Jun 23, 2020 | Credit Card Debt Relief Blog
So what’s the answer to those of us who ask: How do I really enhance my credit score today if simply paying on time isn’t the best approach?
Reducing Debt Load
The best means to enhancing your credit score is reducing utilization and a healthy debt-to-income ratio. High utilization indicates a poor debt-to-income ratio and no amount of perfectly timed payments will overcome this element to avoid a tanking credit score or an overwhelming burden on your day-to-day financial life.
Why There’s No Better Savior Than Debt Reduction
While it’s important for you to pay your bills on time (since our FICO score is determined in part by our payment history) focusing solely on making payments on time as an exclusive strategy to boost your score isn’t wise.
Debt reduction is the answer. An unhealthy debt-to-income ratio is essential to a solid credit score and financial health. Too much debt makes it impossible to obtain good lending rates or a balanced monthly budget.
However, simply making payments on a $30k credit card balance is a bit easier said than done. In many cases, credit cards come with high interest rates, making it virtually impossible in some instances to pay off the principal in an acceptable amount of time.
Many of us may think about reaching into our 401k savings to pay off the debt. After all, it would give us an immediate clean slate, right?
This is a drastic and often improper alternative made by individuals and families in trouble. There are often better options and none should be overlooked or disregarded without experienced legal advice on better avenues for debt relief.
Why You Should Consider All Avenues For Debt Reduction And High Credit Scores
There are various proven legal options for debt reduction, including debt settlement and debt relief. And, an experienced debt relief attorney will know the best option under your specific circumstances, including Chapter 7 and Chapter 13 bankruptcy.
In our society, bankruptcy is often regarded as a last resort, a decision that will crush your creditworthiness in perpetuity. But this simply isn’t true.
Paradoxically, your FICO scores may in fact go up post-bankruptcy because of the reduction in your utilization. Credit card offers and car loans are actually available within weeks or months of a bankruptcy discharge and getting approved for a mortgage no longer takes years.
Bankruptcy is an important legal decision that is used by many people, but only with the benefit of experienced legal counsel. In certain circumstances, it is the appropriate method to a lasting financial future within increased credit scores and a healthy reduction in your overall household debt burden-all while preserving your savings and retirement portfolios that took decades of work to build and grow.
In today’s economy, everyone needs to take the time to become educated about their particular financial circumstances with the help of an experienced legal professional.
To learn the best options for you and your family, meet with a specialized debt relief attorney.
The Law Offices of Neil Crane, LLC, is a debt relief agency with 30+ years of experience helping individuals, families, and businesses find lasting solutions to their credit card debt and other loan obligations.
Jun 2, 2020 | Foreclosure Blog
As federal banks are mandated to allow for a moratorium of mortgage payments and private banks offer or decline individual moratorium requests based on cause, what is going to happen when these mortgage payments are due? The answer is unclear for government-mandated moratoriums and even less clear for moratorium requests granted by private banks.
All homeowners obviously need to know when they are going to be required to make up payments that they have been unable to make during the COVID-19 pandemic. Many homeowners and foreclosure defense lawyers do not see a clear and consistent directive to how these unpaid monthly obligations are going to be reorganized and incorporated to avoid a new wave of foreclosures. Having witnessed the disaster of the 2008 mortgage meltdown and bank bailouts, housebound homeowners both employed and unemployed wonder if they will be the next victim of a half-baked plan to assist homeowners that is, at best, uncoordinated and likely to lead to continued confusion with borrowers begging banks for merciful repayment terms. Good luck with that.
Not dissimilar to the national pandemic, homeowners do not feel there is clear guidance and are worried about their families’ homes. While there are no guarantees, there are suggestions.
- Do not accept the moratorium unless you absolutely need it. Stay safe and stay out of the morass.
- Any promise from a bank to a homeowner has been proven by the 2008 meltdown to be unenforceable against the bank.
- Banks have proven by the past economic meltdown to be often unconcerned and almost always unreliable. American homeowners have no true client relations with their banks. (Do you know who your banker is?)
- Document everything. Get names, get emails, send letters. Paper your file. In America, if it is not in writing, it does not exist.
