FAQs about Colorado Bankruptcy Exemptions

September 10, 2015

If you have questions about Colorado bankruptcy exemptions, we have answers. Check out these FAQs. Or contact our Colorado Springs bankruptcy lawyer today.

If you have questions about Colorado bankruptcy exemptions, we have answers. Check out these FAQs. Or contact our Colorado Springs bankruptcy lawyer today.

Bankruptcy exemptions allow people who are filing for bankruptcy (i.e., bankruptcy petitioners) protect and keep some of their personal property through their case. While some states allow petitioners to choose between whether they want to use federal or state bankruptcy exemptions, in Colorado, petitioners are required to use the state exemptions.

Given the fact that these exemptions apply to different types of property and that many petitioners are not familiar with how exemptions may apply to their situation, below, we will answer some commonly asked questions about Colorado bankruptcy exemptions.

When you are ready to get more specific answers about how you can take advantage of CO bankruptcy exemptions, based on your situation, it’s time to contact a Denver bankruptcy lawyer at the Law Office of Jon B. Clarke, P.C.

Helpful Answers about Colorado Bankruptcy Exemptions

Q: Can I keep my home under Colorado bankruptcy exemptions?

A: Maybe – it will depend on the value of your home, as well as your personal situation. Per the homestead or residential property exemption, petitioners can generally exempt as much as:

  • $60,000 of their home (or other real estate)
  • $90,000 of their home if they (and/or their spouse) are at least 60 years old and/or are disabled.

Here, it should be noted that, even if petitioners move forward to sell their homes as part of their bankruptcy case, they can still use this exemption to retain the applicable amount and use that towards the purchase of a new home (as these funds are exempt for up to one year following the sale of the home).

Q: What about my car?

A: Motor vehicle bankruptcy exemptions in Colorado will allow the general petitioner to exempt as much as $5,000 of one (or more) motor vehicles. This exemption amount doubles, however, when petitioners (or their dependents) are 60 (or older) and/or are disabled.

Q: What other property qualifies for exemption under Colorado bankruptcy exemptions?

A: A lot of other property can be protected under Colorado bankruptcy exemptions, as there are exemptions that can cover:

  • Other personal property, such as clothing, jewelry, art, books and collectibles
  • Insurance benefits
  • Pension and retirement benefits
  • Business partnerships
  • Work-related tools
  • Other benefits, such as workers’ compensation benefits and unemployment benefits (just to name a few).

The takeaway here is that it’s best to consult with an experienced attorney who can evaluate your situation and help you take advantage of as many Colorado bankruptcy exemptions as possible. This can help you resolve your debt while retaining as much of your personal possessions as the law will permit.

Q: Do any of these exemptions change for people filing for bankruptcy with their spouses?

A: Yes, some exemptions can be doubled for joint petitioners (i.e., spouses who file for bankruptcy together). For instance, the motor vehicle exemption can be doubled for joint petitioners.

This aspect of bankruptcy exemptions can be very beneficial for joint filers, as it can help them retain even more property. And, again, an experienced attorney can help joint filers maximize their protections under all available doubled exemptions.

Q: What do I need to do to start taking advantage of the protections offered by CO bankruptcy exemptions?

A: Simply contact us today. By getting your bankruptcy case started with us, you can be sure that you will be able to effectively resolve your debt issues while benefiting from every possible protection the law can offer.

Contact a Colorado Springs Bankruptcy Lawyer at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy