Connecticut Community Action Program Declares Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

The Norwalk Economic Opportunity Now (NEON) has filed for Chapter 7 bankruptcy after having served that Connecticut city for more than 30 years. At the time of the bankruptcy, the agency reportedly had $4 million in debt and less than 10% of that in assets. Nancy Chapman, writing for Nancy on Norwalk, reports that two groups are looking to step into the void as the registered Community Action Program (CAP), also called a Community Action Agency (CAA), to provide the services that are now lacking in the community. Chapman writes that the Rev. Lindsay Curtis is attempting to establish a CAP agency through the Department of Social Services. South Norwalk Community Center (SoNoCC) Deputy Director Pat Ferrandino has announced similar plans. The Rev. Tommie Jackson, NEON “transitional” CEO and president, stated that NEON is scheduled to appear in front of a federal trustee in the United States District Court in Bridgeport in July. NEON Board Chairman Mike Berkoff said that the lengthy bankruptcy process was due to an abundance of paperwork that needed to be done, mainly in the accounting and HR departments; state decertification and payroll issues also had to be addressed. The Department of Social Services (DSS) agreed to provide NEON with $109,000 to pay its staff and to fund the winding down the agency, according to both Jackson and DSS spokesman David Dearborn. Norwalk mayor Harry Rilling said he was not surprised that both Reverend Curtis and SoNoCC are interested in forming a CAP agency. From Chapman’s article, Rilling states, “’The state of Connecticut has to put out a request for proposals. They will select the program they think will most meet the needs of the city of Norwalk and do so in the most effective and efficient manner…There’s room for everybody to be involved and for everybody to pull together and to finally start working together for the betterment of Norwalk and the people who and the services. We have to get rid of this feeling of division that currently exists. There’s no need for it. There’s no room for it and we have to work together. Whatever form that takes, that’s what we have to do. I know that I’ve been speaking with different people from both organizations and I feel that they both have the desire to work to together. Well, now it’s time to put that into action.’” If you are facing piles of unpaid credit card bills, medical bills and deficiencies on foreclosed mortgages or repossessed cars due to long-term unemployment, filing for Chapter 7 or Chapter 13 personal bankruptcy with a Client First Bankruptcy attorney at your side may be the key to your financial freedom. For your free initial phone consultation, please call us at 800-383-6004 Monday-Friday from 8:30 a.m. – 6:00 p.m. Central Time. For up-to-date information on filing your personal bankruptcy, you can log onto www.clientfirstbankruptcy.com anytime. We have helped thousands of clients discharge their debt; we may be able to help you too. Stop struggling with bills; stop dreading phone calls from creditors and start living debt-free. What are you waiting for? Call us today.