The Law Office of Russell Gary Small, P.C. Bridgeport CT Bankruptcy Attorney | Chapter 7, 11, 132026-10-08T16:06:28Zhttps://www.rgsmall.com/feed/atom/WordPressOn Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Will one missed payment trigger foreclosure?]]>https://www.rgsmall.com/?p=476762026-10-08T16:06:28Z2026-10-08T16:06:28ZYou have been paying your mortgage for years, and you always make the payments. But then you miss one, perhaps because of an oversight or maybe because you genuinely do not have the funds that month. Suddenly, you are worried that your lender is going to foreclose on your home because of that missed payment.
The good news is that one missed payment typically does not start the foreclosure process. In fact, you may be given a grace period of around 15 days. After the payment becomes 30 days late, your mortgage lender will likely send you notices, both that you need to make the payment and that they are going to report it to national credit bureaus.
The pre-foreclosure process
But even being a month late does not mean that they are going to start the foreclosure process. It generally takes 90 days, or three consecutive missed payments, for your lender to even start the pre-foreclosure process. This is when you will get more notifications and communications from them telling you that your account is delinquent and you need to get caught up on these payments.Once you reach 120 days late, or four months, that is usually when the lender starts the actual foreclosure process by putting a lien on your property. This is when you will begin getting notices that you need to vacate. The lender is going to reclaim that property because you have defaulted on your loan.So, while it is important to get current if you have missed a mortgage payment, the foreclosure process will not start instantly. It usually takes three missed payments before the lender begins moving in that direction. That said, if you believe you will not be able to make payments in the future and foreclosure may be coming, it is important to know what legal options you have.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Bankruptcies went up by more than 12 percent last year]]>https://www.rgsmall.com/?p=476652026-09-23T15:07:34Z2026-09-23T15:07:34ZIn the 12 months prior to June 30, 2026, reports found that bankruptcy filings went up by a full 12.2%. This does not mean they have reached historic highs, but it is a stark departure from the trend of the last decade, when bankruptcy filings were on the decline. For each quarter, bankruptcy totals have increased.The overall statistics indicate that there were 608,511 bankruptcy cases over that time. In the year prior, which ended on June 30, 2025, reports showed that there were 542,529 bankruptcy cases.There is some difference between commercial filings and non-commercial filings. Non-business bankruptcies went up by about 12%, but business filings saw an even greater rate of change. Over the same time period, they rose by 16.9%. There were far more personal bankruptcy filings on the whole, as there were only 26,941 business bankruptcy filings, but the rate of change is still notable. It shows that financial stress is impacting consumers and businesses alike.
What are your bankruptcy options?
If you have been considering bankruptcy, the type of filing you use helps to determine what options you have and how the process works.For instance, consumers often use Chapter 7 or Chapter 13 bankruptcy. Commercial clients often use Chapter 11 bankruptcy. It often depends on whether you want to reorganize your debt into a repayment plan or if you are looking to liquidate assets and eliminate remaining debts.No matter what your situation looks like, it is clear that bankruptcies are becoming more common in the United States, so it is good to be aware of your legal options.
]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What happens to credit cards during Chapter 7 bankruptcy?]]>https://www.rgsmall.com/?p=476632026-09-16T14:11:41Z2026-09-16T14:11:41ZAn end to collection efforts
Those who have fallen behind on their payments or exceeded their credit limit may receive calls, emails and letters from their lenders attempting to bring the account back into compliance. Collection activities typically halt immediately once the courts issue an automatic stay for the person who filed for bankruptcy.
The closure of open accounts
People might try to maintain their financial flexibility by choosing not to include one of their credit cards in the list of dischargeable debts they provide to the courts. They may also avoid carrying a balance on the account in the hopes of keeping it open. Lenders notified of a borrower’s pending bankruptcy generally freeze or close any open revolving lines of credit. Doing so limits the risk of fraud and losses for the organization.
A discharge of balances
If the bankruptcy case is successful, people can eliminate their unsecured credit card debt in a matter of months. Chapter 7 bankruptcy typically makes people eligible to discharge credit card balances and debt that began with credit card spending.
