On behalf of Law Offices of Mark M. Kratter, LLC on February 16, 2012
Even as the national economy begins to rebound, many Connecticut residents continue to face economic hardship. Often through no fault of their own, many have found themselves unable to meet their financial obligations, such as paying off their credit card bills or making the monthly mortgage payment. However, fewer residents found themselves filing for bankruptcy in 2011 according to a new report released recently.
The report, released by The Warren Group on Feb. 9, showed that the number of personal bankruptcy filings decreased last year in Connecticut by 14 percent. These bankruptcy filings included both Chapter 7 and Chapter 13. Under a Chapter 7 bankruptcy, the law allows an individual to erase most of their debts, but they are forced to sell off many of their assets. By contrast, a Chapter 13 bankruptcy allows individuals to hold on to their assets, such as their home. However, they must put together a financial plan to pay off their debt in a three- to five- year period.
Despite the recent decrease, the number of personal bankruptcies is still higher than it was just a few years ago. In 2008, there were 7,239 filings in Connecticut. That compares to 8,518 filings in 2011.
The fact that there were fewer people filing for bankruptcy in 2011 than in 2010 may demonstrate that the economic picture is improving. However, it is certainly true that many continue to feel the pinch of recession, and many believe Connecticut residents are not out of the woods yet. In the meantime, those who are still struggling with their mortgage payments and other bills may consider the possibility of filing under either Chapter 7 or Chapter 13.
Source: Hartford Courant, "Connecticut bankruptcy filings down in 2011," Mara Lee, Feb. 9, 2012
