Find Out What You Can Keep If You File Bankruptcy In Colorado
Researching what you can keep if you file bankruptcy in Colorado? Welcome to the Colorado Bankruptcy Guide! We hope to provide you the information you need to make a decision about whether or not bankruptcy is your best option to battle overwhelming debt.
What Can You Keep If You File Bankruptcy In Colorado?
There are rules that protect certain things when you file bankruptcy. Those rules are called exemptions. Each state has different exemptions. However, there are also federal exemptions. In this article, we’re going to review the Colorado bankruptcy exemptions.
Colorado’s bankruptcy exemptions can be found at Colorado Revised Statute 13-54-102. They were updated in 2022 to increase amounts for certain exemptions and to add exemptions for money in a bank account and for guns. The new rules also allow an RV to be covered by the homestead exemption.
Each exemption gives a value that is protected. The value we use is liquidation value, not replacement value. For example, we wouldn’t need to protect the value of your couch if it was new, we’d need to protect the value of it at a garage sale. Those two numbers are very different. For things like cars and homes that might have a loan attached to them, we use the value of the equity in those items. That is the difference between what you owe and what you could get for the items in a private sale.
Colorado Wearing Apparel Exemption
The Colorado clothing exemption protects $2,000 worth of clothing. If a couple files together, this amount can be double.
Colorado Jewelry Exemption
The Colorado jewelry exemption protects $2,500 worth of jewelry. This can be doubled for a couple. This also includes wedding and engagement rings.
Colorado Library, Family Pictures, and School Books Exemption
The Colorado library, family pictures, and school books exemption protects $2,000 in value. Professional books can be covered by the tools of the trade exemption, below.
Colorado Burial Site Exemption
Burial sites, include mausoleum spaces, are completely protected for each filer and their dependents.
Colorado Household Goods Exemption
Household goods are protected up to $6,000. This can be doubled for a couple. Household goods is a broad category and includes furniture, appliances, electronics, and other items.
Colorado Retirement Or Pension Exemption
Pensions and other retirement accounts like 401(k)s and IRAs are protected when you file bankruptcy in Colorado.
Colorado Tools Of The Trade Exemption
The stock in trade, supplies, fixtures, maps, machines, tools, electronics, equipment, books, and business materials of a debtor that are used and kept for the purpose of carrying on a filer’s primary business are protected up to $60,000. If those items are used for a part-time enterprise, the exemption protects them up to $20,000.
Colorado Motor Vehicle Exemption
Up to two vehicles with no more than $15,000 in equity, combined are protected. That amount doubles for a couple. If a filer is over the age of 60 or disabled, that amount increases to $25,000.
Colorado Homestead Exemption
The Colorado homestead exemption protects up to $250,000 in equity or $350,000 if the filer is older than 60 or disabled. The enhanced exemption can also be used if a filer’s family member living in the home is older than 60 or disabled. This exemption cannot be doubled for couples.
These are the most common exemptions that Chapter 7 and Chapter 13 bankruptcy filers use in Colorado. There are others, but they rarely get used. Most people will be able to keep everything they own when they file bankruptcy. The most common thing that people in Colorado will lose is their tax refund, but we can strategize how to keep that in some cases.
Talk To An Experienced Denver, Colorado Bankruptcy Attorney About What You Can Keep If You File Bankruptcy In Colorado
We offer free consultations to individuals who want to learn more about the Colorado bankruptcy process. During your consultation, you’ll meet with an experienced bankruptcy attorney who will go over what you’ll be able to keep or possibly have to turn over to the bankruptcy court.
The easiest way to make an appointment for a free consultation is by going to our scheduling page.