The Law Office of Russell Gary Small, P.C. Bridgeport CT Bankruptcy Attorney | Chapter 7, 11, 132026-07-07T10:06:24Zhttps://www.rgsmall.com/feed/atom/WordPressOn Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Are foreclosures happening more often?]]>https://www.rgsmall.com/?p=476532026-07-07T06:38:59Z2026-07-07T06:38:59ZYes, foreclosure rates have been going up in recent years. For example, in August 2025, foreclosures were 18% higher than they were in August 2024. They had risen for six months in a row prior to reaching that level.One woman whose home was being foreclosed upon said that it was the overwhelming debt she faced from a variety of sources that caused her house to become unaffordable. This included paying the mortgage, paying for her car and paying for other necessities.Researchers note that many costs associated with homeownership have been going up. This includes the cost of repairs, utilities, homeowners insurance, property taxes and much more. Someone who may have felt their home was very affordable just five years ago could feel much differently today.
What are your options to address a foreclosure?
If you are facing foreclosure or are behind on your mortgage payments, you do need to know exactly what steps to take. You should receive appropriate notices informing you that the foreclosure is coming and giving you a chance to get current on your mortgage loan.One thing to consider is that filing for bankruptcy puts an automatic stay on your foreclosure case, along with other collection efforts. This does not mean that it prevents the foreclosure entirely, but simply that the case has to be put on pause while you go through bankruptcy. This can sometimes allow you to address other debt and make your home affordable once again.With foreclosures on the rise, more and more Americans are going to need to know exactly what legal options they have to protect their future.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What is the difference between bankruptcy and reorganization?]]>https://www.rgsmall.com/?p=476522026-06-30T20:22:31Z2026-06-30T20:22:31Z people hear the word “bankruptcy” they often picture a business shutting its doors or an individual losing everything. In practice, bankruptcy is a legal framework that can help provide financial relief through different paths, each designed to address debt in a structured way. Reorganization is, in fact, a type of bankruptcy. The following will provide more information on the difference between the more commonly recognized form of bankruptcy, known as liquidation, and reorganization. While the terms are sometimes used loosely, the difference is significant: one focuses on winding down and distributing assets, the other focuses on restructuring and moving forward.
What people mean by “regular bankruptcy”
In everyday conversation, “regular bankruptcy” usually refers to a liquidation-style case. For individuals, this is often associated with Chapter 7. For businesses, it can resemble a wind-down where assets are sold and proceeds are used to pay creditors according to legal priority rules.The core idea is finality. The case resolves debt by converting nonexempt assets into funds for creditors, then providing a discharge for eligible debts in many individual cases. Businesses that liquidate typically close after the process finalizes.
What is reorganization?
Reorganization, commonly associated with Chapter 11 for businesses and Chapter 13 for individuals, focuses on rehabilitation rather than closure. The individual seeking relief through bankruptcy proposes a plan to repay some or all debts over time, often with modified terms such as extended payment periods, reduced interest, or adjusted principal balances depending on the circumstances and the chapter involved.
What is the difference between the two?
To clarify the practical differences, it helps to compare the two approaches side by side.
Primary objective: liquidation aims to end the financial chapter, reorganization aims to preserve operations or stabilize household finances
Timeline and structure: liquidation is often faster and more transactional, reorganization is plan-driven and can take months or years
Impact on ongoing operations: liquidation often ends a business, while reorganization can keep it running while addressing debts
After considering these points, many readers find the decision becomes less about labels and more about whether there is a viable path forward with predictable payments.
Which path is right for me?
There are benefits and risks to moving forward with bankruptcy. Those who are considering this form of financial relief will need to decide which chapter is best for their situation. This decision often turns on a few practical questions. Answering the following questions can help lead you in the right direction:
Do you have steady income or revenue to fund a plan?
Are there assets you need to keep that could be at risk in liquidation?
Is the debt structure negotiable through a court-approved plan?
