{Consumer Bankruptcy Tips}

It is not necessary to prove intent to violate the automatic stay when a creditor calls after you have filed for bankruptcy in order to recover damages for harassment.  Considering the previous post, you may imagine that the creditor who harassed you claims in Court, “I didn’t mean to violate the automatic stay when I sent bills and made those 3 AM phone calls.  It was an honest mistake!”  Thankfully, if he argues something like this, the Judge will side with you.

When attorneys file motions against creditors for violating the automatic stay, all they need to show is that the actions were a “willful violation” of the stay.  That  means the creditor “knew or had reason to know” that you filed for bankruptcy.  In practical terms, this means your attorney does not need to show intent or some nefarious scheme to try to collect despite the bankruptcy or sent out an incriminating memo stating a desire to violate the stay.  In other words, your lawyer merely needs to show the Court that the creditor should have known the automatic stay existed and that the creditor sent the notice.  By showing this, you will receive damages from your harassing creditor.

Of course, the nest question to be answered is "what are the damages?"  While emotions are a factor, it is impossible to put a number on them.  However, if you lose time from work or have to pay an attorney to defend you or are put to some other cost, these can be recoverable.

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

Soon after you file bankruptcy, you should expect new bills and phone calls from creditors to stop.  Sometimes they don’t.  Why?  They hope you’ll pay them anyway…without consulting your attorney, and sometimes people in bankruptcy do this.

Remember, once you file your petition, the  court imposes an “automatic stay” against creditors.  It stops all collection actions against you, including foreclosures, garnishments, attachments, lawsuits, regular monthly bills, and especially calls and letters.  By contacting you in this way, the creditor is violating the automatic stay.

The good news is that your attorney can sue the harassing creditors and make them pay you damages.  The creditors often try to weasel out of it, particularly if you didn’t pay them.  It is a big deal because bankruptcy is designed to give you the “fresh start” you deserve.  Even though creditors face large amounts in damages for violating the automatic stay, they may still try to get you to pay them.

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

Despite the lukewarm efforts by our government to fight the foreclosure crisis, there are still ways to protect your home from foreclosure.  I know because I attended and survived Max Gardner's Bankruptcy Bootcamp, featured below in Bankruptcy Man's ongoing battle against the foreboding Mortgantua.

Click here to see the New York Times article on one of my efforts to fight foreclosure in Connecticut.

(Bankruptcy Man cartoon re-posted by Eugene Melchionne, Esq. with the express permission of the creators of Bankruptcy Bill.  You can see more cartoons at http://bankruptcybill.us.)

Connecticut Foreclosure Help

If you’re in need of foreclosure help in Connecticut, please contact me for a free initial consultation and get the assistance you need from one of the best bankruptcy attorneys in Connecticut.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

You may have recently heard news about the Credit CARD Reform Act of 2009.  It just went into effect on February 22, 2010 and is intended to provide various protections to consumers to combat the wily tricks of the credit card companies.

Here's a great cartoon video (which I saw posted on the Center for Responsible Lending and Bankruptcy Bill websites) that does about as good a job of both explaining and mocking credit card practices as you might ever see.  The creator is a man named Mark Fiore.

Connecticut Bankruptcy Help

If you’re worried about credit card debt or thinking about debt negotiation or bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

The New York Times had a great February 11 article in its Real Estate section ("Mediating in Slow Motion") that highlights the challenges of fighting foreclosure in Connecticut.  The article features my clients and does a great job of examining the effectiveness (and lack of effectiveness) of Connecticut's foreclosure mediation program.

(Appropriate commentary from BAPCPA Man (http://bankruptcybill.us). Re-posted by Eugene Melchionne, Esq. with the express permissions of the creators of Bankruptcy Bill.)

The Connecticut foreclosure program entitles Connecticut homeowners to a mediation session with their mortgage lender and requires that both sides negotiate in good faith to try and work out a loan modification.

