26 Mar Why Most Websites Get Connecticut Exemptions Wrong
Bankruptcy exemptions under the law are a complicated subject. Under the changes to the Bankruptcy Code in 2005, this subject has gotten even more complex. The first question to be answered is: Which law applies? There are so many choices: federal bankruptcy law vs. state law, state law vs. state law. Much is determined by where you have lived and when. Sure, Congress was trying to stop the ‘flight’ to states where the exemptions laws are generous. Another part of the Bankruptcy Myth. Like we all have that kind of money to pick up and move south.
But I digress…
States certify and regulate lawyers to guarantee that the lawyer knows the law of that state well. That is the purpose of the bar exam. But how is a lawyer to know the laws of another state and determine the effect of those laws on the client before him? Many times, the lawyer will have never stepped foot in that other state. Enter the internet.
So what are the laws in Connecticut dealing with exemptions? Under Connecticut law, the single biggest exemption is the homestead. This state did not recognize a homestead exemption until 1993 with the collapse of the local real estate market. Now, there is an exemption of $75,000.00 of equity per owner in that real estate provided the debt was incurred after October 1, 1993, the effective date of the law.
Other exemptions include retirement funds, $1,000 in a bank account, household goods, and $1,500 equity in a motor vehicle. There are other items and the Connecticut exemptions can be found in the Connecticut statutes at C.G.S. Â§52-362 or you can click here. Rather than check an unauthorized website, best to check the statutes themselves and use a qualfied lawyer to help you interpret those statutes. This network of Bankruptcy Lawyers serves as a resource for each other in consulting laws of those other states.