May 23, 2020 | Blog, General Blog
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
May 23, 2020 | Blog, Credit Card Debt Relief Blog
Consumers can sue creditors who have violated consumer protection and fair debt collection laws. Unlike other attorneys, we are not afraid to file suit against creditors who violate your legal rights.
Every case is unique, but if you are being harassed or abused by debt collectors, we always offer a free consultation to properly evaluate your case and help you make informed decisions about all of your best options.
With our help, you may stand to gain the following:
- Financial compensation in statutory damages
- An immediate halt to all contact with all creditors/collectors or any harassing parties
- A full examination of the validity and true ownership of the debt, and the actual correct amount of any obligation
- Additional compensation for any actual damages you incur because of creditor/collector harassment
- Creditor/collector will be ordered to pay your attorney fees if you obtain a favorable ruling.
What Debt Collectors Can I Sue?
Under the right circumstances, we can sue any debt collector/creditor that violates the law to harass or abuse you in the following ways:
- Verbal harassment and threats
- Deceptive tactics and statements
- Contacting your family, neighbors, friends or employers and discussing your debt or anything pertaining to collections directly
- Presenting you with false information
- Calling you before 8 a.m. or after 9 p.m.
- Seeking to communicate with you despite knowing that you are represented in the matter by an attorney
We handle legal matters with banks, mortgage lenders, auto loan financiers, medical providers, insurance companies, credit card companies, debt collection agencies and others. Our knowledgeable and skilled lawyers can sue harassing debt collectors in New Haven, throughout Connecticut and anywhere else in the country.
We represent Connecticut consumers, and we will uphold your rights against creditors and debt collectors of all types. Regardless of the amount of debt you carry, we can help you.
We can help you save your home, stop foreclosure, stop creditor harassment and obtain debt relief for a brighter future.
May 23, 2020 | Blog, Credit Card Debt Relief Blog
For many of us, maintaining a good credit score is a top priority in life. We may overlook getting that oil change or forget the annual physical at the doctor’s office, but we do everything necessary to pay our credit card bills on time, believing that on-time payments will maintain a high credit score.
In the past, this may have been true. Today-it is not the case, perfect payments don’t mean perfect credit scores. Here’s why.
How are Credit Scores calculated?
Your credit score, or FICO score, is essentially a calculation used by lenders to determine your eligibility for a loan, how much you can borrow and the corresponding interest rate.
Previously, your credit score was a mysterious, hidden computation that was primarily based on your payment history. Today, the breakdown of your score is a more clear-cut computation based on numerous important factors.
The five different factors used to calculate a score range of 300-850 need to be carefully examined and understood:
- Payment history. This portion focuses on whether or not payments were made on time. It accounts for 35 percent of the score.
- Amounts owed.This portion examines outstanding credit accounts and how much is owed on each obligation. This makes up 30 percent of the score. It’s called utilization and it’s now essential to maintaining a high credit score.
- Length of credit history.This portion reviews how long the applicant has used credit. Generally, a longer credit history leads to a higher FICO score. This makes up 15 percent of the score.
- Credit mix.This portion looks at the different types of credit given (e.g. retail store accounts, auto loans, mortgage loans). This makes up 10 percent of the score.
- New credit.This portion reviews how many accounts were recently opened, triggering a potential credit risk if a borrower opens “too many” lines of credit. This makes up 10 percent of the score.
All of these are important, but number 2 above-also referred to as credit utilization-is the newest and most important factor in your credit score and your daily life. Here’s why.
Perfect Payers Don’t Have Perfect Scores
In the past, if you had a steady income and always paid your bills on time, you were rewarded with a higher credit score-even if you had an unhealthy debt burden.
Not so today. Outstanding debt is now a huge part in a FICO calculation-and that is why many of today’s so-called “perfect payers” are ending up with diminishing FICO scores. These utilization rates are the central component to rewarding perfect payers with perfect scores.
May 22, 2020 | Bankruptcy Blog, Blog
Chapter 20 Bankruptcy
DEBT RELIEF UNDER CHAPTER 20 BANKRUPTCY PROCEEDINGS
What is Chapter 20 Bankruptcy?
The filing of a Chapter 7 bankruptcy petition, followed by the often immediate or later filing of a Chapter 13 bankruptcy petition is known as a Chapter 20 bankruptcy. The benefits of Chapter 20 proceedings have been a godsend for many troubled borrowers seeking maximum relief from overwhelming bills through a Discharge under Chapter 7 with a subsequent Chapter 13 repayment for non-dischargeable tax debts.
