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Bankruptcy Law Updates

Here you will find various articles related to bankruptcy, and bankruptcy in Connecticut. Learn about bankruptcy and marriage, liens on property, bankruptcy and real estate and how to deal with creditors.

This section of our website is like an FAQ. If you still haven’t found the information you’re looking for, feel free to contact our office – we’d be happy to help you.



  • Bankruptcy of Ford, Heinz and Hershey

    Today we’re going to look at 3 giants of the American economy who declared bankruptcy. One giant started his life as a watch-maker. This watch-maker pioneered a revolution in transportation and indeed his contribution is still with us in the world every day of the week. Our second giant started life as a farm boy […]

  • Rembrandt, Morris and Jay Cooke

    Today we’re going to take a look at 3 celebrity bankruptcies who were very successful during their time but had to rebound from catastrophes or reversals of fortune; to go on and again achieve great success. It goes to show you that even people of immense talent have problems just like everyone else. Our 3 […]

  • Bankruptcy of John Connally

    Today our featured celebrity that declared bankruptcy is John Connolly. John Connally is certainly an Irish name. We might think of John Connolly the Irish author, who wrote about a former police office who became a detective hunting for the killers of wife and daughter. You may think of His Excellency, John Connolly the Second […]

  • Suggestions for Reaffirmation In Bankruptcy

    Chapter 7 debtors, if they end up passing the means test, can discharge all of their unsecured debts. Secured assets are normally sold by the Trustee in Bankruptcy or the creditor with the security interest acquires the property. Chapter 13 is a possible option for debtors with a lot of secured property who want to […]

  • Can I Avoid Liens In Bankruptcy?

    Today we’re going to talk about NPMSI. NPMSI stands for “Non-purchase money security interest loans” and occur when a borrower already owns property that is used as collateral for a loan. For instance, as a borrower, you may take a loan from a finance company and use household goods and/or jewelry for example, as collateral […]

  • Learn About Bankruptcy, Divorce And Marriage

    When a debtor files a bankruptcy he or she usually files in his or her own name. Still, the bankruptcy can affect many other family members. Often times, the reverse can also be true. It’s no surprise that a divorce can lead to the need for filing bankruptcy. Generally speaking, it’s easier for couples to pay […]

  • Bankruptcy And Real Estate – Will You Lose Your Home?

    The biggest assets most people have is their home. The fear of losing a home is one of the things that makes bankruptcy so traumatic. Before the bankruptcy filing, there are the constant calls from creditors, attempts by creditors to get judgments or liens against the property, and for many in the past decade the […]

  • Read The Top 10 Reasons When Declaring Bankruptcy Is A Good Choice

    The nature of being declared as having too much debt to creditors and other investors is a major reason for being declared bankrupt whether as an individual or company. Bankruptcy statistics indicate that at least 10 percent of the population in each county in Connecticut filed for bankruptcy petition in the year of 2014. Is […]

  • Useful Information About Bankruptcy And Short Sales

    These days many homeowners find that their home is worth less than the amount of their mortgage. A tragedy yes, but this is largely due to the fact the most homes lost their economic value due to the 2008 recession. Because the homeowner’s judgments and liens are worth more than the value of the house, […]

  • Student Loans in Bankruptcy at Mount Suribachi, Iwo Jima

    Students are desperate to find a remedy for their student loan problems. It’s near impossible to obtain a discharge of a student loan in Bankruptcy Court due to the ‘Brunner Test’. Passing the ‘Brunner Test’ in order to prove a hardship is more difficult than the Marines raising the flag at Mount Suribachi during the […]

  • How Do I Find Out Who I Owe Money To

    This is a good question, and it’s one that needs to be answered and resolved when it comes to declaring bankruptcy. There are many tips on this page that one can use to help find their creditors even if they live out of state. For starters, if you don’t know whom you owe money to, […]

  • Some Of The Top Reasons People File Bankruptcy

    What are the top reasons that people file for bankruptcy? Divorce, car accidents, losing a job, under employment, gambling and shopping addictions, shipping bills and mismanagement of credit cards are all some of the top causes for filing bankruptcy. Most people know, but do not believe we are all a bubble away from a health […]

  • A Fresh Start – Improving Your Credit Score After Bankruptcy

    Most attorneys are taught in law school that if someone files for bankruptcy protection, they can achieve a fresh start, and therefore so many of the ads we see by attorneys will state just that “file bankruptcy for a fresh start” but after many years of practice I have found that this statement is only […]

  • What Exactly Is Bankruptcy?

