Connecticut Bankruptcy Exemptions

If you are a Connecticut resident and the court has declared you bankrupt under chapter 7, you have the legal right to keep most of your assets and properties up to certain limit while the bankruptcy trustee appointed for your case will use the remaining proceeds to pay off your debts. The state laws allow you to choose either Connecticut bankruptcy exemptions or federal bankruptcy exemptions. If you choose to go with the state-specific exemptions, you will also be allowed to use certain federal supplemental exemptions.


You can use the wildcard exemptions in the state of Connecticut for any property; the maximum limit is $1000.


You can get the wages (earned but not paid) exempted for either up to 40 times federal or state minimum hourly wage or up to 75% of the weekly disposable income, whichever is higher.

Tools Of Trade

100% exemptions are allowed for the tools of trade used by military personnel, such as musical instruments, uniforms, military equipment, and arms. For others also, anything needed for trade are exemptible in full, such as farm animals, books, instruments, and tools.

Public Benefits

Connecticut bankruptcy exemptions allow you to keep 100% of certain types of public benefits that you might be receiving, such as Crime victim compensation, Workers’ compensation benefits, Veterans’ benefits, Social Security benefits, Public assistance, and Unemployment compensation benefits.

Personal Property

Certain types of personal properties that are exemptible in full include transfers to nonprofit debt adjuster, recovery for damaged exempt property, utility and security deposits for residence, engagement and wedding rings, Health aids, and Burial plot. You can also keep all your bedding, appliances, furniture, food, and clothing. If you are receiving any Spendthrift trust funds, it is also exemptible up to a value that is needed to support the debtor and his/her family. The motor vehicles however can be exempted only up to a maximum value of $1500. If you have less than $1500 of equity on motor vehicles, you will be paid in cash. However, you still have an option to save your vehicle by committing to continue making the monthly payments toward auto loans. But, even in that case, certain factors are taken into consideration and it is entirely up to the court to have a final decision about it.


100% Connecticut bankruptcy exemptions are allowed for certain types of pensions, such as medical savings accounts, teacher pensions, municipal employee pensions, state employee pensions, and federal pension exemption. ERISA-qualified benefits, including Keoghs, Roth IRAs, and IRAs are exemptible up to maximum limit allowed for wages.


All properties (animals and feed) of farm partnership that are “reasonably” needed to successfully operate a farm are exempted in full. It is entirely up to the bankruptcy trustee to decide what is “reasonable”. However, you can take advantage of such exemptions only if fifty percent of the partners are members of the same family. If you are receiving alimony payments and if that is the only source of income for you, you can get the same exempted (the maximum limit applicable for wages will apply). Child support payments however are exemptible in full without any condition.


Connecticut bankruptcy exemptions allow you to keep 100% of disability and health benefits, fraternal society benefits, and life insurance proceeds/avails. The avails from a life insurance policy that is not matured can also be exempted up to a maximum value of $4000, but certain conditions apply; the beneficiary must be either the debtor him/her self or someone he/she is dependent on.


A maximum exemption of $75000 is allowed for homestead properties that include manufactured or mobile homes or any real property.

Overall, Connecticut bankruptcy exemptions have been designed in such a way that allows you to maintain enough assets, properties, insurance, public benefits, and wages and income to give your finances a fresh start even after getting bankrupt under chapter 7 of the bankruptcy code.

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One Response to “Connecticut Bankruptcy Exemptions”

  1. Macc says:

    Any individual living in Connecticut and is going to be declared as Bankrupt under chapter 7, he/ she can have most of his / her assets with them. Connecticut state laws are very clearly allows its residents to choose between federal bankruptcy exemptions and state specific exemptions with the state specific exemptions. The state authorities provide you many exemptions under different categories, the tools used in different trades are fully exempted. Unemployment compensation benefits and other benefits like crime victims compensation etc are also 100 % exempted. Some specific personal property is also exempted by the state govt. Pensioners can also get full exemptions like medical accounts, state employee pensions etc. Any miscellaneous activities can get exempted which is going to affect the living like farm house, fishing etc. If you are taking any insurance benefits on the grounds of medical and health it can be fully exempted. You can use a wild card option also for saving your property worth a specific limit. Earned wages can also be exempted for a certain limit. Homestead option is also very beneficial for the exemption of property. Connecticut state authorities give its residents a chance to restart their life after the traumatic phase of bankruptcy. Here one can start his / her5 new life after being a bankrupt a little bit more easily as compared to other places.

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