Connecticut Debt Collection Laws: Time Limits, Garnishment and Your Rights
Connecticut debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Connecticut
- Time limit to sue on a written contract
- 6 years for an action on a written contract, a simple or implied contract, or an account. Conn. Gen. Stat. § 52-576(a)
- Wage garnishment limit
- The lesser of 25% of weekly disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the higher of the federal or Connecticut minimum hourly wage. Conn. Gen. Stat. § 52-361a(a), (f)
- Money protected in a bank account
- No general dollar exemption for bank accounts. Exempt funds (such as Social Security or other benefits) keep their protection, and banks must protect electronically deposited exempt funds identified during a look-back period. Conn. Gen. Stat. §§ 52-367b(a), (c); 52-352b(18)
- Answering a debt lawsuit
- In a small claims case, the defendant must file an answer on or before the answer date set by the clerk and send a copy to the plaintiff. A defendant who does not respond risks a default judgment. Connecticut Judicial Branch Small Claims FAQ
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on a written contract, a simple or implied contract, or an account. Source: Conn. Gen. Stat. § 52-576(a) |
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| Time limit for credit cards and open accounts | 6 years for an action on an account, the same as written contracts. An express contract that is not in writing and not evidenced by a signed note or memorandum has 3 years. |
| How long a judgment lasts | An execution to enforce a money judgment may be issued for 20 years after the judgment is entered, and a lawsuit on the judgment may be brought for 25 years. For small claims judgments, the limits are 10 years for execution and 15 years for a lawsuit. A motion to revive a judgment may be filed before the period ends, but revival cannot extend these time limits. Source: Conn. Gen. Stat. § 52-598 |
If you are sued
| Answering a debt lawsuit | In a small claims case, the defendant must file an answer on or before the answer date set by the clerk and send a copy to the plaintiff. A defendant who does not respond risks a default judgment. |
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Garnishment and what creditors can't take
| Wage garnishment limit | The lesser of 25% of weekly disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the higher of the federal or Connecticut minimum hourly wage. Because Connecticut's minimum wage is higher than the federal one, this protects more pay than the federal 30x rule. A wage execution is available only after the debtor fails to follow a court installment payment order. |
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| Money protected in a bank account | No general dollar exemption for bank accounts. Exempt funds (such as Social Security or other benefits) keep their protection, and banks must protect electronically deposited exempt funds identified during a look-back period. A debtor may also apply the $1,000 'any property' exemption to money in an account. |
| Homestead exemption | $250,000 in equity (fair market value minus liens) in the debtor's homestead. The limit is $75,000 for judgments arising from sexual abuse or exploitation of a minor, sexual assault, or other willful, wanton or reckless misconduct. Raised from $75,000 by P.A. 21-161, for bankruptcy and postjudgment proceedings started on or after October 1, 2021. Source: Conn. Gen. Stat. § 52-352b(21) |
| Vehicle exemption | Up to two motor vehicles, up to $7,000 in combined equity (fair market value minus liens and security interests). Raised from one vehicle worth $3,500 by P.A. 21-161. Source: Conn. Gen. Stat. § 52-352b(10) |
| Claiming an exemption | Wages and other property: the debtor returns the signed exemption claim form to the Superior Court; for most personal property levies, within 20 days after the levy. A wage execution is stayed for 20 days after it is served on the employer, and filing a claim within that time keeps it stayed until the claim is decided. Bank accounts: the debtor sends the exemption claim form (or other written notice) to the bank. If no claim is received within 15 days after the bank mails the execution and claim form, the bank pays the funds to the marshal. |
Debt collectors and interest
| State debt collection law | Yes. Connecticut's creditor collection practices law forbids any creditor, including an original creditor or a buyer of the debt, from using abusive, harassing, fraudulent, deceptive or misleading practices to collect a consumer debt. Consumer collection agencies are regulated separately under the licensing law. |
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| Debt collector licensing | Yes. A consumer collection agency must hold a license from the Banking Commissioner for its main office and each branch. This applies to out-of-state agencies that collect from Connecticut residents, including agencies collecting debts they bought. Source: Conn. Gen. Stat. § 36a-801(a) |
| Medical debt protections | For a debt arising from hospital services, prejudgment and postjudgment interest may not exceed 5% a year, and awarding interest is at the court's discretion. Source: Conn. Gen. Stat. § 37-3a(b) |
| Interest rate limits | In civil actions, interest of up to 10% a year may be recovered as damages for money withheld after it is due. The limit is 5% for debts from hospital services. Source: Conn. Gen. Stat. § 37-3a |
Where to get help in Connecticut
- Connecticut Department of Banking, Consumer Credit Division (licenses consumer collection agencies and enforces creditor collection rules)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Connecticut?