After gathering this information, a consultation with an experienced bankruptcy attorney can help to iron out the details and begin the process with the right chapter for your specific situation.These bankruptcy processes share the same courtroom but serve different purposes. Liquidation prioritizes closure and distribution, while reorganization prioritizes continuity and structured repayment. Understanding that distinction is the first step toward using bankruptcy law as it was intended: as an orderly solution, not a financial dead end.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Technical errors may influence the foreclosure process]]>https://www.rgsmall.com/?p=476512026-06-19T00:05:34Z2026-06-19T00:05:34ZMistakes can derail foreclosure attempts
Federal regulations and state laws both impose clear restrictions on the foreclosure process. Homeowners must miss enough payments for foreclosure to be a valid legal option. The lender must provide formal notice in writing before the foreclosure process begins.
In some cases, lenders may have failed to comply with communication requirements, which could force them to restart the foreclosure process. Other times, accounting mistakes, such as failing to credit an account, might mean that the homeowner is not currently at risk of foreclosure because they do not have enough outstanding missed payments.
Connecticut offers various systems to reduce the risk of foreclosure, including a foreclosure mediation program. In some cases, sitting down with a lender in a confidential mediation setting can help homeowners avoid foreclosure. Homeowners may need help determining what approach is most likely to help them protect their homes and accumulated equity.
Reviewing all communication with the lender with an attorney can help homeowners explore different solutions for defending against foreclosure. If lenders make mistakes regarding paperwork or financial records, those technical areas can influence the best strategy for fighting the foreclosure process.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What is the waiting period to file for bankruptcy again?]]>https://www.rgsmall.com/?p=476502026-06-11T08:58:54Z2026-06-11T08:58:54ZAlthough many people only file for bankruptcy once, it is possible to file multiple times. However, you cannot always do so right away. There is a waiting period that must be observed before a subsequent filing.
Exactly how long you have to wait will depend on the type of bankruptcy you filed the first time. Your original chapter filing and your new chapter filing have to be considered together.
Chapter 7 bankruptcy
First and foremost, perhaps your original filing was for Chapter 7 bankruptcy, otherwise known as liquidation bankruptcy. You had to liquidate non-exempt assets and pay back what you could to creditors before having the rest of the debt discharged.If your new filing will also be for Chapter 7 bankruptcy, then you have to wait a full eight years. But if the new filing will be for Chapter 13, then you only have to wait four years.
Chapter 13 bankruptcy
On the other hand, perhaps your initial filing was a Chapter 13 bankruptcy, which reorganizes your debt into a repayment plan. You do not have to liquidate assets to pay back creditors, but instead do so over time.If you want to file for Chapter 13 bankruptcy again, then you only have to wait two years to do so. But if you would like to file for Chapter 7 bankruptcy the second time, then you may have to wait up to six years.
Considering your bankruptcy options
Whether you are filing for the first time or looking into filing again, it is crucial that you understand exactly what bankruptcy options you have. It can help to work with an experienced attorney to determine your eligibility.
]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Americans are defaulting on car loans at record rates]]>https://www.rgsmall.com/?p=476492026-05-29T02:22:28Z2026-05-29T02:22:28ZRecent reports looking at subprime auto loan delinquencies have discovered that they are reaching record rates. For instance, the delinquency rate recently hit the highest level since 1994. When looking at car owners who are at least 60 days behind, it becomes clear that people are missing car payments more often today than they have in 32 years.Part of this could be the cost of a new car payment. The average is now $774 per month. That is far higher than the average payment in 1994 and shows that rising costs may play a part in these missed payments.
A red light for the economy
It is not just car loans that are the issue here. Many researchers warn that this is a red flag for the economy as a whole. It could indicate that more people will start to enter foreclosure proceedings on their homes, default on credit card debt or declare bankruptcy.Part of the issue is that people often prioritize their car loans over almost everything else. If someone only has enough money to pay their credit card bill or their car loan, they will choose the car loan so they do not lose their source of transportation. This can be critical, even if they have a limited income.As such, if people are defaulting on car loans at record numbers, that means they are probably experiencing significant financial issues beyond those loans themselves. They may also have overwhelming credit card debt, mortgage loans, business loans, medical expenses and much more.
