Colorado Bankruptcy Exemptions – What Are They?
Colorado bankruptcy exemptions determine what property you can and cannot keep when you file bankruptcy. In a Chapter 13 case, you can keep all of your property as long as you continue to pay any loan you have against it or pay the trustee at least the non-exempt value of any of your assets. In a Chapter 7 case, you can keep all property that is “exempt” (protected) from the claims of creditors. So, if the property in which you have any equity is sold for the benefit of creditors, the exempt amount must be given back to you. If the property is worth less than the Colorado bankruptcy exemption, however, it will not be sold and you will be allowed to keep it.
Another option that your attorney will discuss is selling any non-exempt property before we file your petition and then using the money from the sale in an appropriate manner. That way, you get to keep the value of the unprotected piece of property. You should talk to a lawyer before you sell or give away any property before you file bankruptcy. Just because you no longer possess it doesn’t mean that the trustee can’t get it.
Colorado Bankruptcy Exemptions Protect The Following Property:
- Home, including mobile homes – up to $60,000.00 in equity, or $90,000.00 if you are older than 60 or disabled
- Household goods – up to $3,000.00. Household goods include, but are not limited to, computers, sound systems, cameras, bicycles, and the usual furniture, appliances, etc.
- Food – up to $600.00.
- Motor vehicles – up to $5,000.00 in equity in vehicles or bicycles, or $10,000.00 if you are older than 60 or disabled
- Tools of your trade – up to $20,000.00
- Clothing – up to $1,500.00.
- Jewelry – up to $2,000.00
- Miscellaneous – up to $1,500.00 in books and family pictures; one burial site for you and each of your dependents; health aids; up to $3,000.00 for library of professional person.
Figuring out what property you’ll be able to keep when you file bankruptcy is one of the best reasons to hire an experienced lawyer.
To learn more about Colorado bankruptcy exemptions and whether or not Chapter 7 bankruptcy or Chapter 13 is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Use our online scheduling system allows to schedule bankruptcy consultation at a time that is convenient for you or call 303.331.3403.