Chapter 7 bankruptcy can provide powerful financial relief for individuals overwhelmed by debt. Often referred to as "liquidation bankruptcy," Chapter 7 helps discharge most unsecured debts, giving people a clean slate. However, not everyone qualifies. If you're considering this path, understanding the requirements is critical. At Grafstein & Arcaro, LLC, we help Connecticut residents determine their eligibility and guide them through every step of the process.

1. What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy allows individuals to eliminate unsecured debts such as credit cards, medical bills, personal loans, and utility bills. In exchange, some non-exempt assets may be sold to repay creditors. However, most people filing for Chapter 7 in Connecticut can keep essential property thanks to state and federal exemptions.

2. Key Eligibility Requirements

To qualify for Chapter 7 bankruptcy in Connecticut, you must meet several important criteria:

The Means Test

The most significant hurdle is the means test, which compares your income to the median household income for Connecticut. If your income is below the median, you automatically qualify.

As of 2025, the approximate median incomes in Connecticut are:

• $80,000 for a family of two
• $96,000 for a family of three
• $111,000 for a family of four

If your income exceeds the median, you must complete a detailed calculation of your monthly income and allowable expenses. If you still don’t have enough disposable income to repay debts, you may still qualify.

Previous Bankruptcy Filings

You cannot file for Chapter 7 if you received a Chapter 7 discharge within the last eight years or a Chapter 13 discharge within the last six years.



Credit Counseling Requirement

You must complete a credit counseling course from an approved provider within 180 days before filing. A certificate of completion must be included in your bankruptcy petition.

3. Common Reasons People Qualify

Connecticut residents who file for Chapter 7 are often facing:

• Job loss or reduced income
• Medical emergencies and high hospital bills
• Divorce or separation
• Credit card or personal loan debt that has spiraled

4. Property Exemptions in Connecticut

Connecticut offers state and federal exemption systems, and debtors may choose whichever provides better protection for

their assets. Exemptions can cover:

• Your home (up to a certain equity limit)
• A personal vehicle
• Household goods and furnishings
• Retirement accounts
• Tools of your trade

An attorney can help you determine which exemption system is more beneficial for your situation.

5. How Grafstein & Arcaro, LLC Can Help

At Grafstein & Arcaro, LLC, we provide legal assistance to Connecticut residents looking for relief through bankruptcy. We assess your financial situation, help you navigate the means test, and ensure that your filing complies with both state and federal requirements. With careful guidance, we aim to help you achieve the financial fresh start you deserve.