Connecticut Bankruptcy Exemption Provisions
All states are permitted an option of allowing residents to choose the Federal bankruptcy exemptions promulgated pursuant to Section 522 of the Code, or alternatively, creating exclusive state bankruptcy exemptions. Connecticut is an op-in state, that permits state residents to choose either state or federal statutes. Most states allow only state exemptions. The effect of opting-in creates opportunities for all state residents under the Connecticut bankruptcy exemptions, because of the relatively high homestead bankruptcy exemption value under state law.
Maximizing the Connecticut homestead exemption
According to the Property Code of Connecticut, Section 52-352, the maximum value that may be claimed as exempt is $75,000. This value however is hotly debated, because of the wide range of real estate appraisal methods. Equity value, remaining after liquidation, is the proper method of calculation. Moreover, the trustee's liquidation value is subject further reduction because of attorney fees and costs attendant to seizure, accounting, distribution, and reporting requirements under the Code. Merely because a comparable home is advertised near market top, the actual value of a home liquidated by a trustee is much lower.
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