Considering your bankruptcy options
These reports show that the economic situation in the United States could be heading for significant issues, and it will be important for individuals to understand exactly what legal options they have when it comes to debt consolidation and bankruptcy.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[The biggest misconceptions about Chapter 7 bankruptcy]]>https://www.rgsmall.com/?p=476472026-05-17T03:07:32Z2026-05-17T03:07:32ZUnderstanding Chapter 7 bankruptcy
To begin, it is important to understand what Chapter 7 bankruptcy is. Chapter 7 bankruptcy, often called liquidation or straight bankruptcy, allows individuals to seek relief from debt through the bankruptcy court. If the court approves the filing, an automatic stay immediately goes into effect, temporarily stopping creditors from collecting payments, filing lawsuits or taking other collection actions.
During the process, certain non-exempt assets may be sold to repay creditors before remaining eligible debts are discharged. Chapter 7 can eliminate many forms of unsecured debt and is the most common type of bankruptcy, typically available to individuals with limited income.
What to know about exemptions
Despite how common Chapter 7 bankruptcy is, many people avoid exploring it as an option because of widespread misconceptions about it. One of the biggest myths about Chapter 7 bankruptcy is that filing means losing everything you own.
In reality, bankruptcy laws include exemptions that protect many important assets, including certain amounts of home equity, individual vehicles and certain personal assets. While every situation is different, many people who file are able to keep the property they rely on every day.
Overcoming the fear of embarrassment and shame
Some people also avoid bankruptcy because they worry about embarrassment or judgment. Although bankruptcies are technically public records, most people are not actively searching for them. In many cases, friends, coworkers or neighbors never know someone has filed unless that person chooses to share it.
Additionally, people may find that others are more understanding than they expected. With many households facing increasing financial pressure, bankruptcy filings have continued to rise. Approximately 357,000 Chapter 7 bankruptcy cases were filed in the United States during 2025, representing roughly a 15% increase compared to 2024. Financial hardship can happen for any number of reasons, including medical bills, job loss or unexpected emergencies, and seeking relief is often an important step rather than a personal failure.
If debt has become difficult to manage, speaking with a legal professional can help you better understand your options and whether Chapter 7 bankruptcy could provide a path toward financial relief.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What is a Chapter 22 bankruptcy?]]>https://www.rgsmall.com/?p=476462026-04-29T15:53:08Z2026-04-29T15:53:08ZSpirit Airlines and Joann Fabrics. Some businesses may need to consider a Chapter 22 bankruptcy if they struggle to regain solvency after previous financial struggles.
Chapter 22 bankruptcy is, effectively, Chapter 11 bankruptcy redo
Chapter 22 bankruptcy isn't actually a new or special form of bankruptcy. It is a second Chapter 11 filing pursued by an organization that has not become profitable again after completing a Chapter 11 bankruptcy.
Perhaps new financial challenges arose after the completion of a Chapter 11 reorganization plan, preventing the company from fulfilling all financial obligations despite previously reorganizing to improve solvency. Maybe it is now clear that the company requires dissolution, and leaders want to maximize the sale prices of critical assets by liquidating them over an extended period instead of rapidly in a Chapter 7 filing.
Chapter 22 bankruptcy can be an option for companies that previously attempted to restructure but did not become profitable again despite prior Chapter 11 proceedings. Chapter 22 bankruptcy filings are often subject to far more scrutiny from the courts than the first Chapter 11 bankruptcy.
Experienced legal representation is critical for organizations hoping to initiate Chapter 11 proceedings again after a prior attempt at reorganization. Consulting with a business bankruptcy attorney can make Chapter 11 bankruptcy, including a second filing when appropriate, more accessible to struggling companies.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What debts can Chapter 7 bankruptcy wipe out in Connecticut]]>https://www.rgsmall.com/?p=476452026-04-29T11:55:10Z2026-04-29T11:55:10ZFiling for Chapter 7 bankruptcy can erase many debts and give you a fresh start. Knowing which debts qualify helps you decide if it is the right option.
Debts that Chapter 7 can discharge
Chapter 7 wipes out unsecured debts. These are debts not tied to property like a home or car. Common examples include:
Credit card balances: Outstanding balances on personal cards.
Medical bills: Unpaid hospital and doctor fees.
Personal loans: Unsecured and signature loans.
Collection accounts: Debts sold to third-party collectors.
Deficiency judgments: Remaining balances after a repossession or foreclosure.
Overdue utility bills: Past-due amounts owed to utility providers.
Civil judgments: Most court-ordered monetary judgments from unpaid debts.