- Save, save, save. Any portion of any amount you cannot pay and you can save can be the greatest means to save your home when payments recommence.
- Keep an eye on everything you receive. What does the statement look like? What is the promise from your bank? Finances go down like a stone when you are out of work. When you return, will your recovery meet with your bank’s requirements and prevent it from heading towards foreclosure?
If you are struggling to make mortgage payments, contact the Law Offices of Neil Crane, LLC and find long-lasting solutions. We offer a free initial consultation. 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 bankruptcy attorney.
Jun 1, 2020 | Bankruptcy Blog, Blog
We know that over ten thousand Connecticut families enjoy a better life and financial future as a result of the bankruptcy and debt relief work done by our educated attorneys and staff. The Law Offices of Neil Crane is the largest provider of Chapter 7 Bankruptcy relief in Connecticut.
Connecticut Bankruptcy Attorneys Helping You Stop Creditor Harassment and Get Debt Relief
Chapter 7 bankruptcy is the most affordable and comprehensive debt relief available under the Bankruptcy Code. It completely discharges almost all forms of unsecured debt – allowing people to permanently eliminate unsecured debts, such as:
- Lawsuits, judgments and garnishments
- Credit card debt
- Medical bills
- Old apartment rent payments
- Many types of older tax debt
- Personal unsecured loans (loans not secured by collateral)
- Other debts
If you file for Chapter 7 bankruptcy, you may choose to eliminate certain secured debt as well, such as an automobile loan or a house mortgage.
Chapter 7 Income Guidelines: The first step in examining families for Chapter 7 relief is an analysis of household income from all sources over a trailing six month period. This income, doubled, becomes the determining household annual income for purposes of determining eligibility for “automatic” Chapter 7 relief with its full discharge of unsecured debt and no repayment. Family size is determined by the number of dependents listed on the prior year’s tax return or the true number of people in your household. In Connecticut, the numbers are approximately:
Family of 1 – apx. $60,000+ Family of 2 – apx.$78,000
Family of 3 – apx. $88,000+ Family of 4 – apx.$109,000
All additional individuals – $7,500 per person
For families who are over these median numbers, the new laws under the 2005 Bankruptcy Code require a Means Test.
MEANS TESTING UNDER CHAPTER 7 BANKRUPTCY
This is a somewhat complicated, in-depth analysis of your income and expenses over the past six months. It utilizes formulated amounts for “allowable deductions” for certain expenses and overriding “actual deductions” for certain types of monthly expenses, such as mortgage payments, car loans, support obligations and others.
At the Law Offices of Neil Crane, our highly experienced practitioners know how to use the fullest opportunities under the law to maximize our client’s utilization of both elements of the means testing examination, “household income” and “allowable expenses.” The rules are complex, extensive and critical. The new key to full Chapter 7 debt relief is excellent, dedicated lawyering and full implementation of all aspects of means testing rules and regulations. It takes work, but it’s worth it.
People who do not qualify for Chapter 7 bankruptcy may still qualify for Chapter 13 bankruptcy. At The Law Offices of Neil Crane, LLC, we can help make sure your decision will be the right one for you.
Chapter 7 Is Alive and Well After the New Bankruptcy Laws
After the new bankruptcy laws went into effect in 2005, we are pleased to report that – although there are far greater paperwork demands and stringent means testing rules – The Law Offices of Neil Crane, LLC, is still able to obtain Chapter 7 bankruptcy relief and our same excellent results in the vast majority of cases. In all events, Chapter 13 is available to all clients. The death of bankruptcy relief has, in fact, been exaggerated and over-publicized. With our experienced lawyering, most clients can still obtain the same debt relief that was available under the old law.
In the hands of skillful and experienced Connecticut Chapter 7 bankruptcy attorneys, clients can still get immediate protection and permanent debt relief. Now, more than ever, our experience and dedication is critical to your relief.
Talk With Us About the Benefits of Filing for Bankruptcy
There are many benefits to obtaining the full relief and debt forgiveness still available under Chapter 7 bankruptcy. Please do not hesitate to call us today at 203-230-2233 to discuss these benefits with an experienced attorney. You may also complete our online contact form.
