How Does Bankruptcy Affect Your Home in Connecticut?

Q & A with Attorney Gregg Wagmann

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Can you File For Bankruptcy in Connecticut and Keep Your Home? Quick Answer to questions like:

Can you file for bankruptcy and keep your home in Connecticut?

Yes—many homeowners can keep their home when filing bankruptcy in Connecticut, depending on equity, exemptions, and the type of bankruptcy filed (Chapter 7 vs Chapter 13).Yes, you can file for bankruptcy in Connecticut and keep your home if:

• Your home equity is within the exemption limits

• You stay current on your mortgage (or catch up through a plan)

• You choose the right type of bankruptcy (Chapter 7 or Chapter 13)

  
  

How Does Bankruptcy Affect Your Home in

Connecticut? Quick Answers for Questions like:

Can I keep my house in Chapter 7 in Connecticut?

Filing for bankruptcy does not automatically mean losing your house. Connecticut law provides strong protections for homeowners, especially through the homestead exemption.

Your ability to keep your home depends on:

• The amount of equity you have

• Whether you are current on mortgage payments

• The type of bankruptcy you file

  
  

What Is the Connecticut Homestead Exemption?

The Connecticut homestead exemption protects the equity in your primary residence during bankruptcy.

Key Facts:

• $250,000 protection per person

• Up to $500,000 for a home jointly owned by married couples filing jointly

• Applies only to your primary residence

  
  

What happens if I have too much equity in my home when filing for bankruptcy?

How Equity Is Calculated:

Home Value – Mortgage Balance = Equity

If your equity is below the exemption limit, a bankruptcy trustee typically cannot sell your home to pay unsecured debts.

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Should You File Chapter 7 or Chapter 13 to Keep Your Home?

Chapter 7 Bankruptcy (Best for Current Homeowners)

You may qualify if:

• You are current on your mortgage

• Your equity is within the exemption limits

  
  

How it helps:

• Eliminates unsecured debts quickly

• Allows you to keep your home if payments continue

Important: You must continue making mortgage payments. Bankruptcy removes your personal liability—but not the lender’s lien.

Chapter 13 Bankruptcy (Best if You’re Behind on Payments)

You may benefit if:

• You are facing foreclosure

• You have missed mortgage payments

  
  

How it helps:

• Stops foreclosure proceedings

• Allows you to repay missed payments over 3–5 years

• Let's you keep your home while catching up

Requirement: You must have a steady income to cover:

• Current mortgage payments

• Repayment plan obligations

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What Are the Requirements to Keep Your Home in Bankruptcy?

To retain your home, you must:

Continue Mortgage Payments

Even after filing, your lender can foreclose if payments are not made.

Use the Homestead Exemption Properly

Your equity must fall within Connecticut’s exemption limits.

Live in the Property

The home must be your primary residence.

Choose the Right Exemption System

Connecticut allows you to choose between:

• State exemptions (more favorable for homeowners)

• Federal exemptions (approximately $27,900 for a residence)

You must choose one system—you cannot combine them.

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Can Bankruptcy Stop Foreclosure in Connecticut?

Yes. Filing for bankruptcy can immediately stop foreclosure through an automatic stay.

• Chapter 7: Temporarily pauses foreclosure

• Chapter 13: Provides a long-term solution by allowing repayment of missed payments

Frequently Asked Questions

Can I keep my house if I’m behind on payments?

Yes, Chapter 13 bankruptcy allows you to catch up on missed payments over time.

Will I lose my home in Chapter 7?

Not if your equity is protected and you stay current on your mortgage.

What happens if my equity exceeds the exemption?

A trustee may sell your home to pay creditors, but legal strategies may still help protect it.

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Bottom Line

You can keep your home after filing for bankruptcy in Connecticut—but success depends on proper planning and choosing the right approach.

Working with an experienced bankruptcy attorney like Gregg Wagman ensures you:

• Maximize available protections

• Choose the correct filing strategy

• Protect your home and financial future

  
  

Need Help Protecting Your Home?

If you are considering bankruptcy and want to keep your home, it’s critical to act early. The right legal guidance can make the difference between foreclosure and a fresh financial start.

Contact Attorney Gregg Wagman today to explore your options and protect what matters most.