What Property Can You Keep in Bankruptcy: The Connecticut Exemptions
In Connecticut, bankruptcy filers have two sets of exemptions available to them, State of Connecticut and Federal. When you hear the word “exempt”, think of the word “protect”. You are literally protecting your assets as you travel through bankruptcy. From whom are you protecting them from? The bankruptcy trustee. The trustee’s job is to collect non-exempt assets, sell them, and give the proceeds to creditors. They are not mean, just doing their job. Any assets that fall into the categories listed below are protected from the bankruptcy trustee.
It is important to note that married people filing together must choose the same set of exemptions.
This is intended to give a general overview of the exemption laws. Choosing a set of exemptions and invoking them properly can be complicated. I recommend that you seek the advice of an experience Connecticut bankruptcy lawyer prior to filing a bankruptcy case so that you can be sure that your assets are protected.
I have listed the Connecticut Exemptions below:
Conn. Gen. Stat.§52-352b:
(a) Necessary apparel, bedding, foodstuffs, household furniture and appliances;
(b) Tools, books, instruments, farm animals and livestock feed, which are necessary to the exemptioner in the course of his or her occupation, profession or farming operation;
(c) Burial plot for the exemptioner and his or her immediate family;
(d) Public assistance payments and any wages earned by a public assistance recipient under an incentive earnings or similar program;
(e) Health and disability insurance payments;
(f) Health aids necessary to enable the exemptioner to work or to sustain health;
(g) Workers’ compensation, Social Security, veterans and unemployment benefits;
(h) Court-approved payments for child support;
(i) Arms and military equipment, uniforms or musical instruments owned by any member of the militia or armed forces of the United States;
(j) One motor vehicle to the value of three thousand five hundred dollars, provided value shall be determined as the fair market value of the motor vehicle less the amount of all liens and security interests which encumber it;
(k) Wedding and engagement rings;
(l) Residential utility deposits for one residence, and one residential security deposit;
(m) Any assets or interests of an exemptioner in, or payments received by the exemptioner from, a plan or arrangement described in section 52-321a;
(n) Alimony and support, other than child support, but only to the extent that wages are exempt from execution under section 52-361a;
(o) An award under a crime reparations act;
(p) All benefits allowed by any association of persons in this state towards the support of any of its members incapacitated by sickness or infirmity from attending to his usual business;
(q) All moneys due the exemptioner from any insurance company on any insurance policy issued on exempt property, to the same extent that the property was exempt;
(r) Any interest of the exemptioner in any property not to exceed in value one thousand dollars;
(s) Any interest of the exemptioner not to exceed in value four thousand dollars in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the exemptioner under which the insured is the exemptioner or an individual of whom the exemptioner is a dependent;
(t) The homestead of the exemptioner to the value of seventy-five thousand dollars, or, in the case of a money judgment arising out of services provided at a hospital, to the value of one hundred twenty-five thousand dollars, provided value shall be determined as the fair market value of the real property less the amount of any statutory or consensual lien which encumbers it; and
(u) Irrevocable transfers of money to an account held by a bona fide nonprofit debt adjuster licensed pursuant to sections 36a-655 to 36a-665, inclusive, for the benefit of creditors of the exemptioner.