Because your financial relief and peace of mind are our highest priority, we do not use voice mail. Every call placed during normal business hours is answered by a live person. If an attorney cannot speak with you immediately, your call will always be returned by an attorney promptly.
Jun 1, 2020 | Blog, Foreclosure Blog
At the Law Offices of Neil Crane, we are the largest provider of Chapter 13 relief in Connecticut. Many hardworking families facing debt problems and foreclosure are encouraged to count on government programs and help from their banks. While these programs may be well intended, they have been resounding failures. The universal delay and failure of these programs is national news. Don’t rely on false promises to resurrect your finances or save your home. With the help of an experienced lawyer from The Law Offices of Neil Crane, LLC, you can successfully address all your debt and mortgage problems in a full comprehensive Chapter 13 proceeding.
Chapter 13 bankruptcy will stop foreclosure, resolve all other types of family debt, and enable you to gain control of your finances, your future, and your life.
Contact a Connecticut Chapter 13 bankruptcy lawyer at The Law Offices of Neil Crane, LLC, to learn how we can help. From offices in Hamden, Bridgeport, Waterbury, Rocky Hill, and Ridgefield, we provide Chapter 13 bankruptcy services and other debt relief solutions to clients throughout Connecticut. Since 1983, our lawyers have been helping people throughout the state file for bankruptcy, stop creditor harassment, stop foreclosure, and put an end to debt. With our diligence and expertise, we have saved thousands of family homes just like yours.
Stop Foreclosure and Other Debt Problems
For many people facing financial challenges, a properly prepared Chapter 13 bankruptcy provides overall, global solutions. 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.
Benefits of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a court-ordered procedure that enables individuals with any source of income to develop a plan to repay all or part of their debts in order of importance. Also called a “wage-earner’s plan,” Chapter 13 allows a debtor to keep their property, reduce or eliminate unimportant debts, and pay important debts over a three-to-five year period.
The benefits to filing Chapter 13 bankruptcy are plentiful in the hands of a knowledgeable, experienced attorney. At The Law Offices of Neil Crane, LLC, in Hamden, Connecticut, we use our knowledge and experience to provide customized Chapter 13 Plans that:
- Immediately stopping foreclosure: Filing for Chapter 13 bankruptcy provides an immediate automatic stay against all creditor actions, including the immediate stoppage of a foreclosure action or sale.
- Creating a plan for repayment: It creates a plan for the repayment of secured debt, including tax debt and defaulted mortgage obligations over three to five years. Payments are made pursuant to a court-approved Chapter 13 Plan created by our experienced counsel in accordance with Bankruptcy Code provisions and your specific household income.
- Modification of your full obligation for the loan: Chapter 13 bankruptcy allows for deceleration of your mortgage debt so that your obligation to repay the entire loan at one time becomes a repayment plan for the arrearage over time. Regular monthly payments are resumed as of the date of your next scheduled monthly payment providing permanent solutions and saving homes.
- An opportunity to sell your home instead of foreclosure: Chapter 13 bankruptcy may create an opportunity for the homeowner to voluntarily sell their home rather than lose it through a strict foreclosure or court-ordered judicial sale. This, of course, depends on your desire to keep the home, and your ability to pay.
- Repayment of different types of loan obligations: Chapter 13 bankruptcy allows for repayment of other lien obligations such as delinquent taxes, water obligations, sewer obligations, state or federal taxes, and judgment lien obligations through a customized and affordable Chapter 13 repayment plan.
You may be qualified for Chapter 13 bankruptcy regardless of the type of income you earn. Income from any source can be used to obtain the protection of Chapter 13 bankruptcy relief. Most people who qualify have fallen behind in their mortgage due to some unexpected turn of events – people who lost a job but found a new one, or experienced an illness but now are able to work again. Our Connecticut Chapter 13 bankruptcy attorneys can assess your financial situation and determine the right Chapter 13 Plan for you.
