Bankruptcy and Your Home: What You Need to Know in Connecticut
Mark Kratter

Facing the possibility of losing your home is one of the most stressful financial experiences a person can endure. For Connecticut residents struggling with mortgage payments or foreclosure notices, bankruptcy may offer a lifeline. But how exactly does it work—and can it really protect your home?

Attorney Mark Kratter, a seasoned Connecticut bankruptcy attorney, breaks down what homeowners need to know about how bankruptcy can help them stay in their homes and what state-specific protections may apply.

Can Bankruptcy Stop Foreclosure?

Yes—filing for bankruptcy triggers an automatic stay, a powerful legal protection that immediately halts most collection activities, including:

  • Foreclosure proceedings

  • Eviction notices (in certain cases)

  • Wage garnishments

  • Creditor calls and letters

This stay gives you time to assess your situation and work with your attorney to find the best way forward—possibly saving your home in the process.

Chapter 7 vs. Chapter 13: What’s Better for Homeowners?

When it comes to protecting your home, the type of bankruptcy you file matters:

Chapter 7 Bankruptcy

  • Offers quick debt relief by eliminating unsecured debts like credit cards and medical bills.

  • May temporarily halt foreclosure, but doesn’t provide a long-term solution if you're behind on mortgage payments.

  • Useful for homeowners who are current on their mortgage but overwhelmed by other debts.

Chapter 13 Bankruptcy

  • Allows you to catch up on missed mortgage payments over three to five years.

  • Lets you keep your home while reorganizing your debts into a manageable payment plan.

  • Ideal for homeowners who have steady income but need time to get back on track.

Attorney Mark Kratter will help you determine which option fits your unique circumstances.

Connecticut’s Homestead Exemption

Connecticut offers a homestead exemption that protects a portion of your home’s equity from creditors during bankruptcy:

  • As of current state law, up to $250,000 of equity in your primary residence may be protected.

  • This means if your home equity falls under the exemption amount, you may be able to keep your house even in a Chapter 7 case.

Knowing the value of your home and how much equity you have is critical to understanding your protection.

Don’t Wait—Early Action Makes a Difference

The sooner you speak with an experienced bankruptcy attorney like Mark Kratter, the more options you’ll have to protect your home and your financial stability. Delaying can limit your choices and increase the risk of foreclosure.

Take Control of Your Home and Your Future

If you're worried about losing your home, bankruptcy may provide the breathing room you need. Schedule a free consultation with Attorney Mark Kratter today and get personalized guidance on how to protect your most valuable asset.

📞 Call (203) 847-2000 or visit www.laws4ct.com to get started.