The discharge, or extinguishment, of numerous types of unsecured general claims of low priority to a burdened debtor under Chapter 7 can clear the way to allow for proper payment of more important priority, secured and non-dischargeable claims – items like recent taxes, mortgage payments and other critical debts, all of which are subject to favorable treatment under Chapter 13.
After eliminating low priority debts and obligations through a Chapter 7 bankruptcy discharge, those debts not eliminated or discharged can be paid from all remaining income with the importance they truly deserve. These payments can be made under the favorable repayment terms and powerful protections of a subsequent Chapter 13 Plan of Reorganization.
Altering New Debt After a Prior Chapter 7: The Four-Year Rule
Chapter 20 is available even after a prior Chapter 7 Discharge within four years.
A Chapter 7 Discharge prevents a new or subsequent Chapter 7 within 8 years of the prior Chapter 7 filing date. This is called a Chapter 7 bar, and means that 8 years must pass from a prior Chapter 7 filing to file again under Chapter 7. Fortunately, there is a limited four-year bar between Chapter 7 and a subsequent Chapter 13 that still allows for the Discharge of new, post-petition debt. While this is sometimes a unique situation, as successful Chapter 7 clients learn the dangers of new debt, any Connecticut family may be subject to surprise new debt, even with solid, newly-learned good borrowing habits. This can come in the form of medical bills, job loss or other disasters wherein new debt becomes impossible to pay.
The four-year rule means that new debt after a prior Chapter 7 Discharge can be solved in Chapter 13 four years before the borrower is eligible for a second Chapter 7 filing. The problems of the Covid-19 pandemic have made this option a savior for many recent successful Chapter 7 clients who now encounter new unforeseen financial problems.
Chapter 13 is the most powerful and most under-utilized Chapter of Bankruptcy. In fact, very few bankruptcy specialists focus their practice on the somewhat complicated and specialized provision and procedures specific to Chapter 13 of the United States Bankruptcy Code. This void in qualified bankruptcy professionals is unfortunate, since Chapter 13 allows for the greatest debtor protections and options available under any provision of the law. Our office is the largest provider of Chapter 13 and Chapter 20 solutions in Connecticut.
Chapter 13 allows the borrower:
- Comprehensive debt relief with a customized repayment plan without any loss of control or loss of assets.
- All the provisions and protections found under Chapter 7.
- The full protections and avoidance powers of the Bankruptcy Code; i.e. lien avoidance, preferential payment, avoidance and litigation powers.
- The ability to alter all forms of obligations, all types of tax claims, priority claims, secured claims, otherwise non-dischargeable claims, student loan debt, and Divorce Decree property settlements.
- The ability to obtain court orders on “confirmable” plans with or without the voting rights or consent of creditors as required under Chapter 11 proceedings.
- Full jurisdiction throughout the United States in a swift and favorable forum for the litigation of any and all creditor claims adjudicated “at home” in the debtor’s place of residence.
Chapter 20 for Tax Elimination and Favorable Repayment
Although few practitioners are experienced or proficient under the provisions of Chapter 13, properly utilized, Chapter 13 or Chapter 20 is the strongest forum available for complete tax elimination or restructuring. In general, older state and federal income taxes can be eliminated and more recent income taxes can be restructured in accordance with affordability and without creditor or tax authority consent.
Although somewhat unknown and rarely discussed, Chapter 20 does, in the hands of experienced counsel, provide the best possible relief available under state or federal law. Its utilization to eliminate dischargeable, low priority obligations through Chapter 7 and the immediately subsequent filing of a Chapter 13 proceeding to eliminate or restructure all forms of state, local and federal taxes makes it a solution for consumers with overwhelming tax debt.
As the leading providers of Chapter 20 relief throughout Connecticut, we are always available to discuss the applicability of the provisions of Chapter 20 to your clients’ specific circumstances. We have routinely encountered and swiftly resolved tax problems in the most complicated and long-term circumstances imaginable.
At the Law Offices of Neil Crane, we have been providing Chapter 7, 11, 13 and 20 tax solutions since 1983. Call us Today to learn about your options when it comes to bankruptcy and debt relief at 203-230-2233.
