The Law Offices of Ronald I. Chorches

Wethersfield Office: 860-952-3878

Waterbury Office: 203-754-8000

Winsted Office: 860-563-3955

Hamden Office: 203-494-1700

Hartford Bankruptcy Law Blog

Managing money includes dealing with debts

Most people nationwide, including those in Hartford, Connecticut, deal with debts of some kind from time to time. Correspondingly, most people can gain value from good debt management practices. That includes controlling credit card debt.

One tip is to keep careful track of your income and your expenses. Credit cards should not be used casually, as though they are an infinite source of spending money. They are not. When credit cards are used casually, without tracking income and expenses, balances due increase and with them, the interest that you have to pay.

How at risk of foreclosure are Connecticut homeowners?

As warm weather has swept across the nation this summer, good news has begun to shine through when it comes to the rate of foreclosures in some of states that were hit hardest during the financial collapse in 2008 and 2009. Among the states that were most impacted by the recent foreclosure crisis, Connecticut was the fifth most affected and, despite some improvements, continues to be be.

During June of 2017, ATTOM Data Solutions reported that the country's foreclosure rate improved significantly for the first time since November of 2015. June of 2017 marked a decrease in foreclosures by as much as 22 percent, for the first time in many years. Currently in the United States, there are just under 75,000 total properties in foreclosure.

Financial advice for those facing debt

Debt is stressful, it can impact all areas of your life and it often feels overwhelming. If you've been dealing with it, you know that it's important not only to know what to do about the debt that you have, but also to understand how you can prevent future debt.

Below are a few different pieces of advice that may help.

Things that tend to happen before corporate bankruptcy

As the owner of a company, you're hoping to put bankruptcy off and stay afloat. Before deciding that it's actually in your best interests to declare bankruptcy, there are a few things you may try, options other owners just like yourself often turn to as they search for answers.

First of all, you may grow cautious. When you started your company, you knew that risks were needed and you embraced them. Now you'll be ultra careful as you try to limit mistakes and losses.

Foreclosure and emotional and mental health

People often think of foreclosure in strictly financial terms. What does it mean for your credit score? How will it impact your ability to get a loan in the future?

These are important questions, but some experts point out that it's more than money. There is also an emotional side. There's a mental side. They claim that losing a home can be traumatic in the same way as losing a loved one or getting divorced.

Can you take appliances during foreclosure?

Your home is being foreclosed by the bank, and you're moving out. You know that you're allowed to take your personal items, like clothes, desks, artwork and everything else that you purchased. These furnishing can go with you since you brought them to the home initially.

But what about appliances? Are they yours, or do they stay with the house?

Can you discharge student loan debt in bankruptcy?

Some people assume incorrectly that you can discharge any debt you have in bankruptcy. Others strongly believe that student loan debt is exempt and can never be discharged, even with a successful bankruptcy filing for other types of debt. Which is true?

The reality is somewhere in the middle. One study did find that most people don't even try, with just 0.1 percent of those who file and who also have student loans attempting to have them discharged. However, of those, a full 40 percent saw at least a portion of the debt erased.

Even good debt can be bad

People often consider two main types of debt, known as good and bad debt. One general rule of thumb is that debt is good if it's the type that nets you a tax deduction.

For example, running up $10,000 of debt on a credit card is bad debt. It's something you simply owe with no benefits. Buying a home for $500,000 is good debt. It's far, far more debt overall, but you can take a deduction on your taxes. It also eliminates the need for rent payments and you're slowly paying off a home that still has an inherent value. In some cases, the home will sell for more than you paid for it.

Tips to reduce the stress of debt

Debt is one of the biggest things that causes stress, meaning those who know they have debt hanging over their heads may always have it in the backs of their minds. This isn't a healthy way to live, but there are some things that you can do to reduce that stress.

First off, some experts suggest spending your money not on items, but on experiences. They note that most items are exciting right away and then boring a short time later. Experiences can create memories that last for life.

Tips for quickly selling your home prior to foreclosure

You're not in foreclosure proceedings yet, but you know they're coming. You've missed payments and you know you're not going to be able to get caught up.

Other homeowners in your position will sometimes try to sell their homes quickly. This can get rid of the debt and help you avoid having a foreclosure on your record. It also means the bank won't simply reclaim your house, so you may get your money back out of it -- depending on how much you paid and what the current market looks like. Below are some tips to help you sell when you want to do it quickly.

The Law Offices of Ronald I. Chorches

Wethersfield Office
449 Silas Deane Hwy
Wethersfield, CT 06109

Phone: 860-952-3878
Fax: 860-513-1577
Wethersfield Law Office Map

Waterbury Office
One Exchange Place
21 West Main Street
4th Floor
Waterbury, CT 06702

Phone: 203-754-8000
Fax: 203-841-0304
Map & Directions

Winsted Office
487 North Main Street
Winsted, CT 06098

Phone: 860-563-3955
Map & Directions

Hamden Office
2558 Whitney Ave
Hamden, CT 06518

Phone: 203-494-1700
Map & Directions

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