Saving Homes Under Chapter 13 Bankruptcy Protection
Our statewide Connecticut, law firm has a successful record of saving thousands of homes under Chapter 13 of the Bankruptcy Code. The filing of a Chapter 13 bankruptcy at any time prior to the final approval of a strict foreclosure law day or a foreclosure by sale will provide an immediate federal court stay on all foreclosure actions while allowing borrowers time for repayment. Chapter 13 bankruptcy often represents the best – if not the only – means to save homeowners in trouble, particularly given the long history of government and banks’ unwillingness to take meaningful steps to assist homeowners in trouble. Don’t trust your home or your family finances to anyone other than the experienced debt relief, mediation and Chapter 13 lawyers at the Law Offices of Neil Crane.
Contact a Connecticut Chapter 13 Debt Reorganization Lawyer
Get answers to your questions about Chapter 13 bankruptcy. We offer a free consultation. 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. Call us now and speak directly with a Chapter 13 attorney. We never use voicemail.
Jun 1, 2020 | Bankruptcy Blog, Blog
We help people across Connecticut who are considering filing for bankruptcy before, during and after divorce proceedings. We regularly serve clients who have questions about debt relief and how it impacts their divorce.
Financial problems are one of the leading causes of divorces in the U.S., and financial issues are typically one of the biggest concerns of both parties in a divorce. Court orders and divorce proceedings do not separate or eliminate obligations to pay creditors for joint debt regardless of what a divorce judge decrees. Co-signed and joint obligations can cause long-term problems and serious consequences to both parties long after the divorce is finalized.
- Are you more concerned about how you will settle or divide debt burdens than assets?
- Are you worried about protecting your assets or business in divorce or bankruptcy?
The timing of a Divorce Decree and the choices for debt relief and asset division are important considerations in nearly all divorce proceedings. Options and alternatives can be maximized by experienced attorneys working together to ensure your financial future.
FILING BEFORE DIVORCE
By filing before or during the divorce process, you can obtain immediate relief with far more options for full Chapter 7 relief at a lower cost for both parties. This can assure that neither party is straddled with large joint debts that become unpayable, subjecting both parties to suits by creditors for years after the divorce is finalized. Filing for bankruptcy before divorce allows for thorough advanced planning and assists in protecting the maximum amount of assets while providing fast and affordable relief, sometimes individually, and sometimes through joint proceedings with shared legal counsel.
FILING DURING DIVORCE
This process is quite common and the Bankruptcy Code makes special provisions to allow divorces to proceed uninterrupted by a pending bankruptcy case. Filing during a pending divorce proceeding has many of the benefits of filing before a divorce. It allows for all financial issues to be carefully examined in full and resolved before the divorce is completed. It also avoids the problems of either spouse defaulting on long-term joint debts and co-signed obligations in a manner that injures the other ex-spouse at any time in the future.
Filing before or during a divorce is usually the optimal choice of our experienced lawyers based on thousands of such cases here in Connecticut.
At the Law Offices of Neil Crane, we can work with you and/or your divorce counsel to properly plan for your financial benefit. Call us at 203-230-2233 for a free consultation.
Debt Relief After A Divorce
Often parties don’t obtain debt relief or bankruptcy counsel until problems arise after their divorce. While this is not the optimal choice, filing after a divorce can still provide essential relief from joint debt obligations that have fallen into default after the divorce, regardless of who was held responsible for such joint obligations in the court-ordered divorce decree. A properly prepared bankruptcy filing can provide permanent relief from creditors on co-signed pre-divorce obligations, including long-term debts and defaulted mortgage payments without disturbing new current obligations and post-divorce recovery.
By strategically planning a divorce proceeding and decree, our experienced bankruptcy counsel can properly draft the Divorce Decree to provide for full Chapter 7 bankruptcy relief from all unsecured debts. With our expert assistance, divorce proceedings can be used to satisfy the new requirements of means testing for higher income filers. Family assets are protected and future income stays protected and “in the family.” This prevents excessive bills from threatening support payments and the household income necessary to properly provide for separated spouses and their children long into the future.
Altering Divorce Decrees Through Bankruptcy Law
Experienced bankruptcy counsel can craft a divorce decree to utilize the special provision of Chapter 7 and Chapter 13 to make finalized divorce decrees affordable. With our specialized knowledge, Chapter 13 can be used to protect all forms of child support and alimony.
