Under Colorado Revised Statute §8-80-103, unemployment benefits are “exempt from levy, execution, attachment, or any other remedy provided for the collection of debt.”
That means that the bankruptcy trustee will not be able to take any benefits that you may have earned before you filed your bankruptcy. However, those funds may not be protected if they have been mingled with any other funds, for example, if you have deposited your benefits in the same bank account that your spouse deposits her paycheck.
If you have received unemployment benefits and have deposited them in the same bank account your spouse uses for direct deposit, make sure you clarify that issue with your bankruptcy attorney so that he can make sure those funds stay protected.
