Connecticut’s $250,000 homestead exemption keeps the liquidation test floor manageable for most homeowners in Chapter 13 — but the state’s small $1,000 wildcard means filers without much home equity may find the federal exemptions leave less exposed to their plan’s minimum payment. That choice matters more in Connecticut than in many states, given how much the two systems diverge on the wildcard question.
How Chapter 13 Works in Connecticut
You file a petition and propose a repayment plan lasting three to five years. A standing Chapter 13 trustee collects your monthly payment and distributes it — secured debts first, then priority claims, then whatever’s left goes to unsecured creditors. You keep all your property throughout, and remaining qualifying unsecured debt is discharged when the plan completes.
The exemptions you claim set your plan’s liquidation test floor — the minimum unsecured creditors must receive.
Should You Use Connecticut or Federal Exemptions in Chapter 13?
Connecticut lets filers choose between its own exemption list and the federal exemptions, whichever protects more - you can't combine the two. Connecticut’s homestead exemption protects $250,000 in home equity. Homeowners with meaningful equity generally do better under Connecticut’s own homestead. Renters or filers with less home equity often do better under the federal system, since Connecticut’s own wildcard ($1,000 for any property.) is small compared to the federal alternative.
Why Connecticut Filers End Up in Chapter 13
Mortgage arrears are the most common driver — catching up on missed payments without losing the house, especially valuable given how much home equity Connecticut homeowners often have. Income above the means test threshold is the second major factor, and Connecticut’s high median income figures mean even well-compensated filers can land above the cutoff.
Do You Qualify for Chapter 7 Instead? The Means Test
Connecticut’s current median income figures:
- 1 person: $84,302
- 2 people: $106,224
- 3 people: $134,470
- 4 people: $159,934
- Each additional person: add $11,100
Filers above the median for their household size generally must commit to a five-year plan; those below can propose three years.
Mortgage Cure in Connecticut
Filing Chapter 13 triggers the automatic stay, halting foreclosure immediately. The plan spreads mortgage arrears across its three-to-five-year duration while you resume regular payments going forward.
Vehicle Treatment and Cramdown
Connecticut exempts $7,000 combined equity across up to two motor vehicles. If your car loan was originated far enough before filing and the vehicle is worth less than the remaining balance, the plan can cram the loan down to the vehicle’s current market value at a court-approved interest rate.
Which Federal District Do You File In?
District of Connecticut - three divisions: Hartford, Bridgeport, and New Haven, each serving specific counties.How Much Does a Chapter 13 Attorney Cost in Connecticut?
Chapter 13 attorney fees in Connecticut typically run $3,000 to $4,500, on top of the 313 federal filing fee. Most of the fee is built into the plan itself.
Common Mistakes Connecticut Filers Make
Not comparing state versus federal exemptions before filing. Given how different the two systems are on the wildcard question, skipping this comparison can mean a higher plan payment than necessary.
Missing required tax filings during the plan, which can trigger a motion to dismiss.
Overlooking a non-filing spouse’s income in the means test.
Overlooking the two-vehicle combined limit for married couples filing jointly.
A Realistic Example
Consider a filer we’ll call Michael, living in Hartford. He works in insurance administration and fell behind on his mortgage after a period of reduced hours. He owns his home with about $210,000 in equity and drives a car worth $9,000 with a small loan remaining.
Connecticut’s $250,000 homestead exemption fully covers his equity with room to spare, keeping his liquidation test floor low on the housing side. His vehicle equity, once the exemption applies, adds little to the calculation. His attorney confirms Connecticut’s own exemptions are the clear choice given his home equity.
His income lands above Connecticut’s median for a household of two, so he commits to a five-year plan. The mortgage arrears are spread across the plan while he resumes regular payments. Five years later, the mortgage is current and the remaining unsecured debt is discharged.
Frequently Asked Questions About Chapter 13 Bankruptcy in Connecticut
Can Chapter 13 stop foreclosure in Connecticut?
Yes. Filing triggers the automatic stay, which halts foreclosure immediately. Your plan then spreads the mortgage arrears across three to five years while you resume regular payments.
Should I use Connecticut or federal exemptions in Chapter 13?
It depends on what you own. Homeowners with meaningful equity usually do better under Connecticut’s own $250,000 homestead. Renters or filers with less equity often do better under the federal system, since Connecticut’s own wildcard is only $1,000.
How long does a Chapter 13 plan last in Connecticut?
Three to five years. Filers with household income above Connecticut’s median for their household size generally must propose a five-year plan; those below can propose three years.
Can I keep my car in a Connecticut Chapter 13?
Yes — Chapter 13 doesn’t require giving up property. If your car loan is old enough and the vehicle is worth less than the loan balance, the plan may also cram down the loan to the vehicle’s current value.
What is the Connecticut bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $84,302 for one person, $106,224 for two, $134,470 for three, and $159,934 for four, with $11,100 added per additional person.
Which bankruptcy division do I file in if I live in Hartford or Bridgeport?
The District of Connecticut has three divisions — Hartford, Bridgeport, and New Haven — each serving specific counties based on where you’ve lived for most of the past six months.
Where to Verify the Details
Connecticut’s exemption statutes are published in Conn. Gen. Stat. § 52-352b. For current means test figures, check the U.S. Trustee Program website.
Alternatives to Chapter 13 in Connecticut
If you pass the means test and don’t need to cure a mortgage, our Chapter 7 guide for Connecticut explains how straight liquidation might discharge your debt faster.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect Connecticut bankruptcy exemption amounts and federal filing data as of July 2026.