    Historically bankruptcy is found in the bible, in chapter 15, in the book of Deuteronomy. Is says that at the end of every 7 year period, “you shall have relaxation of debts, which should be observed as follows:” every creditor shall relax his claim on what he has loaned his neighbor he must not press […]

  • Double Standards In Bankruptcies

    DOUBLE STANDARDS IN BANKRUPTCIES was the headline which was recently published my the New York Times as an Editorial , April, 2014. The Editorial Board pointed out that the bankruptcy of the City of Detroit in Chapter 9 exposed this double standard. The pensioners payments from the City of Detroit are guaranteed under the Michigan Constitution, […]

  • Home Loan Servicers Must Cooperate With Homeowners

    Fortunately, new foreclosure rules mandate that home loan servicers must cooperate with homeowners to seek loss mitigation options before foreclosing on your home. Why? For many Americans, a small financial hiccup can cause big trouble and a few missed mortgage payments can spell disaster. To take advantage of this “forced” cooperation, you must understand the process […]

  • What Is A Chapter 13 Co-Debtor Stay?

    When a debtor files a bankruptcy case, the automatic stay is triggered. The automatic stay is a temporary court injunction that stops collection actions against a debtor. The automatic stay is invoked immediately upon filing the case by the federal Bankruptcy Code – no hearing is necessary and no judge’s signature is required. The automatic […]

  • Pros And Cons Of Reaffirming A Vehicle Loan During Bankruptcy

    ONCE UPON A TIME, many bankruptcy debtors lived in a land of golden sunshine. In that land, at that time, Chapter 7 debtors were not obligated to reaffirm a secured loan in order to keep a vehicle. The debtor’s personal liability was washed away by the Chapter 7 discharge, and only the lien against the […]

  • Chapter 7 Bankruptcy Discharge Eligibility

    Just mentioning Section 727 of the Bankruptcy Code makes debtor attorneys cringe and bankruptcy trustees puff out their chests. This section deals with the discharge in a Chapter 7 case and is referred to when discussing a “total denial of discharge.” Very scary stuff. Section 727 is simply entitled “Discharge,” and its provisions only apply […]

  • Help With Choosing Exemptions In Bankruptcy

    Exemptions play a large part in bankruptcy and knowing what they are and how they work is important to your case. Although your attorney takes care of working out this part of your case, it’s with your help that you get the protection you need. Exemptions play a part in other legal areas but today […]

  • Properly Selling Property Before Filing Bankruptcy

    Anyone going through bankruptcy would like sound advice on dealing with the sale and proceeds of property they own. Read on to find information on how to properly handle the sale of your property and help your bankruptcy case move along smoothly. Let’s start with your non-exempt equity Non-exempt equity in a Chapter 7 bankruptcy […]

  • Can You Get A Discharge For A Drunk Driving Debt?

    Have you been ordered to pay restitution for a debt that was the result of drunk driving and want to know if the debt can be discharged in bankruptcy? The answer to your question in this regard isn’t an easy one. This article looks at some sections of the Bankruptcy Code that pose stumbling blocks to […]

  • Beware the IDES of Student Loans

    Recently The Day ran a column on the front page about student loans. The journalist, Natalie Kitroeff, wrote for the New York Times, “Aggressive action of agency that monitors student loans faces scrutiny’. In the article Natalie introduced us to Stacy Jorgensen who had pancreatic cancer and couldn’t have her student loans discharged in bankruptcy […]

  • Can Bankruptcy Can Stop A Wage Garnishment?

    One of the most common economic events that will push a person into filing bankruptcy is a wage garnishment. An individual’s financial situation is often in some sort of disarray by the time he or she meets with an attorney and decides to file bankruptcy. By then the bankruptcy case may contain a repossession, foreclosure […]

  • Can I Go to Jail for Not Paying My Debts or Child Support?

