debt relief

In 2005, the U.S. bankruptcy laws were changed so as to prevent abuse of the process. That is, the change in the law was meant to prohibit those who could afford to pay their debt from filing for bankruptcy. However, one unfortunate consequence of the 2005 reforms is that it made filing for bankruptcy more expensive.

Many Connecticut residents and others across the country are starting to bounce back from the effects of the Great Recession and are beginning to get their finances in order. In the last few years, many individuals filed for bankruptcy because of financial conditions out of their control. Yet, according to the latest financial information, the number of personal bankruptcy filings is expected to keep decreasing for at least the remainder of 2012.

Many Connecticut residents may know firsthand the stress associated with a large debt burden. Indeed, it may feel overwhelming, if not paralyzing. Fortunately, though, U.S. federal law allows for debtors to escape from their debt burden by filing for bankruptcy.

A baby stroller company with its headquarters in Norwalk, Connecticut, recently filed for bankruptcy following a product recall of about a million of its strollers. The company, Maclaren, is internationally renowned for its strollers, which are often seen in well-to-do neighborhoods. The company has units in Europe, Hong Kong and North America, but the U.S. unit filed for Chapter 7 bankruptcy late last year.

There are perhaps few things more terrifying than the constant calls of debt collectors and letters filled with dire warnings. Fortunately, more and more Connecticut residents are gaining some control over their financial obligations. In fact, according to Equifax, which is a credit reporting service, consumers in the state have paid down their credit card debt and outstanding financial obligations by a significant amount.

In these tough economic times, many Connecticut residents have become all too familiar with foreclosure proceedings. Whether it happens to a relative, a neighbor or themselves, many residents have been affected by foreclosures in one way or another ever since the housing crisis began in 2008. In that vein, readers of this blog may be interested to hear of the financial problems faced by the town manager of Enfield, Connecticut.

Owning a home used to be an essential element in attaining the ideal American Dream. Now, it seems for many homeowners, their mortgage has made this once wonderful dream the American nightmare. Many people are struggling to make their mortgage payments, but now new relief could be on the way. A proposal currently being considered could help those in Chapter 13 bankruptcy reduce the total amount owed on their debt.

The United States Attorney for the District of Connecticut sentenced a Connecticut man to 18 months in prison late last month. The man was found guilty of orchestrating a $4 million mortgage fraud scheme that eventually resulted in foreclosure on several of his properties. Following his imprisonment, he will be required to undergo three years of supervised release.

Connecticut residents are gradually paying off their debt while showing an interest in spending more. In late November the New York Federal Reserve Bank said mortgage debt in the United States dropped from July to September. Consumer debt is 0.6 percent lower as compared to the second quarter, primarily due to a 1.3 percent drop in mortgage loan debt.

Connecticut residents may be shocked to hear that in October, there was one foreclosure filing for every 1,127 households in the state. That grim statistic is nonetheless an improvement from last year, when foreclosure filings were about 38 percent higher. So although things are improving, too many residents are still seeking debt relief as they struggle with their financial obligations.