Reviewing one’s personal financial obligations with a bankruptcy attorney can help people understand what to expect when they file. People who prepare in advance for the closure of their credit lines can avoid many secondary financial complications when they initiate Chapter 7 bankruptcy proceedings.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Medical bankruptcy is still possible with health insurance]]>https://www.rgsmall.com/?p=476622026-08-27T14:49:01Z2026-08-27T14:49:01ZOne key component of a bankruptcy filing may be medical debt. In some cases, people are facing hundreds of thousands of dollars in debt, so it is the main reason that they are filing. But in other cases, medical debt is just one component, along with things like credit card debt, financial issues caused by job loss and other such factors.Medical care is often expensive, and a significant surgery or another procedure could cost more than a person earns in a year. It is unaffordable for them unless they are already very wealthy.To mitigate this risk, many people simply carry health insurance. They pay a monthly premium, and the insurance should then cover these costs. But this does not guarantee that medical bills will not contribute to a bankruptcy filing.
Some costs may still apply
For one thing, people still often have to pay for a portion of their services, which may only be partially covered by insurance. They may also have to pay until they meet their deductible, which can lead to thousands of dollars in debt. A person who has many other types of debt to go along with these medical bills may still file for bankruptcy.
Out-of-network services
Additionally, health insurance often only works with a certain hospital or medical service network. A person may inadvertently get out-of-network services, especially if they are out of state or even out of the country at the time of an emergency. Their insurance may then deny them coverage, meaning that they still incur significant debt, even though they have an insurance policy.This helps to show how medical costs contribute to bankruptcy filings in the United States. Those facing overwhelming debt need to know what legal steps to take. ]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What is a law day in a Connecticut foreclosure?]]>https://www.rgsmall.com/?p=476592026-08-25T13:08:46Z2026-08-25T13:08:46ZHow do law days work in strict foreclosure?
In a strict foreclosure, the court sets law days for you and certain other parties with an interest in the property. The timeline generally works this way:
Property owner: As the property owner, you generally receive the first law day.
Other lienholders: Creditors with claims against the property may receive later law days based on the priority of their liens.
Title transfer: If no eligible party redeems, the foreclosing party can gain full ownership after the remaining law days pass.
Unlike foreclosure by sale, strict foreclosure does not involve a public auction.
What can you do before your law day?
Because your right to redeem ends if you miss your law day, it is important to understand what options may be available before that date.
Depending on the stage of your case, foreclosure options may include:
Foreclosure mediation, if you meet the program requirements and deadlines
A loan modification through your lender
Bankruptcy, depending on your financial circumstances
These options may become more limited as your foreclosure progresses, so timing can affect what choices remain available.
Understand your options before the deadline
Your law day is an important deadline because waiting until it passes can leave you with fewer ways to address the foreclosure. Review your judgment and other court notices as early as possible. If you are unsure how the foreclosure order affects you, legal guidance can help you understand your deadlines and the options that may still be available.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[What happens if you miss a Chapter 13 payment?]]>https://www.rgsmall.com/?p=476572026-08-12T14:58:52Z2026-08-12T14:58:52ZChapter 13 bankruptcy allows you to keep your property while paying off your debts through a court-approved repayment plan that generally lasts three to five years. That arrangement can provide much-needed structure when you are struggling financially, but it also comes with an obligation to keep your payments current.
Falling behind on payments can give the trustee grounds to seek dismissal, which means asking the bankruptcy court to dismiss your case. You may then need to respond within a specified timeframe to explain why the case should continue or how the payment problem can be resolved. If your case is dismissed, creditors may then resume collection efforts or pursue remedies that had been blocked by the automatic stay. You may still be eligible to file afresh, but the consequences may be far-reaching.
Can you fix a missed Chapter 13 payment?
A single missed payment does not necessarily result in immediate dismissal. If the missed payment is temporary and you can bring the plan current, catching up may be the simplest solution. If your financial circumstances have changed significantly, continuing to make an unaffordable payment may not be realistic, and you may have options beyond simply trying to catch up. In some cases, you may be able to request a Chapter 13 plan modification that adjusts your payment terms to reflect a significant change in your financial circumstances.
