How do I know if my debt is too much to be properly resolved?

The best indicator is your debt-to-income ratio. You can calculate this by taking the total amount of money that you spend each month paying off your debt (this includes all recurring debt, such as mortgages, car loans, child support payments and credit card payments) and dividing by your gross monthly income. The lower the number, the better. If you do not have extra money coming in, then NO debt consolidation plan can resolve it.

Read more about Debt-to-Income Ratio

Steps to Improve Credit Score After Bankruptcy

Steps to Improve Credit Score After Bankruptcy

Despite common myths to the contrary, obtaining a good credit score after bankruptcy is incredibly easy.  Your debt is reduced or eliminated, your credit score begins to climb.  Credit scores climb after bankruptcies because you have no debt.

After going through bankruptcy, consumers learn a powerful lesson and understand how to build credit and avoid debt.  It’s the key to keeping their new-found financial freedom.  They’ve gained the financial IQ that it takes to discern credit from debt, what is good for their financial future and what is not.  They take advantage of their fresh start to improve credit after bankruptcy.

Bankruptcy Helps Thousands of Connecticut Residents Each Year

The overall economy and current job market in Connecticut makes bankruptcy relief the best option for many hardworking Connecticut residents who can’t make ends meet and need help  under the Bankruptcy Code.

Important questions must be addressed before deciding if bankruptcy is the appropriate answer. These questions include what might happen to the family home, which debt is eligible to be discharged, as well as how bankruptcy might affect my credit down the road.


Proper Lending and Affordable Borrowing After Bankruptcy

 High Credit Scores and affordable borrowing depends on three factors:

  1. Your Debt-to-Income Ratio – What do you make and what have you already committed to spending on interest payments?
  2. Credit Score – Your FICO score which is 35% based on utilization, a marker of your debt-to-income ratio above
  3. Your Savings Account Balance – What have you saved?  What’s your reserve?  What’s your cushion?  This determines how badly you need to borrow.  Savings should be your cushion, not available credit.

Follow these recommendations after bankruptcy or even before:

  • Understand that credit cards are a barrier for your financial future. With high interest rates, they are the number one roadblock to your family’s financial future.
  • Use cash, and if not, use plastic like cash. Use it and pay it off in full each month.  Never carry a balance.
  • Understand that the financial lending industry does not have the hardworking middle class’ best interest at heart.    Understand that they lend you money because it benefits them and not you.
  • Secured credit cards are the best credit cards because they report to all three credit bureaus and you can’t spend beyond your savings.
  • Don’t use store cards, they hurt your score.
  • Keep available credit balance high.
  • Never take a rescue loan.
  • Never use private internet lenders.
  • If it’s too good to be true, it is.
  • Never be embarrassed – The bravest, strongest, best people we’ve ever met have been our bankruptcy clients. They have a desire to work, to pay and do the right thing.
  • Try credit unions – They’re local, they’re human, they’re not for members only and they have good rates. If they approve you, you can probably afford it.

This list is not exhaustive, but following these recommendations can jump start even a recent bankruptcy filer on the road to a sound financial future. Bankruptcy is designed to give debtors a fresh start, as people emerge from bankruptcy with a positive outlook for the future.

Anyone who is considering bankruptcy or wondering how they can rebuild their credit should speak with a qualified attorney immediately. The experience bankruptcy attorneys provide is invaluable before, during and after the bankruptcy process.


Never has Debt Relief been more helpful and never has great credit after bankruptcy been so easy to attain.

To learn more about bankruptcy debt relief or your credit score after bankruptcy, call Attorney Neil Crane at 203-230-2233 and speak to him directly about your individual questions.  Get educated for free.


If the minimum monthly payments for your car loan, home mortgage, credit card or any personal loan are becoming too difficult to manage, if you find yourself “robbing Peter to pay Paul,” it is important to seek professional counsel quickly. At The Law Offices of Neil Crane, LLC, this is what we do. We have over 30 years of history dedicated to helping a wide range of Connecticut clients with different issues and needs find personally crafted debt relief and budgeting help. We create a plan and an approach to resolve debt with practical solutions. With our dedication, knowledge and experience, we can help you restructure or discharge debt completely with all available options including bankruptcy.

Contact us today to schedule a free initial consultation. We will promptly meet with you to discuss your concerns, your full financial situation and the proper options and alternatives for your problems during our first meeting. Our insightful, dedicated Connecticut attorneys serve clients at offices across the state, including Hamden, Bridgeport, Waterbury, Rocky Hill and Ridgefield.

Any Type of Loan Can Be Stopped From Direct Deduction

Stopping automatic payments will not affect your standing with your lender. It is important to review automatic deductions and your overall financial issues with a highly qualified attorney before deciding which payments to cut back on. Making these decisions and significantly altering your payment schedule without the counsel of an experienced attorney could have negative consequences if it’s not done as part of a customized, overall plan for financial recovery.

Our law firm can help you negotiate more favorable loan terms or restructure debt with or without a bankruptcy filing. It is critical to consider all your options with a professional before proceeding. We can work aggressively on your behalf to protect your assets and ensure that your rights are not violated by overly aggressive lenders or unscrupulous debt collectors. With over 15,000 satisfied clients, we know all your options. Call us.

Contact Our Connecticut Bankruptcy Lawyers

We offer a free initial consultation, and we can provide solutions to help you regain control of your finances. Call us today at 203-230-2233, or complete our online contact form. When you call us, you will always speak to a live person, not our voicemail. We are committed to providing excellent service and legal protection in a comfortable, non-threatening environment

What is the difference between Foreclosure or Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a federal court procedure for the deceleration and repayment of mortgage obligations along with the reduction or elimination of all other forms of debt. The filing of a Chapter 13 bankruptcy creates an immediate stop – known as an “automatic stay” – of the foreclosure process, halting a pending foreclosure and allowing for repayment of the past-due mortgage installments, and other debt obligations, over a three- to five-year time period. Chapter 13 bankruptcy will allow you to begin regularly scheduled monthly mortgage payments as if no previous default had ever occurred.

Read more about Chapter 13 Bankruptcy