Welcome to the bankruptcy blog for Action Advocacy, PC. Here you will find various articles related to bankruptcy in general and information specifically related to the bankruptcy laws in Connecticut. You’ll find information about bankruptcy at the State and Federal level and news about student loans issues, the different chapters of bankruptcy, changes to the bankruptcy laws, and useful information about alternatives to bankruptcy.

Woman going over debts

History Of Bankruptcy — Debt Cancelation For The First 5,000 Years

I am developing an outline for a paper I intend to write on the History of Bankruptcy which is really ‘Debt Cancelation- A short paper on how Western Culture has dealt with debt.” First, a ‘war story.’  A husband and wife came for a consultation about their debts. She was paying the bills and was […]

New Connecticut exemptions

Current Information About Homestead Exemption Laws in Connecticut

May you be born during interesting times! The above is a famous Chinese curse and it could mean that Connecticut actually does not have a homestead exemption in bankruptcy at this time. Why is this important? Chapter 7 Bankruptcy is really called a ‘liquidation’ of debts and assets! I have told clients who believe that […]


Can You File Bankruptcy On A New Debt?

The answer to this question depends in large part on when you obtain the new debt. Generally, it is not advisable to acquire new debt after you file your Chapter 7 or Chapter 13 bankruptcy petition – but before you are formally discharged. There are practical and legal reasons for this. As a practical matter, you […]

What Is The Minimum Debt To File Bankruptcy?

There isn’t a minimum amount of debt you need in order to file a Chapter 7 or a Chapter 13 bankruptcy. If you owe as low as $1, you can still file for bankruptcy. There are, however, many practical reasons why you should seek other alternatives than filing bankruptcy unless your debts are too high. […]

Can I Stop Paying Creditors During The COVID Pandemic?

The information in this document will help you understand whether you still have to pay your debts during the COVID-19 pandemic. The COVID-19 pandemic is devastating the country. Over 320,000 people in the United States have died due to the pandemic. A majority of workers, especially workers who can’t work from home, are suffering financially. […]

Does Bankruptcy Remove Your Child Support Debt

The short answer to this question is no. You generally cannot discharge your duty to pay child support even if you file bankruptcy. Child support is considered a priority non-dischargeable debt. You may be able to buy yourself some time to pay the arrears, provided you make the future child support payments on time. Bankruptcy […]

The Effects of Declaring Bankruptcy On A Divorce Case

The effects that declaring bankruptcy can have on a divorce case can be complicated but its not as complicated as you would think it is. Divorces happen for many reasons; one of the reasons is when a couple can’t pay their bills. Even when they can pay their bills while living together, they quickly find […]

Bankruptcy and divorce information

Top 10 Important Facts About Bankruptcy and Divorce

If you’re going through a divorce and are considering bankruptcy, these 10 important facts about bankruptcy and divorce are a must read. Spouses and parents going through a divorce and bankruptcy, often need to consult with both a bankruptcy lawyer and a family lawyer at the same time. Divorce and bankruptcy are both emotionally draining experiences. […]

Paying Alimony And Child Support Payments After A Bankruptcy

One of the biggest challenges of a divorce is having to pay child support or marital alimony. If you’ve found that your payments are too high or that you cannot afford the essentials of living, it would make sense that you would consider declaring bankruptcy. Discharging Support Payments in Chapter 7 and Chapter 13 The […]

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 […]

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 […]

The History of 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 Bankruptcy

Double Standards in Bankruptcy 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, yet […]

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 […]

New Bankruptcy Reform Act: Bankruptcy Abuse Prevention and Consumer Protection Act

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 […]

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 […]

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 […]

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’

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 12. Very few can tell you what it does but I’m in Connecticut and there are very, very few Chapter 12’s.I spent many, […]

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 […]