It appeared that the lender, HSCBC, was prepared to offer a loan modification.  But when they mediation began, suddenly HSBC's designated lawyer acted as if there were no such offer.  After that, all attempts to communicate with HSBC seemed to fall on deaf ears.

Read the article here for the full story.

Connecticut Bankruptcy Help

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

As discussed in a previous post on this blog, most Connecticut residents who file for bankruptcy do not actually need to to go Bankruptcy Court and go before a Bankruptcy Judge.  Rather instead, your only in-person interaction with bankruptcy officials comes at your 341 Meeting of Creditors when you meet with the trustee for your case.

That said, it's still helpful to have basic information about the Bankruptcy Courts in Connecticut.  So without further ado, here's the website along with the locations, the names of the bankruptcy judges and the bankruptcy clerks:

Connecticut Bankruptcy District Court

Website:  http://www.ctb.uscourts.gov

Court Locations:

• Bridgeport
• Hartford
• New Haven

Counties: Jurisdiction covers all Connecticut counties.

Judges:

Hon. Albert S. Debrowski
U.S. Bankruptcy Court
450 Main St.
Hartford, CT 06103
(860) 240-3679

Hon. Alan H. W. Shiff
U.S. Bankruptcy Court
915 Lafayette Blvd.
Bridgeport, CT 06604
(203) 579-5806

Hon. Lorraine Weil
U.S. Bankruptcy Court
157 Church St., 18th Fl.
New Haven, CT 06510
(203) 773-2797

Connecticut Bankruptcy Help

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

Most Connecticut residents who file for bankruptcy do not have to go to the Bankruptcy Court in Connecticut.  That's because most bankruptcy cases are filed electronically in Connecticut and in the rest of the United States.

But don't you have to go somewhere official if you file for bankruptcy?

YES. You have to go to your "Meeting of Creditors" (aka "341 Meeting") with the trustee (a meeting, fyi, that your creditors typically will not attend which means it's just you, your lawyer and the trustee.

Is the 341 Meeting at the Bankruptcy Court?

NOT NECESSARILY. Depending on where you live, your 341 Meeting may be in the Bankruptcy Court or in another building is in another building.

What are the locations for 341 Meetings?

Hartford, New London, Tolland, and Windham Counties

Ribicoff Federal Building
450 Main Street
Hartford, CT

Middlesex and New Haven Counties

Giaimo Federal Building
150 Court Street
New Haven

Fairfield andLitchfield Counties

Giaimo Federal Building
150 Court Street
New Haven

Connecticut Bankruptcy Help

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

One of the first things that happens in a bankruptcy case in Connecticut after the debtor has filed a petition, is a "Meeting of Creditors," also know as a "341 Meeting" which refers to Section 341 of the Bankruptcy Code.

What happens at a 341 Meeting and what's the experience like?

A 341 Meeting is a relatively informal meeting.  It's usually just the trustee, you and your lawyer.  Any creditors are allowed and invited to attend.  But typically they do not attend.

It's common for debtors to worry about this meeting.  Perhaps they imagine being grilled in a Perry Mason-like cross-examination about their debts and finances.  But the reality is that these meetings are often very routine and go quickly too.  The trustee just needs to ask some basic questions.  Roughly six cases are scheduled to occur every half-hour.  So you can imagine that the time spent on each case is rather short.

This doesn't mean that you take a 341 Meeting for granted.  But if you have an experienced Connecticut bankruptcy lawyer who is familiar with the trustees and the process, then you really have nothing to worry about.  The key is just a matter of good preparation.  This means your lawyer has done his or her job by filing a complete and well-thought-out bankruptcy petition.   He has also discussed all the significant issues with you ahead of time.  That way there are no surprises.

That said, it's still not uncommon for people to feel nervous when they actually go to the meeting.  A good tip is to arrive a little early.  (Fifteen minutes is a good time, but also remember to allow enough time to find that sometimes rare parking space.)  That way you get to see the trustee ask questions to other people before you.  And you'll get a sense of what it's like.  Seeing the process in person usually helps people relax.

