Connecticut Bankruptcy

Individuals or businesses may initiate a legal proceeding when they are unable to repay their outstanding debts and obligations. This process is called bankruptcy. This process provides relief to such debtors and is administered under the Federal Bankruptcy Code.

However, Connecticut has exemptions that help people in debt figure out what they can keep safe from creditors and how to create a plan to pay back what they owe. Debtors who file for bankruptcy can choose to follow the Connecticut or federal exemptions. This choice will affect what property they can protect.

How to File Bankruptcy in Connecticut

It is vital for residents to understand how a bankruptcy matter is filed in Connecticut. First, all cases are filed in the U.S. Bankruptcy Court for the District of Connecticut. Before filing, you must remember to gather all necessary documents to support your case. These may include documents such as two years of tax returns, six months of income records, bank statements, asset and debt lists, real estate deeds, vehicle titles, lawsuit and collection notices.

You must complete credit counseling with an approved provider within 180 days. You must make a choice based on your situation, to adopt chapter 7, 13, or 11, then decide whether state or federal exemptions better protect your assets. File your petition and schedules with the proper divisional office in person or by mail, while following the local rules of bankruptcy procedure. The cost of filing a bankruptcy petition in Connecticut depends on your choice of chapter. It may vary from about $338 for a Chapter 7 case to about $313 for a Chapter 13 case, including other additional charges.

After filing, you must attend the 341 meeting of creditors with your valid ID, requested documents, and answer all questions under oath. Finally, you must complete a debtor-education program, comply with all trustee/court requests, and proceed to discharge or plan confirmation/completion.

Connecticut Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

In Connecticut, each chapter serves distinct financial profiles, with exemptions that determine which assets are at risk. These include:

Chapter 7 (Liquidation)

In this type of bankruptcy, a trustee is appointed by the court to sell non-exempt property to repay the creditors. The choice of the exemption system will affect the retention of a debtor’s assets. This option is suitable for debtors with low assets and low income.

Chapter 13 (Repayment)

For an individual with a regular income, you may create a plan to repay your debts when you file your case under Chapter 13. However, it must be approved by the court and cover the value of non-exempt equity under your chosen exemption scheme.

Chapter 11 (Reorganization)

This chapter is often filed by businesses and high-debt individuals. Although it is complex, it allows you to reorganize your finances and keep your assets. It will enable you to keep your business while working out a repayment plan that must be approved by the court.

Step-by-Step Checklist for Connecticut Filers

While you are filing for bankruptcy in Connecticut, use this brief checklist as a practical roadmap.

• Complete a credit-counseling course
• Compile your income, tax, asset, and debt records
• Choose the right chapter (7, 13, or 11) for your case
• Select either Connecticut or federal exemptions
• File your petition and schedules in the correct division
• Pay the filing fee or request installments/waiver
• Attend the 341 meeting of creditors
• Complete debtor-education course
• Answer trustee or court communications until the repayment plan is completed.

Connecticut Bankruptcy Court & Record Access

Connecticut has three divisional offices where individuals or businesses can file their cases.

Court Locations

• The District of Connecticut: The court district has three divisional offices in Hartford, Bridgeport, and New Haven. The main office of the United States Bankruptcy Court for the District of Connecticut is located in:

Record Access

The U.S. Bankruptcy Court for the District of Connecticut maintains bankruptcy records in the state. This court is a federal court, so that record seekers may access their records through the Public Access to Court Electronic Records (PACER) system. However, they must pay a $0.10 fee to search and view case documents.

Individuals can dial (866) 222-8029 (toll-free) from any touch-tone telephone to access basic case details from the Multi Court Voice Case Information System (McVCIS). Such information includes the case number, trustee, name of debtor, filing date, judge, discharge date, chapter, debtor attorney, status of case, 341 meeting date, time, and location.

Alternatively, record seekers may request copies of court documents from the public terminals, by mail, or at the front counter in the clerk’s office. They may visit the clerk’s office in person during regular office hours (9:00 a.m.–4:00 p.m.) on weekdays to view case documents.