What assets are exempt from bankruptcy in Colorado?

Exempt assets in Colorado, available solely to individuals or parties filing Chapter 7 bankruptcy in the state’s jurisdiction, stem from a list of exemptions created by bankruptcy statutes in the state of Colorado. It is relevant to note that the state of Colorado does not utilize the federal exemptions list for debtors. The following lists only the most common and basic exemptions allotted under Colorado Revised Statutes, and in turn, the only reliable method of determining what specific exemptions are applicable to your personal case, in light of the case-specific nature of your assets and debts, is to consult with a Colorado bankruptcy lawyer.

• Homestead exemption up to $30,000, with a varied and limited number of exemptions in place for mobile homes and house trailers used as primary residence

• Life insurance benefits are exempt in a limited number of instances, including life insurance avails up to $5,000 with entire life insurance benefits exempt if plan precludes payment to creditors, all fraternal society benefits, all group life insurance benefits, and disability benefits, all if paid out in lump sum, or $200 monthly is paid out over time

• Pensions are typically exempt, pending the specific nature of the pension, including ERISA qualified benefits and benefits for public safety and education workers

• A limited list of exemptions for personal property allowed, with varying values and exemptions based on the nature of the property held

• The state of Colorado mandates that seventy-five (75) percent of all unpaid, but earned wages are exempt, including pension benefits in most cases

• There is no wildcard exemption in the state of Colorado

If considering filing Chapter 7 bankruptcy, individuals must consult with a bankruptcy lawyer to determine a number of issues, including state residency applicable for filing, eligibility to file Chapter 7 in general, a comprehensive exemptions strategy in light of available exemptions, and administrative issues, such as preparing and filing viable Chapter 7 claims. In order to file Chapter 7 in as favorable manner as possible, it is imperative to consult with a Colorado bankruptcy attorney before attempting any action concerning filing for bankruptcy, including Chapter 7.