Best Bankruptcy Lawyers in New Britain, CT

When filing for Chapter 7 bankruptcy, assets that do not fall under exemption are sold by the trustee to pay off creditors. However, there are certain assets that are protected under state and federal law. These include: Homestead Exemption - If your primary residence is considered a homestead, it may be exempt up to a certain value depending on the state you live in. Personal Property Exemption - This includes household goods (furniture, appliances), clothing, jewelry (up to a certain value), tools of trade (up to a certain value), and other personal items. Retirement Accounts - Certain retirement accounts such as IR As and 401(k)s may be exempt up to a certain amount. Public Benefits - Public benefits like social security income and unemployment benefits are typically exempt from being taken by creditors. Insurance Policies - Life insurance policies may be exempt if they have specific provisions such as naming beneficiaries or providing cash surrender value. If you're considering filing for Chapter 7 bankruptcy but are worried about losing your home, there's good news - Connecticut has one of the most generous homestead exemptions in the country. Under state law, homeowners can protect their primary residence up to $75,000 in equity ($150,000 for couples). This means that if the equity in your home is less than $75,000, you can keep it after filing for bankruptcy. If it's more than that, you may be required to sell your home and use the proceeds to pay off creditors.