Mar 10, 2021 | General Blog
President Biden’s new American Rescue Plan introduces a wide variety of Covid-19 relief expansions, including an extended child tax credit. This bill makes interesting adjustments to the child tax credit program that is currently implemented in an effort to, according to President Biden, “give families who are struggling the most the help and the breathing room they need to get through this moment.”
This proposed credit grants an annual $3,000 per child ages six to 17 or an annual $3,600 per child under six years old. If this bill is passed, families could start receiving monthly payments of $250 from the IRS for school-aged children by this July. Additionally, families could receive about half of their total child tax credit this year and then claim the remaining amount on their 2021 tax returns.
The proposed credit expansion is income-based:
- Eligible families include individuals with a yearly income of $75,000 or less and joint filers with a yearly income of $150,000 or less.
- The credit is then reduced by $50 for every $1,000 of additional adjusted gross income.
- The credit is capped at individuals with a yearly income of $95,000 or more and joint filers with a yearly income of $170,000 or more.
- However, taxpayers who are ineligible but still make less than $200,000 individually or a joint $400,000 can still claim the original $2,000 per child credit.
Another change that this bill proposes to the program is that the credit becomes fully refundable. Under the current policy, taxpayers could only get up to a $1,400 refund if their credits exceeded the taxes they owed. If this plan is approved by the House this week, taxpayers could get the full $3,000 or $3,600 refunded. Additionally, parents do not need to be employed to be granted this credit and the proposed policy expands to US territories. Hopefully, through the passage of this bill, families who have been facing pandemic-related financial hardships could get some relief.
Mar 10, 2021 | General Blog
On Saturday, March 6th, 2021, the US Senate approved President Biden’s American Rescue Plan, a $1.9 trillion Covid-19 relief package. This bill will be going through the House of Representatives this week in efforts to get President Biden’s signature before key unemployment programs expire on Sunday, March 14th.
This bill includes:
- A $300 weekly boost to unemployment benefits through September 6, 2021
- The distribution of $1,400 stimulus checks to individuals with an $80,000 or less yearly income or joint tax filers with a $160,000 or less yearly income beginning this month
- The allocation of funds towards Covid-19 testing and vaccine distribution
- The direction of funds to state, local, and tribal governments and schools
- The expansion of tax credits for children to $3,000 annually per child ages six to 17 and $3,600 per child under six
- The expansion of tax credits for low-income employees
- The expansion of rental payment and nutrition expense assistance
- The extension of health insurance subsidies
Unsurprisingly, this bill has faced a whirlwind of partisan controversy within the Senate, House, and media despite a 68% American public approval rating, a total of about 527,000 American Covid-19 deaths, and the highest unemployment rate since the Great Depression. The American Rescue Plan is being swiftly pushed through Congress so this highly-anticipated, final passage decision is expected by the end of the week.
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.
