When filing for bankruptcy, petitioners may be able to take advantage of Colorado bankruptcy exemptions in order to retain certain property through the proceedings. These exemptions effectively prevent certain property from becoming part of the bankruptcy estate. They can apply to various types of property, including real estate, motor vehicles and personal property.
To clarify how and when Colorado bankruptcy exemptions apply, below we have answered some of the most commonly asked questions about these exemptions. When you are ready for some specific answers, as well as helpful professional advice regarding your best options for debt relief, don’t hesitate to contact Denver Bankruptcy Attorney Jon B. Clarke today.
Important Information about Colorado Bankruptcy Exemptions
Q: Will Colorado bankruptcy exemptions let me keep my home through a bankruptcy case?
A: Maybe. It will depend on the value of your home.
Per Colorado law, the homestead exemption for bankruptcy is a maximum of $60,000. So, a bankruptcy petitioner in Colorado can exempt up to $60,000 of his home (or other real estate he owns). This exemption increases to $90,000 for petitioners who are at least 60 years old, who are disabled and/or who have dependents who are 60 or older and/or who are disabled.
If you end up selling your home through bankruptcy, you can still exempt up to $60,000 or $90,000 from the proceeds of your home for up to one year (using the proceeds for a new home).
Q: What other types of property can be protected by these exemptions?
A: A lot. Along with motor vehicles and personal property (like clothing and jewelry, for instance), other property that can be protected by Colorado bankruptcy exemptions includes (but is by no means limited to):
- Work-related tools
- The property of a business partnership
- Child or spousal support payments
- Insurance benefits.
The best way to maximize your use of Colorado bankruptcy exemptions (and protect as much of your property as possible through your case) is to work with an experienced lawyer.
Q: Do the exemptions change for married people filing for bankruptcy?
A: Some can. In fact, for certain Colorado bankruptcy exemptions, like the motor vehicle exemption, the amount that can be exempt can be doubled for joint petitioners (i.e., married people who file for bankruptcy together).
Taking advantage of the available doubled exemptions is, again, best done with the help of an attorney so that petitioners don’t overlook certain doubled exemptions (or misunderstand when they do and do not apply).
Q: Do the exemptions protect government aid or benefits?
A: Yes, in many cases, Colorado bankruptcy exemptions will protect government benefits. In fact, there are exemptions for retirement benefits, workers’ compensation benefits and unemployment benefits.
Q: Can petitioners choose between using Colorado versus federal bankruptcy exemptions?
A: No. Although some states allow bankruptcy petitioners to choose whether they will be using federal or state exemptions, in Colorado, all petitioners have to use the Colorado bankruptcy exemptions.
Contact Denver Bankruptcy Attorney Jon B. Clarke Today
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact trusted Denver Bankruptcy Attorney Jon B. Clarke for experienced help pursuing your best debt relief option.
You can complete our Business or Consumer Debtor Analysis Form, call our firm at (303) 779-0600 or (866) 916-3950, or email us using the contact form on this page.
From our offices based in Denver, Castle Rock and Greenwood village, we take pride in providing people throughout the state of Colorado with the highest quality debt relief legal services.