Connecticut Bankruptcy Laws

Connecticut has one bankruptcy court, the Connecticut Bankruptcy District Court that has three locations: Bridgeport , Hartford and New Haven . It serves the entire state of Connecticut . Most people in Connecticut file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK.

Connecticut Bankruptcy Exceptions
xempt property is property that you are allowed to keep in a chapter 7 bankruptcy. State law determines what property is exempt. According to Lawyers.com, you can choose one of two "exemption schemes" in Connecticut : federal bankruptcy laws or Connecticut state.

Under federal bankruptcy laws, you may keep:

• Your home, including co-op or mobile home, to $18,4520.
• Life insurance payments for person you depended on, needed for support.
• Life insurance policy with loan value, in accrued dividends or interest to $10,775.
• Unmatured life insurance contract, except credit insurance policy.
• Alimony, child support needed for support.
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support.
• $525 per item in any household goods up to a total of $10,775.
• Health Aids.
• Jewelry to $1,350.
• Lost earnings payments.
• Your motor vehicle to $3,225.
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits.
• Tools of trade up to $2,025.
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption.

Married couples may double the amount of the federal exemptions.

Under Connecticut bankruptcy laws, you may keep:

• Homestead, up to $75,000.
• Appliances, food, clothing, furniture and bedding.
• Burial plot.
• Health aids necessary for work.
• Motor vehicle to $1,500.
• Residential utility and security deposits.
• Wedding and engagement rings.
• Workers' compensation, Social Security, veterans and unemployment benefits.
• Health and disability insurance payments.
• Public assistance payments.
• Life insurance proceeds.
• ERISA-qualified benefits.
• Alimony and support.
• Court approved payments for child support.
• Property of business partnership.
• Arms, military equipment, uniforms and musical instruments of military personnel.
• Tools, books, instruments, farm animals and livestock feed necessary to work.
• 75% of earned but unpaid wages.
$1,000 of any property

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.