more; however, exceptions may exist. Remaining debts that are typically discharged include credit cards, medical debts and other unsecured lines of credit.
This is a complicated field of the law that is best understood by experienced bankruptcy attorneys. A consultation with a lawyer can provide answers to questions along with explanations about the pros and cons of Chapter 13 bankruptcy as compared to other options. This knowledge could provide a Connecticut consumer with the ability to make informed decisions that might lead to him or her regaining financial stability.
Source: superpages.com, “Can Creditors Contact You During Bankruptcy?“, July 1, 2017