May 22, 2020 | Frequently Asked Questions, Frequently Asked Questions About Bankruptcy, Frequently Asked Questions About Chapter 13, General Blog
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
May 22, 2020 | Bankruptcy Blog
Chapter 11 bankruptcy provides court-ordered debt relief and financial restructuring for businesses and individuals under the Bankruptcy Code. Chapter 11 bankruptcy has saved many Connecticut businesses from closing their doors under the strain of seemingly insurmountable debt. It is an excellent solution for basically sound companies facing serious financial crisis.
Chapter 11 allows an owner to maintain operation of a business and reorganize through a court protection process when other methods of negotiation and out-of-court resolutions have failed. Through proper Chapter 11 relief, a business is enabled to continue normal operations, even in the event of lawsuits, levies, or attachments from all types of creditors.
Chapter 11 businesses and their owners are fully allowed to operate their businesses in the normal course as they did prior to the filing, but they enjoy full protection from collections or suits on pre-petition back bills. Regular bills, purchases and all customary business decisions are made regularly by the business owners, operators and employees. The operations and the operators of the business continue with all day-to-day transactions, incurring charges and paying current bills without Court involvement.
THE CHAPTER 11 BANKRUPTCY PROCESS
There are three basic stages to a successful Chapter 11 Reorganization:
Analysis and Filing: During this initial phase, all aspects of the business operations, including income and expenses, assets and liabilities are carefully examined to create a game plan for the entire case and the desired final results. Full preparation is followed by the filing of a complete Chapter 11 petition, supporting documentation and the initial outline of a future plan for the reorganized business. It provides a single forum for all matters related to the business.
Filing Chapter 11 provides an automatic stay or stoppage on collection actions while providing one local court for the disposition of all claims by or against the Chapter 11 company. It also provides a convenient forum for our Chapter 11 attorneys to dispute and resolve claims against company assets and promptly collect from parties owing money to the filing company. In the hands of an educated and experienced Chapter 11 counsel, a filing under Chapter 11 can save your life’s work.
Operating Period: Immediately upon filing, the company is relieved of all payments on past debt in full, and operates in the ordinary course without interference from past debt or debt service.
Chapter 11 provides the company a hiatus on all payments through a court-ordered period where no payments need to be made on debt incurred prior to filing. This provides the company or filing individual the necessary relief and time to reorganize. During this period, the company is free to operate its normal business without interference from creditors or the Court.
Plan of Reorganization Approval: During the interim period of operating the business without payment on prior debt, legal counsel and ownership determine the proper treatment of past debt obligations that were frozen on the date of filing. Debts are categorized in order of importance, prioritized for separate or group treatment under a Chapter 11 Plan of Reorganization. The Plan proposes treatment for each Class of creditors in accordance with various important factors, Classes are then required to accept the treatment or dividend on their pre-petition debt; or in some cases, vote for acceptance of the Plan of Reorganization. An approved or confirmed Chapter 11 Plan controls all creditors in the future by Court approval or a vote, and the Plan becomes binding through an Order of Confirmation.
All Chapter 11s have important ramifications, often to a lot of parties. They require expert preparation and experienced Chapter 11 reorganization counsel to assure a successfully reorganized and profitable future business.
You may want to consider Chapter 11 bankruptcy for your business debt if you face pressing financial concerns that threaten your company or personal financial future; including:
- Overwhelming debt payments
- Liability related to a lawsuit
- Tax problems with the IRS, state or local taxing authorities
- Bank or Lender lawsuits
- Landlord-tenant conflicts
- Inability to pay certain debt obligations
- High interest consumer debt obligations
- Interference with the financial health of your household
- Other business debt problems
Business Debt Problems Lead to Personal Debt Problems
All small business problems have a direct impact on the personal finances of their owners. At the Law Offices of Neil Crane, we know that business financial problems require a coordinated reorganization of the business and its owners. With proven methods and experience in all aspects of personal and business Chapter 11 proceedings, we produce a comprehensive solution to all your business and personal needs. We have over three decades of experience with out-of-court workouts, Chapter 7 Bankruptcy, Chapter 13 and Chapter 11 Bankruptcy Reorganizations.
Learn more about our small business bankruptcy services and how our Connecticut Chapter 11 bankruptcy attorneys can help you obtain the debt relief necessary to save yourself and your small business from insolvency.
Consult With Our Connecticut Small Business Chapter 11 Debt Relief Attorneys
We offer a free consultation regarding Chapter 11 bankruptcy. 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 business and personal debt relief attorney at the Law Offices of Neil Crane.
