What are the Different Types of Debt Relief and Bankruptcy?

First you need to understand the different type of Debt to understand what type of Debt relief is available.

Unsecured Debt vs. Secured Debt

A secured loan, usually for a vehicle or property (e.g. mortgage), is a loan in which collateral (the car or the house) is pledged to secure the loan. If a borrower defaults or somehow violates a contractual obligation under these secured loans, the lender may repossess the asset, unless the borrower has bankruptcy protection. By contrast, an unsecured loan is not connected to any asset and can be eliminated through a properly prepared and filed Chapter 7 bankruptcy.

If you continue to struggle and find yourself falling behind on minimum payments on high-interest credit cards, you need to seek the advice of a professional who knows all the avenues and legal options that provide success for individuals, families and small businesses throughout Connecticut.

Debt Relief When You Need A Fresh Financial Start

Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings provide an automatic stay, which halts liens, levies, garnishments, lawsuits or collection actions. The bankruptcy filing also relieves you or your business of various types of unsecured debt.

When your bills become overwhelming, proper bankruptcy advice from an experienced and specialized attorney can relieve you and your business from all types of unsecured and secured debt and credit card dependence. Any high interest debt can destroy your debt-to-income ratio and threaten essential possessions like cars and homes.

Asset Protection and Debt Relief Through Bankruptcy

If you’re facing overwhelming debt or other unpaid obligations, or even lawsuits, our bankruptcy attorneys can protect your assets from repossession, garnishments, liens or all other forms of collection actions. Through prompt and experienced use of bankruptcy laws, we can provide you with full unsecured and secured debt relief while still protecting your most important assets.

To learn more, read our article on How to File for Bankruptcy.

Can I Avoid Bankruptcy?

No one ever sets out to file bankruptcy as a first option. At The Law Offices of Neil Crane, we have talked with thousands of people who wished to avoid bankruptcy. With the help of our Hamden, Connecticut, law firm, we are able to negotiate with creditors for our clients where a great many were able to push aside their financial problems and find financial health again.

Avoiding bankruptcy is often easier than it seems. With sound financial decisions, many people are able to create a budget and stick with it. As lawyers who care about our clients’ well-being, we often recommend these debt solutions:

  •  Create a budget and stick with it, even if it means taking a brown bag lunch and cutting back on extras, like entertainment, and money spent on clothes.
  •  Your credit score is not as important to financial security as your bank account balance.
  •  To avoid bankruptcy, your home should never be used as a bank.
  •  The best way to reduce debt is to cut spending on the “extras” and to put that money towards payment on debt principal.
  •  The success rate for people who seek financial help early on is greater than for those who wait until it is too late. It is never too early to talk with a lawyer about debt help. We recommend that you contact us at 203-230-2233 before your situation is critical.

Unfortunately, many people who visit our Web site are already facing difficult times. Many have been scammed by credit consolidation companies. Many more do not want to consider bankruptcy because they fear what their families, friends, and coworkers will think.

When Bankruptcy is Unavoidable

Sometimes people face bankruptcy for reasons completely beyond their control. They experience a job loss, extensive medical bills due to an illness, or a divorce that forced the resources that previously supported only one household to now support two.

In these situations, Chapter 7 and Chapter 13 bankruptcy may be a good option for restoring financial health. At The Law Offices of Neil Crane, we guide you through the process so that you are well prepared to achieve the best possible results — moving forward and building a successful life after bankruptcy.

Schedule an Appointment With Us

Our lawyers, paralegals, and support staff are committed to helping you avoid bankruptcy. For this reason, we work around your schedule. We offer flexible office hours on evenings and weekends by appointment. We can also meet with you at other convenient locations besides our Hamden, Connecticut, law office.

We offer a free consultation regarding debt reduction. Please do not hesitate to call us today at 203-230-2233, or complete our online contact form to discuss your questions and concerns with an experienced attorney. Understand when you should talk to a lawyer in our article.