What Happens When COVID-19 Mortgage Forbearance is Over?

What Happens When COVID-19 Mortgage Forbearance is Over?

If you are facing COVID-19-related financial hardships, many federally-backed and most non-federal mortgage lenders offer moratorium periods of temporary payment suspension or mortgage forbearance. If you have any type of decrease in income and you agree to this suspension of payment or mortgage forbearance, you will be allowed to miss payments temporarily.  However, it is absolutely critical that you fully understand the terms of this relief plan.

Remember: mortgage forbearance is not the same as mortgage debt forgiveness. Whatever payments are deferred by your mortgage lender will still need to be paid at some point, whether it be in a lump sum at the end of the moratorium period or mortgage forbearance, larger installments, or added to the end of your mortgage. By agreement, there will be no additional fees or interest tacked onto your federally-owned mortgage, but it may still accrue regular interest. If your mortgage is not owned by the government, contact your mortgage loan servicer and find out what it’s moratorium or mortgage forbearance terms are.

Do not forget that Banks are not on your side even in an uncertain, frightening time like this. They extend a helping hand of payment suspension but it is an extremely short-term solution that, overall, still does not allow you to save any money. If your back is against the wall because of COVID-19-caused difficulty or any overwhelming debt that has been building since even before this crisis, we can help!  Contact the Law Offices of Neil Crane, LLC to discuss your options of financial recovery and stability today.

How Do I Prioritize my Finances During the Pandemic?

How Do I Prioritize my Finances During the Pandemic?

On top of huge concern for health and safety, many Connecticut residents are also facing some very overwhelming financial obstacles in the wake of the COVID-19 pandemic. In such an unprecedented time, it is critical to keep in mind what is most important regarding your financial circumstances.

Firstly, pay what is absolutely necessary. Food and utilities come first. Secondly, if you are unable to make payments on your mortgage or rent, there may be temporary protection from your Bank or Landlord. Government-backed lenders and many other banks are offering moratoriums on your payments and many landlords are willing to be accommodating. The foreclosure courts are briefly on hold.  The eviction courts are closed. You will not lose your house or apartment immediately.  Keep Thorough Documentation and Records. As things change with time, there will likely be confusion, so confirm everything you can in writing especially with the Banks, who don’t keep transparent records or designate specific people responsible for your account.  Long waits and numerous changing customer representatives aren’t going to evidence your account.  Keep records.

Nonetheless, these are all temporary fixes and you need a more permanent plan. If you have lost your job or your household has had a decrease in income, budgeting can still fail as you try to keep you and your family financially afloat, Mortgage moratoriums and temporary rent suspensions are also extremely short-term solutions, but there are long-term answers and smart ways to survive tough economic times and overwhelming debt. You have a legal right to financial recovery.

If it is difficult for you and your family to get by, please contact the Law Offices of Neil Crane, LLC. Contradicting information and constant policy changes make understanding your finances extremely challenging. Our team of attorneys can clarify what is actually going on and analyze your financial circumstances to help you explore your options.

Delinquent State Income Tax Relief

Taxes are a burden for everyone. When times are tough, it can be difficult to get the money to pay your taxes or find the time to file them. However, if you fail to file or pay your state income taxes, you could face serious consequences. It is important to act quickly to resolve your tax concerns so you can avoid penalties, interest and potential jail time.

At The Law Offices of Neil Crane, LLC, we understand how overwhelming delinquent Connecticut state income tax can be. Our tax relief attorneys can help you understand your options, devise a workable solution and guide you through the process of resolving your tax concerns with the Connecticut Department of Revenue Services.

Penalties, Interest and Criminal Charges for Delinquent State Income Taxes

The longer you wait to file or pay your Connecticut state income taxes, the worse your situation can become. First, penalties and interest will be added to the amount you already owe.