    No reasonable person wants to go to jail, especially for failing to pay debts or child support but the fact is it can happen, and it can be avoided too. The great Victorian writer Charles Dickens wrote extensively on the grim social iniquities of his time. Meet the Debtor’s Prison Thankfully the debtor’s prison doesn’t […]

  • The New Bankruptcy Reform Act: The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCAP)

    The New Year is fast approaching and It’s time for a review or retrospective of the new Bankruptcy Code which was enacted in 2005. The official title to the New Code is: “Bankruptcy Abuse Prevention and Consumer Protection Act” or ‘BAPCPA’ for those who are familiar with the term. Let’s start at the beginning. This […]

  • How And Can I Keep My Home in Bankruptcy?

    There are a lot of questions surrounding what will happen to your home when going through bankruptcy and the following information will give you plenty of the clarification you’re looking for. Our home is generally one of our greatest assets, and a home is certainly not something you want to give up because you’re having […]

  • Do You Need A Bankruptcy Attorney In Waterbury To Fend Off Creditors?

    The Law Office of Dave Falvey is in Groton on 1 Crouch St. but we extend our bankruptcy services to Waterbury residents as well. Attorney Dave Falvey is a long standing force in the Connecticut bankruptcy courts with over 25 years experience in bringing bankruptcy cases to a happy ending. Although our office is a […]

  • What Is The Good Faith Requirement in Chapter 13 Bankruptcy?

    When it comes to bankruptcy, it’s important to take an honest approach and prove to the courts that you’re acting in good faith. A recent example of how good faith comes into play is when pensioners and other creditors challenged the City of Detroit’s eligibility to file a Chapter 9 bankruptcy case and reorganize its […]

  • What Happens To Property Received Within 180 Days of Filing Bankruptcy?

    What happens to property that you’ve received 180 days before filing bankruptcy? Property that you’re entitled to receive prior to a bankruptcy filing is property of the bankruptcy estate, even if the property does not actually come into your custody or control until a later date. An income tax refund is the most common example […]

  • Lien Stripping a Home Mortgage in Chapter 7 and 13 Bankruptcy

    When it comes to bankruptcy, many clients question whether you can get rid of a second mortgage. Well in some cases you can through lien stripping which removes the second mortgage lien on your home. Read on for more information. Section 506(a) of the Bankruptcy Code separates the debtor’s obligations into two general categories or […]

  • What Is a Chapter 7 Bankruptcy Statement of Intent

    Section 521 of the Bankruptcy Code requires a Chapter 7 bankruptcy debtor to file a “statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm […]

  • The Supreme Court’s Decision Guides Debtor Exemptions

    Lost Appreciation in Chapter 7 Bankruptcy In the United States Supreme Court case of Schwab v. Reilly, 130 S. Ct. 2652 (2010), the Court turned the bankruptcy world’s understanding of debtor exemptions on its head. The Court held that when a debtor ascribes a dollar value to property of the bankruptcy estate and claims an […]

  • Learn About Consumer Versus Non-Consumer Debts in Bankruptcy

    When filing for bankruptcy, it’s important to understand the difference between a consumer and non-consumer debt. Having this information in order will help you be prepared for what to expect at your bankruptcy hearing. The classification of a debt as a consumer or a non-consumer debt can have a significant impact on an individual’s bankruptcy […]

  • Bankruptcy Exemptions And And How They Work

    Retaining property during bankruptcy is usually a matter of calculating equity in your property and applying legal exemptions. Equity is the difference between the amount you owe on the property and its fair market value. For instance, if you own a Ford vehicle worth $10,000, and you owe Ford Motor Credit $2,000, then you have […]

  • Before You Meet With Your Bankruptcy Attorney Read This

    Filing bankruptcy starts early, even before your initial meeting with a bankruptcy attorney. Whether you’re in Connecticut or any other state, the process begins with finding a good attorney, and continues during your first meeting with your counselor. By taking the time to find a good attorney and preparing for your initial meeting, you save […]

  • Do I Need To Sign A Reaffirmation Agreement?

