Bankruptcy in Connecticut (2026): Exemptions & Means Test

Bankruptcy is a federal process, but the property you can protect and the income limits that shape Chapter 7 eligibility turn on state law. Connecticut is one of a minority of states that lets you choose between Connecticut's own exemptions and the federal bankruptcy exemptions, and its homestead protection is a fixed dollar amount rather than the unlimited equity seen in states like Florida or Texas.

This guide is part of our Bankruptcy by State series. It is general legal information, not legal advice, and the dollar figures below change periodically, so confirm current amounts before you rely on them.

Does Connecticut use state or federal bankruptcy exemptions?

Connecticut is one of the states that did not opt out of the federal exemption scheme. Under 11 U.S.C. 522(b), each state may force its residents to use state exemptions, but Connecticut instead lets a filer choose. You may claim either the Connecticut exemptions in Conn. Gen. Stat. 52-352b or the federal exemptions in 11 U.S.C. 522(d). You must choose one full set; you cannot combine the most generous parts of each.

Because of this choice, comparing the two systems is the central planning step for a Connecticut filer. The Connecticut homestead is larger than the federal homestead, while the federal set offers a sizable wildcard that can protect cash, accounts, or other property the state list does not reach. A spouse who co-owns property and files jointly may, in many cases, double exemption amounts.

To use Connecticut's exemptions, residency rules under 11 U.S.C. 522(b)(3) generally require that you have been domiciled in Connecticut for the 730 days before filing; otherwise an earlier state's exemptions may apply.

Connecticut homestead exemption

Connecticut protects the homestead of the filer up to $250,000 in equity, measured as fair market value minus any statutory or consensual lien (Conn. Gen. Stat. 52-352b(21)). The home can be owner-occupied real property, a co-op, or a mobile manufactured home. This figure replaced the long-standing $75,000 cap when Public Act 21-161 took effect on October 1, 2021, and Connecticut courts have read the expanded amount as applying to bankruptcy and post-judgment proceedings begun on or after that date.

Unlike a state such as Florida, Connecticut caps homestead protection at a dollar figure rather than allowing unlimited equity, and there is no acreage rule. If your equity exceeds the cap, the excess is not protected by this exemption.

Motor vehicle, wildcard, and personal property

Connecticut's statute exempts up to two motor vehicles worth $7,000 in the aggregate, with value figured as fair market value less liens (52-352b(10)). The wildcard exemption protects any interest in any property up to $1,000 (subdivision 18), which can be applied to assets that do not fit another category.

The state list also protects necessary apparel, bedding, foodstuffs, household furniture and appliances; tools, books, and instruments necessary to your occupation, profession, or farming; health aids; and a range of benefits including Social Security, veterans, unemployment, and workers' compensation. Wages are protected through the garnishment limits in Conn. Gen. Stat. 52-361a, which cap a weekly levy at the lesser of 25 percent of disposable earnings or the amount above 40 times the minimum wage.

The Chapter 7 means test in Connecticut

The means test screens who may file Chapter 7. The first step compares your household's average monthly income over the six months before filing, annualized, to the Connecticut median family income for your household size as published by the U.S. Trustee Program. If you are at or below the median, you generally pass. If you are above it, a second calculation of disposable income decides whether you can still file Chapter 7 or are steered toward Chapter 13.

For cases filed on or after April 1, 2026, the Connecticut median family income figures are:

• 1 earner: $84,302
• 2 people: $106,224
• 3 people: $134,470
• 4 people: $159,934

Add $11,100 for each household member beyond four. These figures are updated by the U.S. Trustee Program roughly twice a year, so confirm the current table for your filing date before relying on them.

Chapter 7 vs. Chapter 13 and the automatic stay

Chapter 7 is liquidation. A trustee may sell non-exempt property to pay creditors, and most remaining unsecured debt is discharged, usually within about four to six months. It suits filers with limited non-exempt assets and primarily unsecured debt.

Chapter 13 is reorganization. You keep your property and repay some or all of what you owe through a court-approved plan lasting three to five years, which can help homeowners cure a mortgage arrearage or filers whose income is too high for Chapter 7.

Filing either chapter triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection efforts, including foreclosure sales, wage garnishment, and collection calls, while the case proceeds.

Where you file in Connecticut

Connecticut is a single federal judicial district, so all cases go to the U.S. Bankruptcy Court for the District of Connecticut. The court maintains offices in Hartford, New Haven, and Bridgeport. Filers must complete a credit-counseling course from an approved provider before filing and a debtor-education course before discharge.

What bankruptcy can and cannot do

Most unsecured debts, such as credit cards, medical bills, and personal loans, are dischargeable. Several categories generally are not, including most student loans, recent income taxes, domestic-support obligations like child support and alimony, and debts from fraud. Because the choice between the Connecticut and federal exemption sets can change which assets you keep, and because the means-test figures shift, many filers consult a Connecticut bankruptcy attorney before deciding.