SB00300 • 2026

AN ACT ESTABLISHING A DEBT COLLECTION EXEMPTION RELATING TO JOINT ACCOUNTS.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Banking Committee
Last action: 2026-05-04
Official status: House Calendar Number 563
Effective date: Not listed

Plain English Breakdown

The official bill text confirms the effective date is October 1, 2026, which was present in the candidate explanation but removed from 'limits_and_unknowns' as it is now a confirmed fact rather than an unknown.

Law Protecting Non-Owned Funds in Joint Accounts from Debt Collection

This law protects the part of a joint bank account balance that belongs to someone other than the person with debt, provided those funds were deposited for that other person's sole benefit.

What This Bill Does

Adds a new rule protecting specific parts of joint accounts from being taken by creditors.
Protects any portion of a joint account where the debtor has no ownership interest.
Applies only to money deposited or acquired by another joint owner for their own sole benefit.

Who It Names or Affects

People with debt who hold joint bank accounts
Creditors trying to collect unpaid debts from these accounts

Terms To Know

Exemptioner: The person whose property is protected by the law.
Joint account: An account held under state banking laws that involves more than one owner.
Equitable ownership interest: The legal right to own a share of the money in an account; this law protects funds where the debtor has no such right.

Limits and Unknowns

This protection only applies if the debtor has no real ownership claim to the specific funds.
The law does not protect joint accounts where both people have equal rights to the money or where the debtor owns a share of the deposit.

Bill History

2026-05-04 Connecticut General Assembly
Senate Adopted Senate Amendment Schedule A 5649
2026-05-04 Connecticut General Assembly
Senate Passed as Amended by Senate Amendment Schedule A
2026-05-04 Connecticut General Assembly
Transmitted Pursuant To Joint Rule 17
2026-05-04 Connecticut General Assembly
Favorable Report, Tabled for the Calendar, House
2026-05-04 Connecticut General Assembly
House Calendar Number 563
2026-04-13 LCO
Filed with Legislative Commissioners' Office
2026-04-13 LCO
Reported Out of Legislative Commissioners' Office
2026-04-13 Connecticut General Assembly
No New File by Committee on Judiciary
2026-04-13 Connecticut General Assembly
Favorable Report, Tabled for the Calendar, Senate
2026-04-10 JUD
Joint Favorable
2026-04-08 Connecticut General Assembly
Immediate Transmittal to Committee on Judiciary
2026-03-23 LCO
Reported Out of Legislative Commissioners' Office
2026-03-23 Connecticut General Assembly
Favorable Report, Tabled for the Calendar, Senate
2026-03-23 Connecticut General Assembly
Senate Calendar Number 98
2026-03-23 LCO
File Number 125
2026-03-16 LCO
Referred to Office of Legislative Research and Office of Fiscal Analysis 03/23/26 12:00 PM
2026-03-10 BA
Joint Favorable Substitute
2026-03-10 LCO
Filed with Legislative Commissioners' Office
2026-02-27 Connecticut General Assembly
Public Hearing 03/03
2026-02-26 Connecticut General Assembly
Referred to Joint Committee on Banking

Official Summary Text

To establish an exemption from debt collection for any part of the balance of an account deemed a joint account in which the exemptioner has no equitable interest.

Current Bill Text

Read the full stored bill text

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General Assembly Substitute Bill No. 300
February Session, 2026

AN ACT ESTABLISHING A DEBT COLLECTION EXEMPTION
RELATING TO JOINT ACCOUNTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 52 -352b of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2026): 2
The following property of any natural person shall be exempt: 3
(1) Necessary apparel, bedding, foodstuffs, household furniture and 4
appliances; 5
(2) Tools, books, instruments, farm animals and livestock feed, which 6
are necessary to the exemptioner in the course of his or her occupation, 7
profession or farming operation; 8
(3) Burial plot for the exemptioner and his or her immediate family; 9
(4) Public assistance payments and any wages earned by a public 10
assistance recipient under an incentive earnings or similar program; 11
(5) Health and disability insurance payments; 12
(6) Health aids necessary to enable the exemptioner to work or to 13
sustain health; 14
Substitute Bill No. 300

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(7) Workers' compensation, Social Security, veterans and 15
unemployment benefits; 16
(8) Court-approved payments for child support; 17
(9) Arms and military equipment, uniforms or musical instruments 18
owned by any member of the militia or armed forces of the United 19
States; 20
(10) Up to two motor vehicles to the value of seven thousand dollars 21
in the aggregate, provided value shall be determined as the fair market 22
value of the motor vehicles less the amount of all liens and security 23
interests which encumber them; 24
(11) Wedding and engagement rings; 25
(12) Residential utility deposits for one residence, and one residential 26
security deposit; 27
(13) Any assets or interests of an exemptioner in, or payments 28
received by the exemptioner from, a plan or arrangement described in 29
section 52-321a; 30
(14) Alimony and support, other than child support, but only to the 31
extent that wages are exempt from execution under section 52-361a; 32
(15) An award under a crime reparations act; 33
(16) All benefits allowed by any association of persons in this state 34
towards the support of any of its members incapacitated by sickness or 35
infirmity from attending to his usual business; 36
(17) All moneys due the exemptioner from any insurance company 37
on any insurance policy issued on exempt property, to the same extent 38
that the property was exempt; 39
(18) Any interest of the exemptioner in any property not to exceed in 40
value one thousand dollars; 41
Substitute Bill No. 300

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(19) Any interest of the exemptioner not to exceed in value four 42
thousand dollars in any accrued dividend or interest under, or loan 43
value of, any unmatured life insurance contract owned by the 44
exemptioner under which the insured is the exemptioner or an 45
individual of whom the exemptioner is a dependent; 46
(20) The cash surrender value of any life insurance policy issued upon 47
the life of a citizen or resident of this state, unless the life insurance 48
policy was assigned to or was effected for the benefit of the creditor or 49
unless the purchase, sale, or transfer of the life insurance policy is made 50
with the intent to defraud the creditor; 51
(21) The homestead of the exemptioner to the value of two hundred 52
fifty thousand dollars , provided value shall be determined as the fair 53
market value of the real property less the amount of any statutory or 54
consensual lien which encumbers it, except that, in the case of a money 55
judgment arising out of a claim of sexual abuse or exploitation of a 56
minor, sexual assault or other wilful, wanton, or reckless misconduct 57
committed by a natural person, to the value of seventy -five thousand 58
dollars; [and] 59
(22) Irrevocable transfers of money to an account held by a debt 60
adjuster licensed pursuant to sections 36a -655 to 36a-665, inclusive, for 61
the benefit of creditors of the exemptioner; and 62
(23) Any part of the balance of an account deemed a joint account 63
under section 36a -290 in which the exemptioner has no equitable 64
ownership interest and that was deposited in the account or acquired by 65
a joint account holder other than the exemptioner for such joint account 66
holder's sole benefit. 67
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 52-352b

BA Joint Favorable Subst.
Substitute Bill No. 300

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JUD Joint Favorable