Discharging these debts can also stop wage garnishments and collection calls.
Debts that Chapter 7 cannot discharge
Not every debt qualifies for discharge. Some obligations survive bankruptcy regardless of your financial situation. These non-dischargeable debts include:
Child support and alimony: Domestic support obligations remain in full.
Student loans: Dischargeable only if you prove undue hardship in court.
Recent tax debts: Most income taxes from the last three years.
Fraudulent debts: Debts arising from dishonesty or misrepresentation.
Criminal fines: Court-ordered penalties and DUI-related damages.
Unlisted debts: Any debt you fail to include in your petition.
Knowing these limits helps you set realistic expectations before you file.
Connecticut exemptions and secured debt
Connecticut General Statutes § 52-352b protects certain property from creditors during bankruptcy. Key exemptions include up to $250,000 in home equity, up to $7,000 in vehicle equity and tools necessary for your trade or occupation. To keep a secured asset like a car or home, you must reaffirm that debt by signing an agreement to continue payments. Connecticut lets you choose between state and federal exemptions but you cannot combine both sets.
Speaking with a bankruptcy attorney
Chapter 7 rules involve eligibility requirements, exemption calculations and filing deadlines that vary by situation. An attorney can help you understand how these rules apply to your specific debts and assets. Speaking with an attorney may also clarify whether Chapter 7 is the right path or whether another option better fits your circumstances.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Know how Chapter 13 bankruptcy works and how it can help you]]>https://www.rgsmall.com/?p=476442026-04-16T18:06:19Z2026-04-16T18:06:19ZFacing overwhelming debt can feel stressful and uncertain, especially when bills continue to grow. Chapter 13 bankruptcy offers a structured option for individuals who want to regain control of their finances without losing everything they own.
Often referred to as a reorganization process, Chapter 13 bankruptcy allows you to repay debts over time based on your income.
Understanding how Chapter 13 works
Chapter 13 is designed for individuals with regular income who can commit to a repayment plan. Once filed, it groups your debts into a structured system that is reviewed and approved through a formal process.
The role of the repayment plan
One of the key features of Chapter 13 is the repayment plan. This plan usually lasts between three to five years and is based on your income and necessary living expenses. You make regular payments, and the trustee distributes these funds to creditors.
Protection through the automatic stay
Once you file, an automatic stay takes effect, which temporarily stops collection efforts such as calls, lawsuits and wage deductions. This protection gives you time to organize your finances without constant pressure from creditors.
Eligibility and requirements
Not everyone qualifies for Chapter 13. You must show that you have a steady income and meet certain debt limits. You are also required to provide detailed financial information during the filing process.
How Chapter 13 can benefit you
Chapter 13 can help you keep important assets such as your home or vehicle while catching up on missed payments. It also creates a clear path to reducing debt in a controlled way by encouraging disciplined financial management and providing an opportunity to rebuild credit over time.
Final thoughts
While Chapter 13 requires commitment, it can be a valuable option for those seeking to manage debt without starting from zero. With the right preparation, it offers a structured route toward financial recovery.Seeking proper legal guidance can help you understand if this option suits your financial situation and long-term goals.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Pursuing mortgage modification during foreclosure mediation]]>https://www.rgsmall.com/?p=476432026-03-31T23:47:04Z2026-03-31T23:47:04ZWhat happens during foreclosure mediation?
The goal of foreclosure mediation is to find a solution that does not involve the property owner losing their home and accumulated equity. Reasonable mortgage modifications are the ideal outcome of mortgage mediation.
If lenders and homeowners can agree on arrangements, such as increasing the repayment period, moving missed payments to the end of the repayment period or locking in a lower interest rate, the property owner may be able to retain the home. Individuals anxious about the prospect of foreclosure are not in the best mental state to advocate for their own homeownership during mediation.
Thankfully, they have the right to hire an attorney to represent them during that process. An attorney can help determine the best modifications to request and can handle high-pressure negotiation tactics during foreclosure mediation sessions.
Working with a lawyer to mediate foreclosure matters and explore possible modifications with a lender can be a viable option for homeowners. Foreclosure mediation is one foreclosure defense strategy among many that property owners may need to consider as they look for ways to preserve their primary residences.]]>