The Law Office of Russell Gary Small, P.C. Bridgeport CT Bankruptcy Attorney | Chapter 7, 11, 132026-05-29T02:22:28Zhttps://www.rgsmall.com/feed/atom/WordPressOn 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.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Why you should not feel ashamed to file for bankruptcy]]>https://www.rgsmall.com/?p=476352026-03-13T03:36:06Z2026-03-13T03:36:06ZAn 11% total rise in filings
According to the federal government, there was an 11% increase in the number of bankruptcies between the start and end of last year. The was a rise in every type of bankruptcy, so that means both businesses and individuals are struggling. It was not a one-off bad year, either. Total filings have risen every quarter since June 2022.
What is causing this?
Making ends meet continues to get harder for many people as well as businesses. Grocery bills have shot up in recent years, and rents and house prices have become increasingly unaffordable in many areas. The cost of health care has risen, and interest rates on debts have often gone up, too.
This might all be manageable if jobs were plentiful and wages rose accordingly. Unfortunately, that is not the case. Businesses, too, face struggles with rising competition, rising supply costs, increased rents and customers with less to spend.
Meanwhile, the wealth held by the world’s billionaires grew 18% during 2025. It has grown 80% since 2020.
If you grew up being told that the playing field was level and that anyone can thrive if they work hard enough, it can be distressing to find that you are unable to make ends meet and are in debt you cannot get out of. If you accept that what you were told is not really true, then it may become clearer that bankruptcy is an option you should have no shame about using.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Can job loss lead to dismissal of a Chapter 13 bankruptcy?]]>https://www.rgsmall.com/?p=476332026-03-04T00:15:10Z2026-03-04T00:15:10ZChapter 13 bankruptcy is a lengthy process that typically requires multiple years to complete. Individuals typically need to make between three and five years of payments after negotiating a repayment plan.
In some cases, people experience sudden financial complications during a Chapter 13 bankruptcy case. The loss of a job, for example, could make continued payments impossible for the filer to afford. Do people generally face the dismissal of a pending bankruptcy if they lose their job and cannot complete their repayment plan?
There are options after a job loss
A Chapter 13 filer has two possible solutions other than case dismissal. In some cases, they can file paperwork requesting a modification of their payment plan. After review of their change in income at a new hearing with the court-appointed trustee and representatives from affected creditors, they may be able to reduce their payments to make them affordable. The other option is to convert the case to a Chapter 7 bankruptcy. If a job loss results in an individual struggling to find new employment or accepting a new job with lower wages, they may be eligible for a Chapter 7 bankruptcy. The best solution depends on the filer’s circumstances, as well as the property that they may worry about exempting in a Chapter 7 bankruptcy. Sitting down with a bankruptcy attorney can be a smart choice for those facing complications during a Chapter 13 bankruptcy filing. Job loss can make it challenging for filers to fulfill their repayment plan, making a new strategy necessary if they hope to complete their bankruptcy and secure a discharge. ]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Can Chapter 13 bankruptcy stop a Bridgeport tax foreclosure?]]>https://www.rgsmall.com/?p=476322026-03-03T20:44:29Z2026-03-03T20:44:29ZWhy local property taxes create a crisis
In Connecticut, municipal taxes carry "super-priority" status and legally take precedence over your mortgage. If you fall behind, the tax collector initiates a foreclosure process that moves surprisingly fast. These obligations can lead to the loss of your home, even if you stay current on all other bills.
A single delinquent account with the tax collector jeopardizes your financial future. Connecticut law attaches an 18% annual interest rate to unpaid taxes, causing the debt to snowball. The high rates make it nearly impossible to pay off the balance without a structured intervention.
A repayment plan can ward off the tax collector
Filing for Chapter 13 bankruptcy triggers an "automatic stay" that immediately stops all collection actions. A “stay” freezes pending tax foreclosures and silences persistent debt collectors. Instead of losing your home, you propose a plan to pay back the late taxes over three to five years.
This court-supervised structure offers several critical protections:
Consolidation: The plan combines your past-due taxes into one predictable monthly payment.
Asset protection: You stop the city from seizing your property while you remain in the program.
Continued safety: The court protects your home as long as you stay current on plan payments and new taxes.
This structure allows you to keep your property while making manageable monthly installments. It transforms an unpayable lump sum into a schedule that fits your household income.
Securing your home and future stability
Completing a repayment plan ensures the city cannot take your home for those specific past-due amounts. You maintain your home equity and provide a stable environment for your children or retirement. You must continue paying your post-filing taxes and insurance to keep these legal protections in place.
Connecticut’s requirements involve complex paperwork and strict deadlines. Skilled legal guidance helps ensure that your plan meets court standards and protects your rights throughout the process. Knowledgeable assistance during this transition helps you move from the threat of foreclosure to a state of permanent financial recovery.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Do spouses have to file for bankruptcy together?]]>https://www.rgsmall.com/?p=476312026-02-19T04:20:48Z2026-02-19T04:20:48ZWhat’s the difference between filing individually and jointly?
The law allows spouses to file for bankruptcy individually or jointly. A joint filing combines both spouses’ debts, income and assets in one case. It can be more efficient and sometimes less expensive than filing separately. For couples facing similar financial pressures, joint bankruptcy may offer a more complete fresh start.
However, there are situations where filing individually is better. For example, if most debts are in one spouse’s name, a joint filing may not be appropriate. On the other hand, filing individually may be suitable if most debts are shared. You may also be better off going alone if your spouse has significantly better credit to preserve or if you want to protect certain assets or financial interests.
Make a careful decision
If you’re in such a situation, it’s important to look at the full financial picture -- not just the debts. Consider your household income, assets, property ownership, credit history and what you intend to achieve with the process. Remember, the specific circumstances of every case matter. What seems like the obvious choice may not always produce the best outcome.
Legal guidance can be invaluable in learning more about the pros and cons of each option. Knowing you chose the strategy that best protects your household and supports your long-term financial recovery can give you peace of mind during a rather difficult period.]]>