    Bankruptcy is full of popular myths. One of them is that a debtor can pick and choose which debts to include in a Chapter 7 bankruptcy case. That is simply not the case. The bankruptcy court has jurisdiction over all of the debtor’s pre-bankruptcy debts but not all debts are part of the Chapter 7 […]

  • What Happens After Bankruptcy? Read This FAQ Now

    Finding out what happens after bankruptcy is just as important as knowing what to expect and what to be prepared for after you file bankruptcy. I also recently wrote an article for those who are in need of information related to the appellate process in bankruptcy and if that applies to your situation at this time, […]

  • Filing Bankruptcy During Foreclosure

    Do you live in the New London County area of Connecticut and are considering filing bankruptcy during a foreclosure? If so, read on and get informed. When It’s Time To Face Foreclosure Facing foreclosure is a very stressful time. Whether because of a temporary or on-going financial crisis, most homeowners work diligently to try and […]

  • Understanding The Bankruptcy Appellate Process

    After providing my services for so long, it is my duty to say that when it comes to bankruptcy, court judges are often called upon to render decisions when the debtor can’t agree with the trustee or a creditor. This is where a bankruptcy appeal will usually come into play. In some cases the issues […]

  • When Can I Stop Paying The Creditors?

    One common myth is that you can stop paying your bills after deciding to file bankruptcy. This is a gross generalization, and it likely springs from constructive legal advice from a seasoned attorney. You see, in a Chapter 7 bankruptcy case – an erase-your-debts-and-start-fresh bankruptcy – debtors are often advised to stop making payments on […]

  • What Is Bankruptcy Fraud?

    The bankruptcy system deals with fraud by relying on the honesty of the debtor, the attorney, the trustee, creditors, the judge and bankruptcy court clerks. The federal bankruptcy laws also require full and complete financial disclosures for the system to work properly. In order to deter abuse during the bankruptcy process, Congress has described debtor […]

  • Tenants by the Entirety Property In Bankruptcy

    When you file bankruptcy, you must describe the property that you own, its location, and its value. The debtor must also disclose how the debtor owns the property. There are many forms of ownership, including sole or individual ownership, joint ownership, joint tenancy with right of survivorship, community property, tenancy in common, title by contract, […]

  • Can I Keep My Car in a Chapter 13 Vehicle Cram-Down?

    One of the first questions a prospective client will as a bankruptcy attorney is, “Can I keep my car?” Reliable transportation to work, school, or to the grocery store is critical to financial recovery for most Americans. Fortunately, bankruptcy offers several options for keeping a vehicle used for personal use. One of the most beneficial […]

  • Voluntary Conversion from Chapter 13 to Chapter 7 Bankruptcy

    Occasionally a debtor experiences a substantial and continuing change of circumstances during a Chapter 13 bankruptcy case that makes if difficult, if not impossible to continue to make monthly payments. One option the debtor has is to convert the case from Chapter 13 to Chapter 7. The bankruptcy laws permit a Chapter 13 debtor to […]

  • Are Unemployment Benefits Included As Income in Bankruptcy?

    The short answer is yes, and the long answer is more complicated when it comes to filing for bankruptcy if you’re receiving unemployment insurance. While having spent many years helping my Connecticut clients through personal bankruptcy, I’ve found that unemployment is one of the most common reasons for filing choosing to file, second only to […]

  • In Need of A Norwich Bankruptcy Lawyer?

    These days, it makes more sense for people to use the resources available through the Internet to find a top lawyer in their area who will help them through bankruptcy even if they are a few cities away. You may be seeking advice or services related to Chapter 7, Chapter 13, debt relief or consolidation. […]

  • Five Things to Avoid Doing Before Declaring Bankruptcy

    Here is advice you don’t hear every day: it is never too early to start pre-bankruptcy planning! In fact, many wealthy people hire professionals to ensure that their personal assets are protected should it become necessary to file bankruptcy. It seems counter-intuitive for a millionaire to talk about bankruptcy, but the millionaire’s riches are a […]

  • Bankruptcy Lawyer In New London

    Practicing as a bankruptcy lawyer in Connecticut for over 30 years, I’ve had numerous clients from the New London area seeking my services. For a 100% free consultation, simply call 860-449-1510 to speak with Atty. Dave Falvey, a Martindale-Hubbell Preeminent Rated Attorney. The Law Office of Dave Falvey has received one of the highest possible […]

  • Why Chose Chapter 13 over a Chapter 7 Bankruptcy

    Having spent many years as a bankruptcy lawyer in CT, I’ve found that a lot of my clients cannot believe that they’ll probably have to file a Chapter 13 bankruptcy to save their home from foreclosure. What are the differences between chapter 13 and chapter 7? Read on to find out. The Differences With Chapter […]

  • COME ON DOWN AND FILE FOR BANKRUPTCY!