An experienced bankruptcy attorney should always be consulted in order to structure a plan that fits your unique marital situation. Protecting assets and assuring your best interests in divorce agreements, requires our specialized and experienced bankruptcy knowledge. The results are powerful and permanent.
To evaluate your Divorce Proceeding or your Divorce Decree, 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, legal protection and a financial relief plan that fits your unique situation in divorce.
May 23, 2020 | Bankruptcy Blog, Blog
As the burdens of increased student loan debt reach historic levels, many graduates are searching for answers that will allow them to stay current each month and preserve their hopes for a solid financial future. While the banks that issue overwhelmingly high interest student loans have enjoyed unreasonable Congressional protection, various options exist for relief from excessive student loan burdens from:
- Government Student Loan Debt –These are direct loans from the U. S. Department of Education.
- Private Student Loan Debt – These loans are issued by banks based on credit and loan applications.
While both private and government student loans are protected from elimination in Chapter 7 bankruptcy proceedings, Chapter 11 and Chapter 13 bankruptcy allows for the restructuring and consolidation of student loan debt into affordable monthly arrangements.
Solving Student Loan Debt Through Other Debt Relief
The first step to resolving student loan debt is the prioritization or elimination of all other forms of debt. Relief from other forms of less important debt allows limited financial resources to be preserved for student loan servicing and the reduction of principal balances.
Continual deferments on student loan obligations is a costly and temporary mistake made by thousands of Connecticut graduates. It merely avoids true student loan debt solutions.
Many people feel that their student loans are too overwhelming to approach or impossible to resolve, placing themselves in a type of student loan debt paralysis that requires the assistance of financial and legal professionals.
Consolidation Of Student Loans And Prioritization
Establishing a full spread sheet with the amounts and payment terms of your student loans is the initial step to evaluating an appropriate plan of attack. This allows graduates to choose from a variety of solutions; including:
- Consolidation
- Chapter 7 Bankruptcy Relief
- Chapter 13 Bankruptcy Relief
- Income Based Repayment Plans
Student Loan Debt And Chapter 7 Bankruptcy Hardship
While Chapter 7 bankruptcy will allow for relief from all forms of unsecured debt, private and federal student loans are deemed non-dischargeable without proof of hardship. Unfortunately, the standard for Chapter 7 student loan hardship relief is nearly impossible to satisfy. Chapter 7 relief for hardship is not a worthwhile avenue, despite recent extreme hardship cases.
Chapter 7 relief for all other forms of debt is helpful for student loan repayment but Chapter 7 does not discharge student loan debt.
However, Chapter 7 debt relief eliminates unimportant debt and allows for the proper allocation of income resources to more important student loan obligations. On its own, Chapter 7 should not be viewed as an avenue for the discharge of private or government student loan debt.
Chapter 7 Debt Discharge For Student Loan Relief
While Chapter 7 bankruptcy will not allow for the discharge of private or governmental student loans, it does provide general debt relief that can be used in combination with other avenues for overall student loan debt relief.
Since all forms of student loan debt relief won’t make room for payments needed for other debt obligations, relief from these obligations can be critical to your success under any and all student loan debt repayment programs; including:
- Student Loan Consolidation
- Income Based Repayment
- Chapter 13 Bankruptcy Plans
Income Based Repayment Plans
The recent strengthening of Income Based Repayment or IBR has made this program a viable option for dealing with overwhelming student loan debt. While the Income Based Repayment program is a step in the right direction, there are a number of important limitations that may reduce the relief granted; namely:
- Loan dates, rates and qualifications
- Gross income parameters
- Seasonal income adjustments
Always understand the payments, terms, and the rates. Reduced Income Based Repayment payments can create larger unpaid balances. It’s math, it’s important, and help is available.
At the Law Offices of Neil Crane, we’ve solved financial problems for thousands of Connecticut residents since 1983. To learn more about approaching and resolving your student loan debt problems, call us at 203-230-2233 for a free consultation with one of our knowledgeable attorneys.
