Many people wonder if they will be able to keep what they own when they file bankruptcy.  In 99% of the cases they can by using the bankruptcy exemption system.  In Connecticut, a filer can use either the Federal or the State systems.  Under the Federal system one can usually exempt up to $13,900.00 of unused Homestead exemption discussed below.  The most common items to exempt with this exemption are personal property such as cash, money in bank accounts, prepaid rent, security deposits, tax refunds and excess vehicle equity.  Since the value of these items can vary over any given time period, it is often best to file when the values are low, i.e., when you have little money in the bank or wait until you get your tax refund.  In this way one can keep under the limit.  Under the State system, the exemption in Connecticut are far lower as applied to the same personal property mentioned above, it’s only $1000.00.  The State system is usually required when there is a lot of equity in one’s home since the exemption is $75,000.00, whereas in the Federal system the homestead exemption is only $27,800.00.  Under both of these systems the exemption doubles for joint owners.  Keep in mind also that many other types of property have their own separate exemption, such as the aforementioned exemption in home equity, as well as separate exemptions for vehicles, retirement accounts, social security and pension income, etc.  So if you are thinking of filing for for debt relief and obtaining a fresh start, and you need to be sure you can keep your property upon filing bankruptcy, please feel free to call Attorney Mark O. Grater in Groton, CT at 860-449-8059 or visit his web cite at www.graterlaw.com.