Bankruptcy Lawyer, East Hartford FAQs
As East Hartford bankruptcy lawyers, a large number of our clients are juggling bills, utilities, groceries and gasoline with maintaining a roof over their heads. As no one really teaches us how to handle overwhelming debt, we often get many of the same questions about what options are available to them, and the potential consequences thereof. Here are just a few common questions that our East Hartford clients in financial trouble ask:
- What is foreclosure?
Foreclosure is the State Court legal process whereby a lender, taxing authority or secured creditor seeks to take back title to your house. It starts with service by a state marshal of a foreclosure writ, which does not need to be served to you in person, but can simply be left at your property. The rest of the process happens in the county court house with notices sent by mail only. The court system requires that you file an appearance to assure notice to you of all actions by all parties to the foreclosure. In Connecticut, foreclosure takes between 3-6 months and can be further delayed or stopped by informed, strategic legal action. Bear in mind, foreclosure is an important legal process that is intended by the lender to take your home, but it is just the beginning of a solvable and somewhat lengthy process. Don’t panic – Instead, seek the experience of East Hartford’s bankruptcy lawyers at the Law Offices of Neil Crane.
- If I am in foreclosure, will I lose my home?
Absolutely not. Thousands of Connecticut and East Hartford homeowners in foreclosure save their homes every year, but it is imperative to seek help from the best possible legal counsel with knowledge and experience gained by saving countless East Hartford homes every year. Don’t rely on a bank, government agency, or the promises of an out-of-state website to save your home from foreclosure.
- Should I pay my credit cards if I’m struggling with my mortgage?
Many borrowers continue to pay high interest unsecured credit card debt while they’re in the process of losing their homes. This is a major mistake, but it occurs on a regular basis for a few reasons:
- Borrowers truly do want to pay and have been trained to make timely monthly payments even if they can’t afford to make the payments, ands are actually in jeopardy of losing their homes.
- People want to pay someone, or as many people as possible so they don’t have problems and battles with everyone. They deplete their available money in an effort to pay as many creditors as possible, even when it doesn’t solve their real problem and actually can make it worse.
- People are very concerned about their credit score and will go to all lengths to preserve their score, even in part, by making payments on as many bills as possible. Of course, this doesn’t help because credit score has nothing to do with a successful mortgage working or modification and credit scores will be impaired by the mortgage default.
- People pay credit card companies to avoid the interest rate increases and brutal late charges imposed by threatening credit card collectors. In most cases this doesn’t avoid the imposition of these fees and costs anyhow, as credit card companies can legally raise your rates for any reason they deem appropriate.
- People pay credit card companies and waste precious financial resources that could better go to their mortgage/house to avoid relentless phone calls from credit card companies and collectors. Collectors for unsecured debt can call many times per hour on a daily basis and people often give in and deplete their monthly budget to avoid the endless and often harassing phone calls at home and at work. Giving in to these threats and harassment is a common mistake, even though you have a right to not be contacted by telephone.
Credit card or unsecured debt is the last thing you should pay. It does nothing to feed, clothe or house you or your family. Most credit card payments accomplish nothing, since all the payment goes strictly to interest on past purchases and provides nothing for a family’s present needs today.
Saving your house is far more important than paying credit card debt and in fact, credit card payments are among the leading causes of home loss in America. Paying high interest unsecured debt robs families of the resources necessary to save their homes from foreclosure. Which would you rather have, your house or a maxed-out credit card? If you are facing a choice, pay your mortgage, not your credit cards. You can handle unsecured debt later. They can’t take anything from you, and they’re always negotiable for a small dividend on the dollar.
- What are my legal options if I’m in foreclosure?
Connecticut has various laws to protect homeowners from foreclosure. They include the right to decelerate your loan by making back payments, underemployed or unemployed protection, foreclosure protection and mediation. Mandatory mediation in court has become an excellent option available to all Connecticut residents who take proper advantage of this state law protection for homeowners. There are also various legal defenses to combat lending and foreclosure abuses. Most importantly, there is an entire set of federal laws that are available to rescue East Hartford residents from losing their home through foreclosure.
- Will my employer know about my Bankruptcy?
Not necessarily. While bankruptcy is a matter of public record, your employer will not be notified about your bankruptcy if you file a Chapter 7. Unless your employer is also a creditor of yours, chances are excellent that you will cruise through the process without your employer ever having an inkling. If you file a Chapter 13, on the other hand, your Plan payments are generally derived from Court-ordered wage garnishment, in which event, your employer, or at least your Human Resources Department, will know.
The Law Offices of Neil Crane has a main office in Hamden, Connecticut, as well as 5 other locations across Connecticut. Call us today!