Now In Connecticut residents can definitely enjoy the state’s new $250,000 homestead exemption, even though your debts may have accrued before the increase went into effect on Oct. 1, 2021.
The Connecticut Supreme Court ruled that the state’s enlarged homestead exemption applies to creditors whose unsecured claims arose before the exemption was increased. Previously homeowners could claim an exemption of $75,000 per person for the equity in the primary residence. That has now been increased to $250,000 per person.
The equity is calculated by subtracting mortgage and tax debt from the property’s value ; liens my also be deducted depending on whether there is sufficient equity in the property, Plus the new exemption amount to secure them. if not certain judicial liens can be removed from the real estate in a bankruptcy case.
This is a major expansion of homeowner’s rights in Conn. and it applies to post judgment proceedings in state court and also in bankruptcy proceedings to save your home.
Please call our office if you have further questions about this.