Due to the extreme nature of the recent economic climate, more individuals than ever before have found themselves in a situation of financial hardship. Every sector of the job market has been affected by the recession and this has meant higher unemployment rates that have persisted for a number of years.
The result of company downsizing and the large number of jobs lost has also had a ripple effect in the number of people who face the prospect of filing personal bankruptcy.
If there is a glimmer of good news in this economically stressful time, it is the fact that people are now more informed than in the past about just what a bankruptcy means.
There is no stigma attached to filing bankruptcy, it has always been a choice for people who reach a state of insolvency, however it is now more commonly understood and seen as a reasonable and prudent decision to make.
A consultation with the Bankruptcy Lawyers Hartford CT can help you clarify if your specific financial situation would be alleviated by the filing of a bankruptcy action.
The process of filing bankruptcy can eliminate many of the debts that you are struggling to pay and immediately upon filing your case, the creditors are legally required to stop harrassing you.
Filing for personal bankruptcy can give you a fresh start, allowing you to begin making all future payments on time and rebuilding your credit history. Most people are able to still successfully apply for credit cards and loans, however the interest rates will be higher for the first few years following the bankruptcy case.
The Bankruptcy Lawyers Hartford CT can answer specific questions about exactly which debts cannot be discharged during the process. One example of a debt that cannot be erased by bankruptcy is federal taxes that may be in arrears.
Certain other personal debts are at your discretion as to whether you wish to discharge them or keep paying for them. Some people like to keep their car and the loan for it and use that good payment history as a way to bolster their credit rating.
Each bankruptcy case is unique and the attorney can consult with you as to the best course of action for your particular situation.