    BUT YOU BETTER HAVE ASSET PROTECTION Connecticut’s Bob’s Discount Furniture, which is famous for its free candy & cookies and also (notorious) for its idiosyncratic advertising had filed for Chapter 11 Bankruptcy back in June ’05. You might wonder how a company which filed for re-organization is thriving now – Only the Maine division of […]

  • Is Chapter 13 Obsolete?

    Bank of America, Citigroup, J.P. Morgan Chase, Wells Fargo—some of the nation’s largest lenders whose shady banking practices—“robo-signing,” liars loans, and so on—helped tank the housing market and send many millions into foreclosure—out of the goodness of their hearts are coming to the rescue to help beleaguered homeowners. Well, not really. These banking giants have […]

  • 240 Pair of Michael Jordan Sneakers During Bankruptcy

    Who among us has almost $7,000 to blow on athletic shoes? Warren Sapp, a top NFL defensive tackle who patrolled the gridiron trenches for over a decade, has the dough. Or at least he had. Sapp, a seven-timer Pro Bowler for the Tampa Bay Buccaneers, and currently a football analyst for the NFL Network, is […]

  • Chapter 12 is Chapter 13 on ‘Steroids’

    I had never done a Chapter 12 bankruptcy case until quite recently. Actually, I’m preparing my 3rd Chapter 12 as I write this. Like any CT bankruptcy lawyer, attorneys, I had never handled a Chapter 12 and that’s when a farmer or fisherman files for bankruptcy. Indeed, most consumer bankruptcy really don’t know about Chapter […]

  • Famous Presidents and CEOs Have Declared Bankruptcy

    Abraham Lincoln was one of our greatest famous presidents—winning the Civil War to keep the Union together and emancipating the slaves. But—he was a terrible businessman and declared bankruptcy. Lincoln tried many occupations as a young man, including buying a general store in New Salem, Illinois, in 1832. But his sales were dismal and the […]

  • Bankruptcy As A Business a Success Story

    Why has American gone from a forest or wilderness and in 200 years to the world’s superpower? ANSWER: We have had a dynamic economic where people can start again after an economic set-back. Without bankruptcy protection most of us might still be driving horse-and-buggies—or schlepping around on bicycles—while the wealthy one percent are motoring around […]

  • Celebrity Bankruptcy: Buddy Holly Story – Gary Busey

    How many other celebrities who have earned tens of millions of dollars from movies, have declared bankruptcy? The ranks are legion.Kim Bassinger, Burt Reynolds, Debbie Reynolds, MC Hammer, Meat Loaf, Latoya Jackson, Mickey Rooney, Gary Coleman, Tammy Wynette, Sherman Hemsley, Wayne Newton, Which begs the question from the 99% of us who are ordinary Joes […]

  • The Supremes: ‘You Keep Me Hanging On….’

    The Supremes: ‘You Keep Me Hanging On…..’ I called the US Supreme Court: The Supremes because they ‘keep me hanging on for justice’. Presently, there’s a consumer bankruptcy case before The Supremes and it’s In re Ransom. This case is very important to the little guy trying to get out of debt. Why? This case […]

  • Mortgage Foreclosure Scams

    Foreclosure Notice? Mortgage “Experts” to the Rescue! –But Beware of Greeks Bearing Gifts! The day you’ve been dreading: a foreclosure notice from your bank arrives in the mailbox. Your mortgage payments have been late—or not paid at all. You’re about to lose your home. Then you get a call from a “mortgage specialist,” claiming years […]

  • Response to New London Day Bankruptcy Article

    This is my letter in response to an article in The Day ‘Personal bankruptcies easing after dramatic increase in ’09’ by Lee Howard. Hi Lee Howard: I read your article regarding bankruptcy statistics. I respectfully disagree with the interpretation of the bankruptcy statistics presented. Let me first cite a little piece of bankruptcy history as […]