First you need to understand the types of Debt to understand what different types of Debt relief is available.
Unsecured Debt vs. Secured Debt
A secured loan, usually for a vehicle or property (e.g. mortgage), is a loan in which collateral (the car or the house) is pledged to secure the loan. If a borrower defaults or somehow violates a contractual obligation under these secured loans, the lender may repossess the asset, unless the borrower has bankruptcy protection. By contrast, an unsecured loan is not connected to any asset and can be eliminated through a properly prepared and filed Chapter 7 bankruptcy with no loss of any assets.
If you continue to struggle and find yourself falling behind on minimum payments on high-interest unsecured debt like credit cards, you need to seek the advice of a professional who knows all the avenues and legal options that provide unsecured debt relief and financial futures for individuals, families and small businesses throughout Connecticut.
Eliminating or reducing unsecured debt makes paying on more important secured debt affordable – it saves homes and cars from loss to foreclosure or repossession.
Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings are different types of debt relief which provides an automatic stay to halt liens, levies, garnishments, lawsuits or collection actions. The bankruptcy filing also relieves you or your business of various types of unsecured debt while re-working secured debt and all types of tax debt.
When your bills become overwhelming, proper bankruptcy advice from an experienced and specialized attorney can relieve you and your business from all types of unsecured and secured debt and credit card dependence. Any high interest debt can destroy your debt-to-income ratio and threaten essential possessions like cars and homes.
Asset Protection and Debt Relief Through Bankruptcy
If you’re facing overwhelming debt or other unpaid obligations, or even lawsuits, our bankruptcy attorneys can protect your assets from repossession, garnishments, liens or all other forms of collection actions. Through prompt and experienced use of bankruptcy laws, we can provide you with full unsecured and secured debt relief in order to protect your most important assets. All our bankruptcy cases protect your assets.
To learn more, read our article on How to File for Bankruptcy.
Can I Avoid Bankruptcy?
No one ever sets out to file bankruptcy as a first option. Many people try to work harder or fall prey to solicitations from outside companies for miracle cures, wasted pensions, consolidation scams and high interest consolidation loans. At The Law Offices of Neil Crane, we have talked with thousands of people who wished to avoid bankruptcy. With the help of our Hamden, Connecticut, law firm, we are able to create all types of debt relief solutions for our clients. We help them solve their financial problems and find financial health again.
Avoiding bankruptcy is often not easy but with sound financial decisions, thousands of clients take the necessary legal steps, create a budget and stick with it. As lawyers who care about our clients’ well-being, we often recommend these solid practices:
- Budget: Learn your monthly break-even, where income meets expenses. Don’t borrow money on credit cards unless you can pay the balance in full before the end of the month. Carrying a credit card balance is the number one cause of financial distress, including lost cars and home foreclosures.
- Don’t become enamored with your FICO score: Your credit score is not as important to financial security as your bank account balance.
- Avoid second mortgages: To avoid bankruptcy, your home should never be used as a bank.Don’t borrow against our house.
- Reduce debt: The best way to reduce debt is to make payments on debt principal. Just servicing debt won’t work.
- Seek help sooner rather than later: If you can’t solve the problem on your own or by just working harder, seek our advice. The success rate for people who seek financial help early on is greater than for those who wait. It is never too early to talk with a lawyer about debt help. We recommend that you contact us at 203-230-2233 before your situation is critical.
Unfortunately, many people who visit our Web site are already facing difficult times. Many have been scammed by credit consolidation companies. Many more do not want to consider bankruptcy because of fear. It is scary, but your financial future is worth seeking the advice of experienced professionals right here in Connecticut.
When Bankruptcy is Unavoidable
Sometimes people face bankruptcy for reasons completely beyond their control. They experience a job loss, extensive medical bills due to an illness, or a divorce that forced the resources that previously supported only one household to now support two.
In these situations, Chapter 7 and Chapter 13 bankruptcy may be a good option for restoring financial health. At The Law Offices of Neil Crane, we guide you through the process so that you are well prepared to achieve the best possible results — moving forward and building a successful life after bankruptcy. Bankruptcy works for many Connecticut families.
Schedule an Appointment With Us
Our lawyers, paralegals, and support staff are committed to helping you avoid bankruptcy. For this reason, we work around your schedule. We offer flexible office hours on evenings and weekends by appointment. We can also meet with you at other convenient locations besides our Hamden, Connecticut, law office.
We offer a free consultation regarding debt reduction. 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. Understand when you should talk to a lawyer in our article.