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Bankruptcy Archives

The ACA has done little to address crippling medical bills

About two-thirds of the people who file personal bankruptcies in Connecticut and around the country each year do so to avoid crushing medical bills, according to a recent study published in American Journal of Public Health. A team of researchers that included a doctor from the Hunter College of City University of New York, two lawyers and a Consumer Bankruptcy Project sociologist came to this conclusion after studying 910 Chapter 7 and Chapter 13 bankruptcy petitions filed between 2013 and 2016.

Reasons to consider a living will

Life-altering accidents and infirmities are not conversations that Connecticut residents like to discuss. Unless they are faced with a terminal illness or unless they lose someone close to them, most people would prefer to focus their mind on things like their plans for today or the future. This is why many procrastinate or completely put off creating a living will or a health care directive.

How student loans are dealt with during a bankruptcy

Prior to 1976, Connecticut residents could potentially have their student loans discharged through bankruptcy. In 1976, the law was amended to include student loans that had been in repayment for at least five years. That was later extended to seven years before Congress moved to exclude student loans from most bankruptcy cases. Today, an individual can only have such debt wiped away in bankruptcy if making payments constitutes a hardship.

Dischargeability of tax debts in bankruptcy

Bankruptcy is an option for people in Connecticut who are struggling to pay off their debts, but there are certain types of debts that may not be discharged. Tax debts are not dischargeable unless they meet special requirements. Generally speaking, tax debts cannot be discharged if they are withholding trust fund taxes for which the person is liable, associated with a tax liability for which the person did not file a return or associated with a frivolous or fraudulent return.