6 years for an action on a written contract, a simple or implied contract, or an account.
How long can a creditor sue on a credit card debt in Connecticut?
6 years for an action on an account, the same as written contracts. An express contract that is not in writing and not evidenced by a signed note or memorandum has 3 years.
How long does a court judgment last in Connecticut?
An execution to enforce a money judgment may be issued for 20 years after the judgment is entered, and a lawsuit on the judgment may be brought for 25 years. For small claims judgments, the limits are 10 years for execution and 15 years for a lawsuit. A motion to revive a judgment may be filed before the period ends, but revival cannot extend these time limits.
How much of my wages can be garnished in Connecticut?
The lesser of 25% of weekly disposable earnings, or the amount by which weekly disposable earnings exceed 40 times the higher of the federal or Connecticut minimum hourly wage. Because Connecticut's minimum wage is higher than the federal one, this protects more pay than the federal 30x rule. A wage execution is available only after the debtor fails to follow a court installment payment order.
How much money in a bank account is protected from creditors in Connecticut?
No general dollar exemption for bank accounts. Exempt funds (such as Social Security or other benefits) keep their protection, and banks must protect electronically deposited exempt funds identified during a look-back period. A debtor may also apply the $1,000 'any property' exemption to money in an account.
What is the homestead exemption in Connecticut?
$250,000 in equity (fair market value minus liens) in the debtor's homestead. The limit is $75,000 for judgments arising from sexual abuse or exploitation of a minor, sexual assault, or other willful, wanton or reckless misconduct.
Can a creditor take my car in Connecticut?
Up to two motor vehicles, up to $7,000 in combined equity (fair market value minus liens and security interests).
What debt collection practices are illegal in Connecticut?
Yes. Connecticut's creditor collection practices law forbids any creditor, including an original creditor or a buyer of the debt, from using abusive, harassing, fraudulent, deceptive or misleading practices to collect a consumer debt. Consumer collection agencies are regulated separately under the licensing law.
Do debt collectors need a license in Connecticut?
Yes. A consumer collection agency must hold a license from the Banking Commissioner for its main office and each branch. This applies to out-of-state agencies that collect from Connecticut residents, including agencies collecting debts they bought.
What protections apply to medical debt in Connecticut?
For a debt arising from hospital services, prejudgment and postjudgment interest may not exceed 5% a year, and awarding interest is at the court's discretion.
What is the maximum legal interest rate in Connecticut?
In civil actions, interest of up to 10% a year may be recovered as damages for money withheld after it is due. The limit is 5% for debts from hospital services.
How do I respond to a debt collection lawsuit in Connecticut?
In a small claims case, the defendant must file an answer on or before the answer date set by the clerk and send a copy to the plaintiff. A defendant who does not respond risks a default judgment.
How do I stop a garnishment or claim an exemption in Connecticut?
Wages and other property: the debtor returns the signed exemption claim form to the Superior Court; for most personal property levies, within 20 days after the levy. A wage execution is stayed for 20 days after it is served on the employer, and filing a claim within that time keeps it stayed until the claim is decided. Bank accounts: the debtor sends the exemption claim form (or other written notice) to the bank. If no claim is received within 15 days after the bank mails the execution and claim form, the bank pays the funds to the marshal.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.