Why legal guidance matters after a missed payment
The right response depends on why you missed the payment, how far behind you are and whether your current Chapter 13 plan remains workable. If the trustee seeks dismissal because you have fallen behind, you need to respond promptly and take appropriate steps to address the default.The sooner you act, the more options you may have. Legal guidance can help you understand your options and determine the most appropriate path forward.
]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[How Bridgeport homeowners can avoid a foreclosure auction]]>https://www.rgsmall.com/?p=476562026-08-12T06:52:57Z2026-08-12T06:52:57Zseveral options to address a foreclosure, depending on the case stage and your financial circumstances.
Legal options to stop a Connecticut foreclosure auction
In Connecticut, foreclosure is a judicial process. A lender must file a lawsuit before the property can be sold at a foreclosure auction. If you are facing foreclosure, taking the following steps may help stop the proceedings:
File bankruptcy: Filing for Chapter 13 bankruptcy may temporarily pause foreclosure with an automatic stay. This can give you time to pay the missed mortgage payments through a court-approved repayment plan.
Pay your past-due mortgage payments: Depending on the stage of the foreclosure and the terms of the loan, paying the required amount to reinstate or satisfy the mortgage may stop the foreclosure process.
Apply for a loan modification: You can ask your lender whether they can modify the loan terms, reduce your monthly payment or provide another arrangement for addressing your missed payments.
Consider Connecticut mediation: Look for the Connecticut foreclosure mediation program, which may give you an opportunity to negotiate different payment terms with your lender and potentially avoid foreclosure.
Your legal options may become more restricted as the foreclosure case moves closer to the auction date. Failing to respond to court notices or meet deadlines can reduce your options, so it is important to act promptly after receiving foreclosure papers.
Review your options before the auction
Receiving foreclosure papers does not mean the process has reached its end. You may still have options like bankruptcy, repayment, loan modification or mediation. It will be good to act fast because it will give you enough time to consider your alternatives. The appropriate option will depend on the stage of the foreclosure and your financial circumstances.]]>On Behalf of The Law Office of Russell Gary Small, P.C.<![CDATA[Bankruptcy documents you should have before filing]]>https://www.rgsmall.com/?p=476552026-07-20T20:11:06Z2026-07-20T20:11:06ZPreparing the necessary paperwork before filing for bankruptcy can save time and help avoid unnecessary delays. Complete financial records allow your situation to be evaluated accurately and help ensure the required information is available from the start.
Whether you are preparing for Connecticut bankruptcy under Chapter 7 or Chapter 13, organizing your documents early can make the process more manageable. Having everything in one place also makes it easier to respond to requests as your case moves forward.
Gather your financial records
Start by collecting documents that show your current financial condition. Recent bank statements, credit card statements, loan records, monthly bills, and receipts for major purchases can provide a clear picture of your income, expenses, and outstanding debts. These records help demonstrate your overall financial circumstances.
Collect proof of income
Income documentation is an important part of filing for bankruptcy. Gather recent pay statements, tax returns, benefit statements, or records of self-employment income if applicable. Accurate income information helps determine which bankruptcy option may be appropriate based on your financial situation.
Organize records of your property
You should also collect documents relating to the property you own. Vehicle titles, mortgage or lease agreements, insurance policies, retirement account statements, and records showing the value of significant assets should all be kept together. These documents help create a complete inventory of your assets.
Keep legal documents available
Court-related records may also be necessary during the bankruptcy process. Gather divorce orders, child support obligations, previous judgments, pending lawsuits, and any other legal documents that affect your finances. Keeping these records organized can help prevent delays and provide a clearer understanding of your obligations.
Save records of your debts
Maintain copies of loan agreements, collection notices, promissory notes, creditor correspondence, and documents showing money owed to or by you. Reviewing these records carefully helps ensure that all financial obligations are properly identified before your bankruptcy paperwork is submitted.Preparing for filing for bankruptcy begins with complete and organized documentation. If you are considering Connecticut bankruptcy, gathering these records early can make the process smoother and reduce unnecessary complications. If you have questions about the documents required or your available options, seek legal guidance before filing.]]>On 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.]]>