There is Life After Bankruptcy
Many people are fearful about filing for bankruptcy because they worry that their financial future will be permanently damaged after bankruptcy. They worry that they may never again be able to get a credit card or purchase a home. Fortunately, that is not the case. Each year bankruptcy is a new beginning for thousands of Connecticut families.
At The Law Offices of Neil Crane, LLC, in Hamden, Connecticut, we see our clients regain their financial independence. When you hire our law firm, you hire all our experience to work directly with you. Our attorneys answer your questions and give practical advice with one goal in mind: Restoring you to financial health in your life after bankruptcy. For many of our clients, filing bankruptcy is the beginning of a new financial life and a whole new attitude about debt. Bankruptcy is a solution and also a learning process – It is often the time when our clients truly learn the dangers of borrowing money and all the pressures to take on new debt, and they don’t get caught again.
The joy of our job is your financial recovery.
In our conversations, we talk honestly about the true building blocks to permanent financial health:
- Your debt-to-income ratio: Debt-to-income ratio considers what level of income you need to sustain for you to remain current on your debts.
- How to stay debt-free: We will guide you through the process of making solid financial decisions.
- How to avoid credit card debt for long-term financial health: In your life after bankruptcy, you will immediately be faced with offers for pre-approved credit cards. Credit cards are okay, but never carry a monthly balance. Use it, but pay it in full.
- Avoiding second mortgages: We believe that any second mortgages are bad mortgages. Houses are designed to provide your family with stability. Never use your house as a bank.
We understand that many people originally filed for Chapter 7 or Chapter 13 bankruptcy for reasons that were not their fault and beyond their control. They faced rising costs with no rise in income, unexpected medical bills, experienced a divorce, or lost a job. While these things were beyond your control, your financial future can be in your control again. With your lawyer’s help, you can truly have a successful life after bankruptcy.
Rebuilding Your Credit After Bankruptcy
When you struggle with debt, or just have too much debt, you watch your credit take a tumble. Many people think that the only way to really rebuild your credit after struggling with debt is to claw their way out; but they can’t, no matter how hard they try – It’s a numbers game, and they’ve lost. There are legal answers. Taking proper steps to solve problems with your creditors will ease your long-term credit concerns and rebuild your credit score. Credit scores are enhanced by debt reduction and can be easily rebuilt with the proper professional help.
The Myth of the Credit Score
Do not let concerns over your credit score prevent you from taking real action when it comes to your debt. Debt reduction and an improved debt-to-income ratio are the beginning of a fresh credit report and a high credit score.
Taking real action to get the debt relief you need will end up increasing your credit score on a solid and permanent basis.
Your Debt to Income Ratio
Debt to income ratio is the percentage of your gross monthly income that goes toward paying old debts. When it comes to your financial health, maintaining a good debt to income ratio is critical. Your family should have enough income to pay the debts it incurs every month — while paying all bills due in full and hopefully saving for the future. Too much borrowing on credit cards ruins your debt-to-income ratio, your credit score, and your family’s financial future.
There are many financial habits that lead to a good debt to income ratio:
- Paying off the balance due each month
- Using debit cards instead of credit cards
- Limiting the amount of credit you have available
- Not taking out second mortgages
- Don’t take consolidation loans or programs
- Never take pay day loans
When to Seek Professional Assistance for your Finances
All our clients share a common fear and reluctance to face the challenges of their financial problems and are hesitant to seek outside help. We understand this in all our clients, we respect those feelings and do our best to make our services comforting and affordable. Solid, honest discussions about the financial challenges of living in Connecticut are the cornerstone to a solid and successful working relationship with an educated client. We often feel that we have the hardest working clients in Connecticut. All of them share common signals that they may need to seek our help:
- They can’t seem to make ends meet
- They pay only the monthly minimum balance.
- They are always juggling to meet billing deadlines.
- They can’t fix it on their own, no matter how hard they work.
- They’ve become credit card dependent. Life’s essentials, like gas and groceries, and even credit card payments, go on credit cards.
- They are often in a use it, pay it, use it, pay it relationship with their credit card lenders.
- They are out of options and facing daily feelings of financial despair.
- They don’t know how to fix it on their own.
- They don’t sleep well.