  • $50 penalty for late filing
  • Penalty of a percentage of unpaid taxes for late payment
  • Interest charged for each month that you do not pay

This can add up quickly and lead to even more overwhelming debt if you do not take care of it right away.

Additionally, if the Connecticut Department of Revenue Services finds that you have willfully understated your taxes or blocked the department from collecting taxes, you can be charged a penalty that is equal to the amount you owe. This effectively doubles your taxes, which can be an enormous strain on any individual, family or business.

If you refuse to pay your taxes or keep tax records with malicious intent, you can be charged with criminal fraud.

Stopping Collection Actions

Connecticut will not simply sit idly by and wait for you to pay your income taxes. They can take action to collect the income tax they believe you owe. This includes:

  • Wage garnishment
  • Seizure of assets (known as levying)
  • Placing a lien on your property

If the state has taken action against you to collect on your tax debt, we can help you. Since 1983, our attorneys have helped clients obtain debt relief from unpaid state income taxes in Connecticut. You don’t need to handle your tax debt issues alone. We will stand by your side and provide you with the advice and representation you need when facing a collection action before the Connecticut Department of Revenue Services.

We will walk you through your legal options, including:

  • Submitting an offer-in-compromise if you cannot afford to pay the taxes
  • Obtaining an installment agreement so you can pay your tax debt over time
  • Submitting a penalty waiver if you had reasonable cause not to pay or file your taxes

Our experience extends beyond handling tax debt issues. Our attorneys focus our practice on handling all types of debt relief, including bankruptcy, modifications and other solutions. If your debts are out of control, bankruptcy can help you to stop collection actions, including actions by the Connecticut Department of Revenue Services, and get your finances back under control.

Contact Our Connecticut Back State Income Tax Attorneys

Turn to our firm for experienced guidance with any tax debt issues you face. Call us today at 203-230-2233, or contact us online for a free initial consultation. We have office locations in Hamden, New Haven, Bridgeport, Ridgefield, Waterbury and Rocky Hill.

Small Business Bankruptcy Lawyer

Talk With a Lawyer About Your Struggling Business

It is rare that a business struggles and does not leave its mark on the business owners’ personal life. Because small business debt is personally signed, there is an incredible link between business debt and personal assets. Our many years of experience with small business reorganizations can be of invaluable assistance when your insurmountable business debt is threatening your personal finances.

At The Law Offices of Neil Crane, LLC, we understand that the financial problems of many small businesses have a personal component, and that finding successful debt relief solutions means being able to solve both personal and business challenges. With extensive experience in small business debt relief, our Connecticut attorneys know that successful resolution depends on our looking at the broader picture.

 

Saving Your Small Business: Start by Calling

At The Law Offices of Neil Crane, LLC, representing small to mid-sized businesses through all types of small business turn-arounds has been a focus of our law practice since the firm’s inception in 1983. Throughout this time, we have built a reputation for serving our clients well.

When your business is in trouble, personally dealing with your credit problems takes your focus away from your business. When you come to us for legal counsel in resolving your business debt problems, we can help you put an end to creditor calls, stop collection efforts initiated through lawsuits and deal with other business debt collection problems. This enables you to focus on the things that really matter.

Chapter 11 Attorneys Serving Businesses Throughout Connecticut

From our offices in Hamden, New Haven, Bridgeport, Waterbury, Rocky Hill, and Ridgefield, our business bankruptcy lawyers work with small to medium-sized businesses throughout Connecticut in devising solutions to overcome insolvency problems. We assist small business owners with strategies including:

Learn more about how our attorneys can help you obtain the debt relief necessary to save your small business from insolvency.

 

Small business bankruptcy can be the lifeline you and your business need.

Our commitment to clients is reflected in the fact that we do not utilize voice mail or answering machines. People who call us during business hours speak with a live person — not an automated answering system. Messages left for our lawyers are returned promptly, and people speak directly with a lawyer when they call.

