Oct 11, 2020 | Bankruptcy Blog, General Blog
4 Common Mistakes to Avoid When Contemplating a Bankruptcy Filing
It is inevitable that when faced with financial hardship, most individuals will take steps to improve their financial situation. These steps however, generally do not improve the financial situation and more often than not, a bankruptcy still becomes necessary. If your faced with a mountain of debt that doesn’t seem to be going away, bankruptcy is often your best bet to achieving the financial fresh start you are looking for. Below are some tips on mistakes to avoid before bankruptcy which can complicate your ability to file and become debt free.
- When faced with financial disaster borrowers will often look towards their own assets to liquidate before considering bankruptcy. Don’t fall into this trap! Liquidating your retirement, your belongings and savings will only affect your ability to get back on your feet. Most retirement accounts, household belongings, and savings are entirely protectable in bankruptcy and do not have to be liquidated. Do not sacrifice your future to your present financial situation! Before you clean out your 401K to pay off your debt seek the advice of a bankruptcy attorney, and learn the alternative options available to you that don’t require you to be penniless first!
- Avoid taking your name off of assets such as: real estate, bank accounts, and vehicles. Under the Bankruptcy Code transfer of property for less than fair value prior to a bankruptcy are considered fraudulent and can complicate your ability to file. Before you transfer your house to a family member or friend consult with legal counsel to ensure that you are not going to hinder your ability to obtain a fresh start.
- With soaring credit card rates, late charges and fees, borrowers find themselves in a vicious circle of making high minimum payments only to be forced to re-incur debt each month to pay for basic living expenses. If you’re in this vicious circle of payments, stop using your credit and seek professional legal assistance immediately. Get the education you need to break the cycle that will never end well for you and your family.
- Be aware that if you stop paying your creditors and are contemplating a bankruptcy filing please do not pay back your family and friends. In the eyes of the law, grandma is an equal creditor with visa, repayment on debt owed to family and friends is consider preferential and can create serious issues if you need to file bankruptcy. There are numerous other options that will work far better. Until you get specialized legal guidance, treat all your creditors the same and prevent issues arising from paying back grandma. Notify your legal counsel immediately if you have debt to family and friends and they will be able to advise you on the proper course to take in handling that debt.
By keeping these four simple tips in mind, you will avoid common mistakes made by people in financial trouble. There are professionals out there with the answers and education to assist you in getting out of your debt, and back on the road to financial success! Call us today to get answers to all of your Bankruptcy questions. At the Law Offices of Neil Crane, we want to quick get you back on track quickly and into financial recovery. Call us today at 203-230-2233, or complete our online contact form to get a free consultation.
Oct 11, 2020 | Bankruptcy Blog, Blog
Collection Actions and Default Judgments Recommence Post Covid-19 Shut Down
No one can deny that the Covid-19 pandemic has created greater financial hardship for our country than we have seen in a decade. In a matter of one month the unemployment rate hit an all-time high of 14.7%. In the months after March, 2020 thousands of households were forced to chose between feeding their families or paying their mortgage, rent, and credit card debt. Although moratoriums currently exist on most mortgage and rent payments, as of September 9, 2020 the Connecticut Courts have allowed the recommencement of collection lawsuits for credit card companies, personal loans, lines of credit, medical bills, and utilities. Thousands of families will be faced with debt collection post Covid-19.
Currently, the courts are allowing default judgments to be filed and without proper answers being pled by consumers, hundreds of judgments will enter against Connecticut residents without any resistance or even a Court hearing. These judgments will lead to wage garnishments, bank executions, and liens on real estate, only further financially handicapping the Connecticut consumer.
Covid-19 has uprooted our way of life but many of its lasting financial effects can be avoided. Options for collection defense, debt settlement, debt consolidation, and bankruptcy still remain viable options to get out of your debt and now is the time to take action to prevent further financial hardship. These financial tools are available to consumers for the taking and with the right legal assistance and guidance you can achieve financial freedom in a post Covid-19 world. The time is now to explore how to minimize your debt and increase monthly income so that you the consumer can focus on family, health, and your future.
Call our Law Office today if you are facing a large amount of debt that will now be due. We can help save your car, your home and your financial future from debt collection post Covid-19. At the Law Offices of Neil Crane, you’ll never get a voicemail. Call us today at 203-230-2233, or complete our online contact form to get a free consultation.
Aug 9, 2020 | Foreclosure Blog
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.
Jul 30, 2020 | Bankruptcy Blog, Blog
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.
Jul 10, 2020 | Small Business Bankruptcy Blog
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.
Jul 9, 2020 | Small Business Bankruptcy Blog
Federal Bankruptcy Law creates a number of avenues or chapters of Bankruptcy that can be used to solve your business problems. While out of Court negotiations can work, some businesses need the stronger protections that are offered by bankruptcy reorganizations. Understanding what’s correct for your particular business problem requires specialized legal counsel with the experience gathered from decades of legal solutions to business financial problems. One size does not fit all, and your business deserves the best legal counsel available.
In addition to negotiated resolutions and appropriate restarts for troubled businesses, various chapters of bankruptcy can be customized to reorganize your business into profit and recovery.
What Can Different Bankruptcy Chapters Do For My Business?
The basic chapters of bankruptcy law are Chapter 7, Chapter 11 and Chapter 13. Chapter 7 and Chapter 13 can relieve or restructure all forms of personal debt as a tool to restructuring business obligations that have been signed personally. Nearly all business debt comes from personal obligations and signature debt that can be remedied under Chapter 7 or Chapter 13 filings.
Chapter 11 is the major bankruptcy chapter for business reorganizations. It allows for the alteration of all forms of business obligations, including:
- Vendor obligations for trade debt and supplies
- Business loans and credit lines, both secured and unsecured
- Priority debt such as taxes to local, state and federal taxing authorities
- It stops all lawsuits, seizures, levies or collection actions against your company
- It prioritizes critical business debt over less important business debt obligations.
Chapter 11 provides an immediate stop or automatic stay to all collection actions against your LLC, corporation or unincorporated business while the business remains in the control of its owners and operators until a Plan of Reorganization can be provided for the company’s financial future. Chapter 11 is a federal protection that contains numerous powerful legal provisions to assure that solid businesses can overcome temporary problems and emerge as healthy new businesses capable of making dividends to creditors and future profitability for owners, customers and vendors.
Chapter 11 is a powerful tool for business recovery and requires the team-like assistance of an experienced and sophisticated business turnaround lawyer. At the Law Offices of Neil Crane, we’ve successfully reorganized hundreds of Connecticut businesses through preparedness, due diligence and a 35-year history of dedication to small business recoveries.
Contact Our Small Business Bankruptcy Attorneys to Discuss Chapter 11
Call us and ask for references. We’ve got years of experience in successfully helping small businesses. Contact our Connecticut Chapter 11 reorganization attorneys to arrange a free consultation. Please do not hesitate to call us today at 203-230-2233. Because of our commitment to you, our law firm does not use voice mail; you will always speak to a live person when you call.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
