Property Exempt from a Judgment Creditor.
On July 12th, 2021 Governor Ned Lamont signed into law An Act Concerning Property That Is Exempt From A Judgment Creditor, HB 6466 . The law increases Connecticut's homestead exemption to $250,000, its motor vehicle exemption to $7,000, and creates an exemption for the cash surrender value of life insurance policies. HB 6466 takes effect on October 1st, 2021, and creates a world of opportunities for preserving wealth while eliminating debt. The law increases Connecticut's homestead exemption to $250,000, its motor vehicle exemption to $7,000, and creates an exemption for the cash surrender value of life insurance policies.
This new law is the most favorable development seen in decades. HB 6466 offers those families who may be candidates for a bankruptcy solution an enormous potential for a fresh start. Typically, most family wealth is locked up in the home. The new law expands the principal residence equity from $75K to up to $500K for married couples owning the home jointly.
Connecticut home prices have spiked considerably lately. Even so, the new law means that in most situations the equity in your home, even if it's substantial, will not get in the way of your fresh start in bankruptcy. You may still be able to discharge credit card and other debt and keep your home.
The new law addresses the value of your cars as well. A married couple that each owns a car can exempt a total of $14,000 in equity between the two vehicles. The new cash surrender exemption of life insurance policies has been changed from a $1,000 maximum to exemption of the entire amount.
If exemptions addressed in HB 6466 have you considering debt consolidation, please contact the law office of Weatherby & Associates today. Call 860-769-6938.