By February 12, 1873, all of the lawsuits against Halcyon had been settled.

The various suits pending in the courts of this county in favor of, and against Halcyon G. Bailey, have all been settled by agreement of the parties. All the real estate formerly owned by Bailey, and deeded a few years since a part to his wife, and a  part to one Joseph B. Close, in trust, has been re-deeded to Mr. Bailey, and a divorce was obtained by her from her husband last Tuesday, in Bridgeport. The custody of the child was given to Mrs. Bailey, and her name was changed to her maiden name, Emily Keeler.
---Danbury News-Times, February 12, 1873

Halcyon returned to Brooklyn to again work in the clothing industry.  He worked first with Smith, Gray & Co, then Carhart, Whitaker & Co, before becoming a partner in the firm Hutchings & Bailey, alongside Ebenezer Hutchings.

The disputed properties were returned to Halcyon on February 8, 1873. That same day he mortgaged his three properties to the Homestead, Bogus, and Sherwood farm the Savings Bank of Danbury. He also listed his properties for sale, but did not manage to sell them.

In May, just a month later, Halcyon borrowed $3000 from his new business partner, through a second mortgage against his three properties. 

Sources

• Business Growth of the ’Burgh. Hutchings & Bailey’s Great Clothing Warehouse, 53 and 55 Fourth Street.” In: Brooklyn Daily Times (June 18, 1873), p. 2.
• Town of Ridgefield, Connecticut, Ridgefield Land Records, pp. v26, 614.
• None Such. “Ridgebury [Festive Day at Peach Lake].” In: Bridgeport Standard (Sept. 7, 1876), p. 4.