Bankruptcy Requirements in Connecticut

If you're a Connecticut resident who's overwhelmed by debt, you may consider filing for Chapter 7 or Chapter 13 bankruptcy protection. Chapter 7 bankruptcy can help you eliminate certain debts while Chapter 13 allows you to pay back what you owe over time. Before you submit your bankruptcy petition, you need to understand what the federal and state rules are for filing. In Connecticut, the local filing rules are governed by the district bankruptcy court.

Credit Counseling

Under Connecticut state law, all debtors are required to complete credit counseling prior to filing a bankruptcy petition. This requirement may be waived in emergency situations. The district bankruptcy court maintains a list of approved credit counseling agencies. You must receive your credit counseling certification in the 180 days before you file. Additionally, you must complete a second course in financial management within 45 days of filing.

Means Test

The means test is required to determine your eligibility to file Chapter 7. Your income for the previous six months is compared to the median income for your family size. If your median income exceeds the allowable limit, you will have to file for Chapter 13 bankruptcy. In 2010, the median income limit for a single filer in Connecticut was $58,321. A family of four is allowed a maximum median income of $101,761.

Filing Requirements

Chapter 7 and Chapter 13 petitions must be filed with the district bankruptcy court in Hartford. In addition to your petition, you are required to submit a filing fee and the appropriate supporting documentation. As of 2010, the filing fees are $299 for Chapter 7 and $274 for Chapter 13. You must submit a complete list of your creditors and their contact information, your income and expenses, assets and liabilities and a statement of financial affairs. You are not required to be represented by an attorney to file.

Meeting of Creditors

Both Chapter 7 and Chapter 13 debtors are required to attend a meeting of creditors approximately 20 to 40 days after filing. This meeting is presided over by the bankruptcy trustee, who is responsible for overseeing your case. At this meeting, the trustee and your creditors will ask questions about your overall financial situation. If you fail to attend this meeting or if new issues are raised in your case that indicate fraud, your petition may be dismissed.

Exemptions

In Chapter 7 bankruptcy, the court takes control of part or all of your assets. These assets are sold and the proceeds are used to pay your creditors. If you plan to file Chapter 7, you must also supply the court with a list of your exemptions. As of 2010, Connecticut residents may exempt up to $75,000 worth of equity value in their home, a motor vehicle up to $3,500 and any personal property up to $1,000.

References

• U.S. Trustee Program: Median Income Table
• The Bankruptcy Site: Connecticut Bankruptcy Exemptions
• U.S. Bankruptcy Court District of Connecticut: Chapter 7 Filing Requirements
• U.S. Bankruptcy Court District of Connecticut: Chapter 13 Filing Requirements
• U.S. Bankruptcy Court District of Connecticut: Debtor Frequently Asked Questions