The Law Offices of Ronald I. Chorches

Wethersfield Office: 860-952-3878

Waterbury Office: 203-754-8000

Winsted Office: 860-952-3878

Hamden Office: 203-494-1700

Hartford Bankruptcy Law Blog

How do you start to get your debt under control?

Most people have two major financial goals: get out of debt and have a savings. For many, debt is the bigger priority because they can't even begin to start a savings account until they have some debt paid down.

Three good ways to view your individual debts

Chapter 11 bankruptcy and your reorganization plan

Chapter 11 bankruptcy is a process of debt reorganization primarily intended for businesses that are underwater with debt problems. Usually corporations are the ones that that file for Chapter 11, but small businesses might file for it as well. Individuals might also file for Chapter 11 in limited circumstances.

Although the Chapter 11 process can take more time and cost more money than other types of bankruptcy, there are advantages that come with it.

Are you doomed to life without a credit card after bankruptcy?

One of the features of bankruptcy that tends to paralyze consumers into nonaction is the loss of their credit cards -- even though they may be mostly or totally maxed out.

Fortunately, bankruptcy doesn't mean giving up all credit forever. Consider the following tips -- but talk to your attorney before you act to get advice specific to your situation:

  1. There are companies that specialize in cards that "rebuild" your credit. However, the interest rates and fees are high, so only open one as a last resort. Only keep it until you get better offers -- then either negotiate for a better interest rate or dump the card for one that lets you transfer the balance and has a lower interest fee as soon as possible.
  2. If the only bank card you have now is a "debit" card, ask for a "credit/debit" card instead. While it still functions like a debit card and relies on what is actually in your account when you use it, the "Visa" or "Mastercard" logo on the card will let you do things like make reservations or pay bills online. That can ease the frustration of not having an actual credit card.
  3. You can get a secured card. Secured cards require you to put down an amount that's about equal to whatever limit the card has. In other words, if you put down $200, you can get a $200 card (although they may allow a lower deposit). The bank then has the reassurance that they already have their money if you do default.
  4. You can reaffirm on a credit card you already have. Be careful, though -- this removes that debt from all bankruptcy protections. However, if you have a small balance on a card, it might be worth doing. One note of caution -- if you pay that card off shortly after bankruptcy, the company will probably cancel it. However, if you keep a small amount of debt on it, they usually won't. Regular payments will then help raise your credit score faster.
  5. Ask a close relative or friend to list you as an authorized user on one of his or her credit cards if you feel like he or she trusts you not to abuse the privilege. That can really help raise your credit score and qualify you for regular card of your own faster.

What's the waiting time to buy a new home after a foreclosure?

Whether you've been through a foreclosure or a short sale, you're probably eager to get back on sound financial footing again by purchasing another home as soon as possible. However, those who have been through short sales and foreclosures will need to go through a waiting period before you can buy a new home.

Waiting times for foreclosures and deeds-in-lieu of foreclosure: Most people who have been through a foreclosure will need to wait 24 to 72 months before they can get approved for a new mortgage that has a competitive interest rate.

What should be looked at when considering personal bankruptcy?

Many people, including those in Hartford, Connecticut, seriously consider personal bankruptcy as an option. While viewed by some as a drastic measure, it can be right for some people in some cases.

To know if bankruptcy is right for you, you should ask yourself some questions.

Debt relief should be pursued carefully

Residents of Hartford, Connecticut, have varying levels of debt. They may have incurred that in order to start or expand a business, to build a home, for purely personal reasons or unintentionally by overspending. However, they got the debt, many now seek debt relief. To that end, they may look at debt settlement. Those who do should be aware of why it can be a flawed approach.

Debt settlement has had a troubled history, with many companies charging large sums to people who can ill afford them, promising debt relief and failing to deliver. That practice led to substantial regulation and enforcement, which has winnowed out some of the bad actors in the field and left a higher probability that people will actually get the service that they paid for

Bankruptcy can be emerged from

Many Hartford, Connecticut, businesses are prospering. However, for others, business & commercial bankruptcy options are something worth discussing with an experienced attorney. Bankruptcy is something that has affected businesses nationwide, including in the retail sector.

Payless ShoeSource is an example of a retail company that went into bankruptcy but is now set to emerge from it. They are one of the biggest retail chains to do that successfully, which makes reading about them valuable for other businesses considering filing for bankruptcy. Payless' plan, despite the fact that many retail companies are focused on e-commerce, is to focus on brick-and-mortar sales instead. They are banking on the belief that people still want to visit physical stores in person, especially for things like shoes, which often require trying on multiple pairs and getting direct help from salespeople.

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.

The Law Offices of Ronald I. Chorches

Wethersfield Office
449 Silas Deane Hwy
Wethersfield, CT 06109

Phone: 860-952-3878
Fax: 860-513-1577
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Waterbury Office
One Exchange Place
21 West Main Street
4th Floor
Waterbury, CT 06702

Phone: 203-754-8000
Fax: 203-841-0304
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Winsted Office
487 North Main Street
Winsted, CT 06098

Phone: 860-952-3878
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Hamden Office
2558 Whitney Ave
Hamden, CT 06518

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