Connecticut law allows a debtor to keep his or her home if the debtor can continue to make his or her mortgage payments. As in most bankruptcies in most states, a homeowner has a better chance of keeping his or her home in a Chapter 13 bankruptcy proceeding if the homeowner does not have significantly more equity in the property than that which is allowed by the state homestead exemption law.
Like other states, Connecticut has set its own homestead exemption. The amount of the exemption is $75,000. That means that the first $75,000 of equity in a person’s primary residence is exempt from recovery by unsecured creditors in a bankruptcy proceeding.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.