Judiciary Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6466
AN ACT CONCERNING PROPERTY THAT IS EXEMPT FROM A JUDGMENT
Title: CREDITOR.
Vote Date: 4/5/2021
Vote Action: Joint Favorable
PH Date: 3/3/2021
File No.: 574
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
The Judiciary Committee
REASONS FOR BILL:
Currently the value of personal and real property that is exempt from creditors in a
bankruptcy proceeding is lower than that of many other states, and most of the surrounding
states. This difference may cause residents to leave the state if they need to file for
bankruptcy or lose their primary residency. The proposed legislation is an effort to increase
the value of certain personal and real property that shall be exempt from a judgment creditor
during bankruptcy as well as the cash surrender value of a life insurance policy.
RESPONSE FROM ADMINISTRATION/AGENCY:
None stated.
NATURE AND SOURCES OF SUPPORT:
Action Advocacy, P.C., Attorney, David F. Falvey, Esquire; supports this bill stating that the
current homestead exemptions and other exemptions have force Connecticut residents to
leave the state. It is stated that residents move to other states who have more favorable
bankruptcy laws in order to protect their homes and assets.
National Association of Consumer Advocates, Co-Chair and Attorney, Lorraine Martinez
Bellamy; supports this bill stating that the homestead exemption and auto exemption are out
of date and both received a D rating from the National Consumer Law Center. It is also
stated that the current homestead and auto exemptions put families at risk of losing their
primary residence and car during the bankruptcy process and increasing the values of these
exemptions would be a benefit to the states residents during a difficult time and more
closely align these exemptions to those in other states.
National Association of Insurance and Financial Advisors (NAIFA) Connecticut; supports
this bill stating that currently all of Connecticuts neighboring states protect 100% cash value
of whole life insurance policies whereas Connecticut only protects $4,000 which is a
disadvantage to residents going through the process. It is stated that if the creditor can
pursue the cash value of the life insured policy, the policy may ultimately collapse and may
cause additional issues for the insured. It is also stated that the cash value of a life insurance
policy should be protected like the assets of a 401K or IRA.
Connecticut Legal Services, Attorney and Policy Advocate, Raphael L. Podolsky; supports
this bill stating that currently 21 states have a higher homestead exemption and 37 states
have a higher motor vehicle exemption during the bankruptcy policy. It is also noted that the
National Consumer Loan Center gives Connecticut a D rating and that the current
homestead exemption is less than 50% of the states median home prices.
Susan M. Williams, LLC., Attorney, Susan M. Williams; supports this bill stating that the last
homestead exemption increase was 28 years ago. It is also stated that valuations of homes
have increased since 1993 and the homestead should be increased to reflect that increase
as well.
Ledyard, Connecticut Resident, Johnny Armaos; supports this bill stating that Connecticuts
homestead exemption is $75,000 whereas Rhode Island and Massachusetts have a
$500,000 homestead exemption. It is also stated that adequate protection should be given to
residents.
Duggan Bertsch Attorneys and Councilors at Law; supports this bill by providing a state by
state analysis that is used by residents in bankruptcy proceedings.
NATURE AND SOURCES OF OPPOSITION:
None stated.
Reported by: Richard ONeil, Assistant Clerk Date: April 13, 2021
Page 2 of 2 HB-6466


Statutes affected:
Raised Bill: 52-352b, 52-352a
JUD Joint Favorable: 52-352b, 52-352a
File No. 574: 52-352b, 52-352a
File No. 703: 52-352b, 52-352a
Public Act No. 21-161: 52-352b, 52-352a