When filing for Chapter 7 bankruptcy, people can protect some of their assets from being liquidated to repay their creditors by taking advantage of Colorado bankruptcy exemptions. These exemptions can apply to various types of assets, with the specific value of the asset determining whether that property qualifies for exemption.
Here and in a second part of this blog to come, we will showcase some important facts that people who are filing for bankruptcy should know about bankruptcy exemptions. It’s important to point out that:
- The information discussed herein is general in nature.
- You are encouraged to consult with experienced Colorado Bankruptcy Attorney Jon B. Clarke for more specific information and advice regarding your case.
Fact 1: When filing for bankruptcy in Colorado, you must use the Colorado bankruptcy exemptions (and not federal bankruptcy exemptions).
When it comes to bankruptcy exemptions, there are federal bankruptcy exemptions and state bankruptcy exemptions. In some states, people have the choice between which exemptions they want to use in their bankruptcy case. However, this is not the case in Colorado, as the state’s bankruptcy laws specifically mandate that borrowers who are filing for Chapter 7 in the state have to use the Colorado bankruptcy exemptions.
Fact 2: Colorado bankruptcy exemptions may allow you to keep your house and car.
One of the most common questions that comes up when people are considering filing for Chapter 7 bankruptcy is whether they will lose their homes and cars during these proceedings. In short, it depends on the value of these assets, as Colorado bankruptcy exemptions will allow borrowers to keep their:
- Homes as long as they are valued at $60,000 or less (or $90,000 or less if the homeowner is disabled, is elderly and/or has a spouse/dependent who is disabled or older than 60 years old)
- Motor vehicles as long as their value is no more than $5,000 (or $10,000 if the individual is disabled, is elderly and/or has a spouse/dependent who is disabled or older than 60 years old).
When the value of these assets exceeds the specific exemption amount, these assets may be sold, and the borrower may be entitled to a portion of the proceeds from the sale (with the rest going to pay back creditors).
Be sure to look for the upcoming second part of this blog for some more important facts to know about Colorado bankruptcy exemptions.
Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.