 Debt Relief to Save Your Small Business

The backbone of Connecticut’s economy is the small business just like yours. Unfortunately, with the proliferation of easy access to consumer debt, many small businesses fail as a result of increased debt burdens that negatively affect the profitability of the business and the personal debt load of small business owners.

Serving clients from several office locations throughout Connecticut, The Law Offices of Neil Crane, LLC, is dedicated to assisting Connecticut small business owners who confront personal and business debt problems and need to obtain solid professional advice on debt relief in order to save their small business and personal finances.

Small businesses have become significantly beholden to high interest consumer debt issuers like credit card companies and personal signature loans. Unlike prior years when small businesses derived most of their capital from local banks at reasonable commercial rates, the average small business today is capitalized by high interest institutional lenders like credit card companies and big banks. These types of lenders pay little attention to providing small businesses with the right types of debt that properly fit the needs and resources of a small business.

As a consequence, it’s easy for small businesses to get access to the wrong types of credit and then falter under the weight of insurmountable monthly payments. This overburdening debt can make even the best of small businesses go bad — and when it goes bad in your small business, it plays out badly at home. The good news is that these types of debts are very negotiable.

The Good News for Small Businesses Facing Debt Problems:

  • Small business debt is often unsecured.
  • Small business debt is very negotiable.
  • Tough economic times make small business creditors even more negotiable.
  • Most small businesses are built on the reputation and expertise/knowledge of owners and key employees. No creditors can take who you know or what you know.
  • Solving small business problems gives owners a second chance and the knowledge to forever avoid similar mistakes in the future.

 

Small Business Reorganization Strategies

As experienced Bridgeport small business bankruptcy lawyers, we can advise you of the multitude of debt relief strategies available to small business owners, explain the advantages of each option and guide you through the implementation of these debt relief solutions. Each strategy offers unique benefits for small business owners, such as:

  • Out-of-court solutions:Allows for modifications, reduction of overall debt, and debt service without use of a court
  • Court reorganizations/Chapter 11 bankruptcy:Court protection from past bills, and monthly payments allow for modification or elimination of secured and unsecured tax debt
  • Small business Chapter 11 bankruptcy:Fast, affordable, allows you to keep your assets, allows special treatment for important vendors

 

Personal Solutions That Save the Business

Given the connection between personal signatures and business debt, resolving personal debt problems can often solve business problems. Modern day financing reliance on personal pre-approved debt to capitalize businesses has left experienced legal practitioners with a multitude of great options for solving small business problems linked to personal signature consumer debt. Never have more alternatives, options or opportunities been available to borrowers with experienced counsel. The combination of consumer debt and low values has made great opportunities available now with recoveries and future appreciation in values belonging solely to the small business and its owners.

Connecticut Chapter 11 Reorganization Lawyers With the Experience to Help Small Business Owners Obtain Debt Relief

Connecticut is a state of hardworking small business owners who work tirelessly to make their businesses a success. But sometimes even more working hours won’t solve the problem. We can help. We’ve assisted and reorganized hundreds of Connecticut small businesses just like yours, providing debt relief, allowing struggling businesses to return to profitability and thrive in a way that protects the jobs of employees and the lives and assets of small business owners throughout Connecticut.

Contact Our Small Business Bankruptcy Debt Relief Lawyers in Connecticut

No matter how your business is structured, whether you have organized as an Inc., d.b.a. LLP or an LLC, Chapter 11 bankruptcy may be a solution for you. Get started by calling us for a free consultation. Call us today at 203-230-2233, or complete our online contact form to discuss your questions and concerns with an experienced attorney.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Small Business Protection in Bankruptcy

If you are filing for personal bankruptcy, it is our job to make sure your business is protected. Small businesses, LLCs and closely held corporations are our clients’ source of future income, and properly prepared bankruptcy filings can protect these businesses throughout the bankruptcy process. If you are filing to preserve your business under Chapter 11 business bankruptcy, or filing under Chapter 13, your personal assets can be protected. Properly utilized, the law protects your personal assets from your business debt.

