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How Does Bankruptcy Affect Your Home in Connecticut?
- 5 hours ago
- 3 min read
Q & A with Attorney Gregg Wagmann
Can you File For Bankruptcy in Connecticut and Keep Your Home? Quick Answer:
Yes, you can file for bankruptcy in Connecticut and keep your home if:
Your home equity is within 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?
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 married couples filing jointly
Applies only to your primary residence
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.
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 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
Lets you keep your home while catching up
Requirement: You must have steady income to cover:
Current mortgage payments
Repayment plan obligations
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.
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.
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.
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