Connecticut Bankruptcy Laws

Federal filing fees apply. Fee waivers or installment plans may be available for debtors who qualify based on income.

Debtors must complete credit counseling from an approved agency within 180 days before filing. A debtor education course is required before discharge.

Chapter 7 filers must pass the means test based on Connecticut median income levels. If income exceeds the median, the test evaluates allowable expenses to determine eligibility.

Protects up to $250,000 in equity in the debtor's primary residence. Equity is defined as fair market value minus mortgages, liens, and statutory liens (such as property taxes). The exemption was significantly increased from $75,000 to $250,000 effective October 1, 2021 (P.A. 21-161).

Up to two motor vehicles are exempt to the value of $7,000 in the aggregate. Value is determined as fair market value less the amount of all liens and security interests encumbering the vehicles.

Key exemptions include: necessary apparel, bedding, food, household furniture, and appliances (subsection (a)); tools, books, and instruments necessary for occupation up to $2,525 (subsection (b)); wedding and engagement rings (subsection (k)); health aids (subsection (l)).

A wildcard exemption of $1,000 may be applied to any type of property not otherwise exempt. This provides flexibility to protect additional assets that do not fit neatly into other exemption categories.

Connecticut has NOT opted out of the federal bankruptcy exemption scheme. Debtors may choose either Connecticut state exemptions or the federal exemptions under 11 U.S.C. § 522(d), but must use one set entirely — they cannot mix and match. This is a significant advantage, as debtors can select whichever set is more favorable to their situation.