If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

I thought it might be of interest to readers to take a look at relevant bankruptcy news in Connecticut for the past week or so.

1.  Personal bankruptcies easing after dramatic increase in '09 (theDay.com)

Connecticut saw 8,618 bankruptcies last year--90% of which were Chapter 7 bankruptcy filings.  That's the highest number of bankruptcies in Connecticut other than 2005 when the new bankruptcy law was passed and there was a rush to file before it went into effect.  Despite the high numbers, however, 4th quarter trends apparently indicate that the number of bankruptcy filings in Connecticut slowed town a bit, perhaps a promising sign of a return to economic growth in the near future.

2.  Foreclosures Slow in New London County (theDay.com)

"The county recorded 1,326 foreclosure filings last year, compared with 1,511 the year before, according to numbers released Thursday by California-based RealtyTrac."  That's 1 foreclosure for every 88 housing units, a better rate than Connecticut as a whole.

3.  Bernie's Bankruptcy Shocks Customers (MyRecordJournal.com)

In a surprise to its customers, electronics and appliances retailer Bernie's filed for Chapter 11 and closed all 15 of its stores.  Store locations included the Queen Street retail center, as well as locations on Universal Drive in North Haven and Lakewood Road in Waterbury.  Bernie's also had stores in Rhode Island and Massachusetts.  The chain dates back to 1947 in Hartford when Bernie Rosenberg began selling TVs out of a gas station.

4.  Connecticut is losing residents (MyRecordJournal.com)

A study by Atlas Van Lines indicates that Connecticut currently has the highest move-out-of-state rate.  In the bigger picture, many residents are leaving Connecticut and the Rust Belt States and heading southwest.  Interestingly, the distressed real estate markets in Nevada and Texas are attractive to snow-birds from Connecticut and elsewhere.

5.  Stamford accountant admits role in mortgage fraud (StamfordAdvocate.com)

Stamford accountant Jose I. Flores waived his right to indictment and admitted to participating in a mortgage fraud scheme in which he conspired with others to defraud mortgage lenders by providing fraudulent "accountant letters" as proof of income for people buying homes. In the scam, Flores and others would provide letters that falsely indicated how long mortgage applicants had been self-employed or working as landscapers and cleaners.

If you're thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

If you file for bankruptcy in Connecticut or anywhere else, then one piece of information you need to know is your "household size."

Why is household size so important?  Because of the Means Test.

Under the Means Test, you can file for Chapter 7 bankruptcy only if your monthly income is below the monthly median income for your state.  If you live by yourself in Waterbury, CT, then that means your household size is 1 and your income needs to be less than $4,877.

However, if your household size consists of more than 1, then the threshold for monthly median income increases.  In other words, the more people in your household, the higher the ceiling you have for meeting the median income standard that would enable you to file for Chapter 7 bankruptcy in Connecticut.

Below are the current monthly median incomes for Connecticut.  These are subject to change each year, so be sure to consult with an experienced Connecticut bankruptcy attorney before filing.

• 1 person = $4,877
• 2 people = $6,049
• 3 people = $7,220
• 4 people = $8,510
• 5 people = $9,085
• 6 people = $9,660

And what is a "household"?  It doesn't have to just be direct relatives such as a spouse or children.  Though those certainly would count.  But it could be a grandparent or even a roommate.

Household size and the Means Test are not always simple or straightforward things to figure out.  In some ways, it's like figuring out your taxes.  You want to make sure that only the required items are counted as income and that you take any deductions for which you are eligible.  Additionally, intelligent pre-bankruptcy planning can be extremely helpful.

For these reason, if you're considering filing for bankruptcy in Connecticut, make sure to consult with an experienced and reputable Connecticut bankruptcy attorney.

Please contact me for a free initial consultation to get answers to questions on household size, the means test and other bankruptcy topics.

Contact Attorney Melchionne

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437