Connecticut Bankruptcy Exemptions: What You Get to Keep

Connecticut is one of the more generous states for people who file bankruptcy, and the headline reason is its homestead exemption: under Connecticut General Statutes section 52-352b, you can protect up to $250,000 of equity in the home you own and occupy as a primary residence. That figure was raised from $75,000 effective October 1, 2021, and it makes Connecticut far more protective than the federal homestead amount. Equally important, Connecticut has not opted out of the federal bankruptcy exemption system, so a Connecticut filer may choose either the Connecticut state exemptions or the federal exemptions in 11 U.S.C. section 522(d) — but not a mix of both. That choice is the single most consequential decision in many Connecticut consumer bankruptcies, and it turns on what kind of property you most need to protect.

Connecticut's exemption scheme at a glance

An exemption is the legal mechanism that lets you keep property out of the reach of the bankruptcy trustee (in Chapter 7) or that sets the floor for what unsecured creditors must be paid (in Chapter 13). Property you can fully exempt is yours to keep. The core Connecticut exemptions live in Conn. Gen. Stat. section 52-352b, and the most important ones for everyday consumers are:

• Homestead: up to $250,000 of equity in an owner-occupied primary residence (52-352b(t)). This is equity, not the home's total value — a mortgage reduces your equity dollar for dollar.
• Motor vehicle: up to $3,500 of equity in one motor vehicle (52-352b(j)).
• Wildcard: up to $1,000 in any property of your choosing (52-352b(r)). This can be stacked on top of other exemptions to cover, for example, extra car equity, a tax refund, or cash.
• Necessary household goods: apparel, bedding, foodstuffs, household furniture, and appliances reasonably necessary for you and your family (52-352b(a)).
• Tools of the trade: tools, books, instruments, and farm animals necessary to your occupation, profession, or farming operation (52-352b(b)).
• Wedding and engagement rings (52-352b(o)) and any health aids you need (52-352b(f)).
• A burial plot (52-352b(c)) and residential utility and security deposits for one residence (52-352b(l), (m)).

Wages, benefits, and retirement money

Connecticut protects ongoing income and many public and retirement benefits. Exempt categories under section 52-352b include public assistance, Social Security, unemployment compensation, workers' compensation, veterans' benefits, alimony and child support, and health or disability insurance proceeds. Most pension and retirement plans are exempt as well, and tax-qualified retirement accounts (such as 401(k)s, ERISA plans, and IRAs) generally receive broad protection in bankruptcy regardless of which exemption set you choose.

For wages, Connecticut limits how much a creditor can garnish, and it is more protective than the federal baseline. The federal Consumer Credit Protection Act caps wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. Connecticut uses its own, higher minimum wage and a 40-times multiplier: the exempt amount is the greater of 75% of disposable earnings or 40 times the Connecticut minimum hourly wage. Because Connecticut's minimum wage is indexed and rises each January 1, the exact dollar protection changes annually. As of 2026 the Connecticut minimum wage is roughly $16 per hour, but you should confirm the current figure with the Connecticut Department of Labor before relying on a specific number — do not assume an outdated rate.

State exemptions vs. the federal set

Because Connecticut lets you pick, it pays to compare. The federal exemptions in 11 U.S.C. section 522(d) are adjusted for inflation every three years (most recently on April 1, 2025), so verify the current amounts before filing. Roughly speaking, the federal set offers a smaller homestead (in the low-$30,000s) but a generous, transferable wildcard: a base wildcard plus a large portion of any unused homestead exemption that can be applied to any property. The federal vehicle exemption is also somewhat higher than Connecticut's $3,500.

The practical rule of thumb: if you own a home with significant equity, Connecticut's $250,000 homestead almost always wins. If you rent or have little home equity, the federal system's stackable wildcard often protects more cash, vehicle equity, and miscellaneous property. You must choose one system for all of your property — you cannot take Connecticut's homestead and then also claim the federal wildcard.

Important limits and exceptions

Exemptions are powerful but not unlimited:

• Equity, not value: Every exemption protects your equity. If your car is worth $9,000 but you owe $7,000 on the loan, your equity is $2,000 — comfortably within the $3,500 vehicle exemption.
• Liens survive: A valid mortgage or car loan is not erased by an exemption. If you want to keep collateral, you generally must keep paying the secured debt.
• Married couples can double: When spouses file jointly, each spouse may claim a full set of exemptions on jointly owned property, effectively doubling many Connecticut amounts.
• The 730-day domicile rule: Federal bankruptcy law (522(b)(3)) requires you to have lived in Connecticut for at least 730 days before filing to use Connecticut's exemptions; otherwise the prior state's exemptions may apply.
• The 1,215-day homestead cap: Under 522(p), homestead equity acquired within roughly 1,215 days before filing can be capped at a federal limit (in the mid-$100,000s, adjusted periodically), which can blunt Connecticut's large homestead for very recent purchases.
• Some debts ignore exemptions: Exemptions protect property from general creditors and the trustee, but certain obligations — domestic support, many tax liens, and consensual liens — are treated differently.

How to claim and enforce your exemptions

In a bankruptcy case, you list exempt property on Schedule C of your federal petition, citing the specific statute (a Connecticut subsection of 52-352b or a federal 522(d) paragraph). The trustee or a creditor then has a limited window after the meeting of creditors to object; if no valid objection is filed, the exemption stands. Outside of bankruptcy, the same Connecticut exemptions can shield property from a judgment creditor's execution, and you can assert them through the Connecticut Judicial Branch's exemption-claim process when a creditor tries to levy on wages or a bank account.

Because choosing the wrong exemption set or miscalculating equity can cost you property you could have kept, this is an area where reviewing the actual statute — and often consulting a Connecticut bankruptcy attorney or a nonprofit legal-aid clinic — is well worth it.

Where to verify Connecticut's rules

Confirm current figures and procedures with primary sources rather than secondhand summaries. Read Conn. Gen. Stat. section 52-352b directly through the Connecticut General Assembly's website, and check wage and minimum-wage figures with the Connecticut Department of Labor. The Office of the Connecticut Attorney General handles consumer-protection matters and publishes guidance for residents dealing with debt and creditors, and the Connecticut Department of Consumer Protection regulates debt-related businesses. For exemption forms and court procedures, use the Connecticut Judicial Branch's self-help resources. Federal exemption amounts and the bankruptcy process are governed by the U.S. Bankruptcy Code and administered through the U.S. Bankruptcy Court for the District of Connecticut.

Statutory amounts change — Connecticut's homestead jumped more than threefold in 2021, and the federal numbers move every three years — so always confirm the figure that applies on your filing date.

Official Connecticut Sources

This page is based on Connecticut law. Limits and deadlines change — verify the current details directly with the official Connecticut sources below. This is general legal information, not legal advice.

• Office of the Attorney General – Consumer Protection Section — official Connecticut agency.
• File a Complaint – Connecticut Attorney General
• Connecticut General Statutes Chapter 735a – Unfair Trade Practices (CUTPA, incl. § 42-110b)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Connecticut’s own rules.