Thorough and thoughtful financial planning by experienced legal counsel is essential to protect yourself and your business in bankruptcy. At The Law Offices of Neil Crane, LLC, our lawyers help small-business owners throughout Connecticut take the right steps to preserve their businesses. Home foreclosure, credit card debt, tax debt and any other personal financial problems can be properly resolved without interrupting the finances of your business.

Contact us today to schedule a free initial consultation. We take the time to discuss your full financial situation, understand your objectives and work diligently toward your financial fresh start. Our attorneys serve clients at offices across the state, including Hamden, New Haven, Bridgeport, Waterbury, Rocky Hill and Ridgefield.

We Focus On Keeping Your Business Open and Profitable

Your business is your livelihood, and our lawyers can help you protect your business. We can help it to prosper despite a variety of difficult financial situations. Even if your best debt resolution option is filing for small-business bankruptcy, your business assets and the well-being of your business can still be protected. Your revenue streams can often improve as a result of a properly implemented business or personal bankruptcy.

A solid bankruptcy plan and dedicated legal representation can protect your business without risk of loss or business interruption. In the hands of our professional legal counsel, your business will not be touched by creditors or the court. Instead, it will be relieved to proceed forward and become more profitable. We know that the success and security of your business is integral to your future and that of your employees.

Filing for bankruptcy with our guidance and representation will not jeopardize your business. Personal debt can be eliminated so that high-interest consumer borrowings used for your business will no longer threaten your personal or business finances.

Contact a Small Business Debt Lawyer | Connecticut Business Bankruptcy Lawyer

Your business interests and your personal livelihood demand professional protection. Call us today at 203-230-2233, or complete our online contact form to schedule a free initial consultation. When you call us, you will always speak to an attorney. We do not use voicemail. We are committed to providing excellent service and legal protection.

The Connection Between Business Debt and Personal Debt

What Happens at Work Plays Out at Home for Small Business Owners

Many Connecticut small business owners find themselves faltering under the weight of credit lines, credit cards and even second mortgages that jeopardize their homes in an effort to support their small businesses. Connecticut small business owners continually use their homes or credit cards to support their small business needs. This creates a dangerous connection between business success and personal financial failure. Business debt almost always involves personal signatures that create personal liability for all types of business obligations. What happens at work plays out at home for small business owners.

It will take an experienced small business bankruptcy lawyer to resolve the problems that have already occurred in order to find a solution that works to reduce or eliminate the debt burdens of your small business.  Mistakes can happen easily. Solutions require experienced legal counsel with the knowledge and commitment to save your business and your family.

Personal Solutions Can Save Your Small Business

Given the connection between personal signatures and business debt, resolving personal debt problems can actually help to solve small business debt problems. Because of the connection between personal debt and business lending, our experienced legal professionals know how to properly utilize a variety of legal avenues to solve business problems by relieving personal debt. Never have more alternatives, options or opportunities been available to borrowers with experienced counsel. At the Law Offices of Neil Crane, we understand the problems and solutions for Connecticut small business owners.

The Good News for Small Businesses Facing Debt Problems:

  • Small business obligations are often unsecured debt, which is easily subject to elimination, reduction or negotiation.
  • In tough economic times, small business lenders don’t often seek to collect from business assets.
  • Knowledge is power: Most small businesses are built on the reputation and expertise/knowledge of owners and key employees. No creditors can take who you know or what you know.
  • Small business problems don’t often reoccur. Solving small business problems gives owners a second chance and the knowledge to avoid similar mistakes in the future.

 

To learn more about avoiding common pitfalls and maintaining financial success for your small business, contact the small business debt relief attorneys at the Law Offices of Neil Crane.

Get the professional service and advice that you and your small business deserve. Call the experienced small business debt solutions attorneys at the Law Offices of Neil Crane at 203-230-2233, or fill out our simple online Contact Form.