This guide will provide a look at the Colorado bankruptcy exemptions in terms of protecting the property you can exempt from creditors in the event you file for bankruptcy. Colorado Bankruptcy exemptions guide and chart below will give you a basic idea of what you can expect as far as exemptions go in CO.
Depending on what type of charter you file. Chapter 7 or 13 will depend on why your filing for bankruptcy. A professional that specializes in bankruptcy can assist with this.
This site is for informational purposes only. Please consult with a legal professional for legal advice.
Exemptions limit applies to equity on a property. Keep in mind that equity is value difference of the property in question and what is owed on the property. Here is an exmaple:
Home valued at $100,000 with a loan of $50,000 has an equity value of $50,000.
In the state of Colorado when filing for bankruptcy there may also be
Asset
Homestead
Exemption
Up to $75,000 of real property, manufactured or mobile home that you occupy. If occupied by someone 60 years of age or older and disabled, $105,000.
Personal Property
Clothing: Up to 2,000
Food and Fuel: Up to $600
Household goods: up to $3000
One burial site person, articles of adornment and jewelry up to $2,500
Family books and pictures to $2,000
Colorado Motor Vehicle Exemption
If using to travel to work a motor vehicle or bicycle up to $7,500. If used by an elderly or depending with disability then up to $12,500
Wages
The greater of the two amounts will be used: Either minimum of 75% of earned but unpaid wages, pension payments, and insurance. Or 30 times federal minimum wage.
Pensions
Retirement accounts that are tax exempt such as 401(k)s, 403(b)s, money purchases plans, profit-sharing, simple IRAs, and SEP
IRAS and Roth IRAs to 1,283
ERISA-qualified benefits that include Roth IRAs and IRS’s. Also if a Veteran served in armed conflict or war a Veteran’s Pension is used.
Deferred compensation, defined contribution plans, and Public employees pensions.
Police offers and firefighters.
Public Benefits
- Unemployment compensation
- Workers compensation
- Spouse or child if the veteran did serve in war, Veterans benefits for veteran
- Crime victims compensation
- Disability benefits up to $3000
- Earned income tax credit
Insurance
- Group life insurance policy or proceeds
- Proceeded from life insurance If policy prohibits use to pay creditors
- Fraternal benefit society
- $400 a month for disability benefits. If received in one lump sum the entire amount is exempt
- Life insurance cash surrender value up to $100K If contributions were made within the past 48 months it will be excluded.
- Homeowner proceeds: Insurance for one year after received
Like we said earlier in this guide you should contact a professional attorney who deals with Colorado Bankruptcy exemptions. The above are just some of the Colorado exemptions and this should be used for more informational purposes.
