Bridgeport Law Blog

About two-thirds of the people who file personal bankruptcies in Connecticut and around the country each year do so to avoid crushing medical bills, according to a recent study published in American Journal of Public Health. A team of researchers that included a doctor from the Hunter College of City University of New York, two lawyers and a Consumer Bankruptcy Project sociologist came to this conclusion after studying 910 Chapter 7 and Chapter 13 bankruptcy petitions filed between 2013 and 2016.

The research has attracted a large amount of media attention as it is the first major study of medical debt-related bankruptcy since President Obama signed the Affordable Care Act into law in 2010. Lawmakers hoped that the landmark health care law would address the problem, but the researchers found little evidence to suggest that this has happened. According to the research team, as many as 530,000 American families face financial ruin because of illness or injury each year.

Prior to 1976, Connecticut residents could potentially have their student loans discharged through bankruptcy. In 1976, the law was amended to include student loans that had been in repayment for at least five years. That was later extended to seven years before Congress moved to exclude student loans from most bankruptcy cases. Today, an individual can only have such debt wiped away in bankruptcy if making payments constitutes a hardship.

Most courts use the Brunner test to determine if such a hardship exists. To pass the test, a person would first need to show that he or she couldn't maintain a minimum standard of living because of student loan obligations. Furthermore, it must be shown that the hardship will exist for as long as the debt is outstanding. A borrower must make a good faith effort to make payments even if none are actually made.

When people in Connecticut get a divorce, they may have to decide what to do with the home they own. Some couples might agree to sell the house, but this often comes at the order of a judge rather than through negotiations.

If one spouse takes the home, that person should make sure that the mortgage, taxes and other upkeep is affordable. Another common error spouses make is not removing the one who no longer owns the home from the deed even if they refinance the mortgage. While this can be a way to reduce paperwork, it also means the couple remains linked financially. If an amicable divorce stops being amicable, this could create problems.

Many problems can arise when Connecticut parents are going through a divorce. While most issues can be resolved through negotiation and compromise, situations can be much worse if one parent has a problem with alcohol. For example, there may be justifiable concerns with a parent drinking and driving with a child in the car.

A parent could potentially get emergency custody if there is evidence showing that the child is in danger. Unfortunately, without a police report or another kind of proof, it could be difficult for the parent to demonstrate this. Child care providers or other witnesses might be able to provide testimony. However, alcohol abuse may be particularly difficult to prove.