What is exempt from bankruptcy in Colorado?

When filing Chapter 7 bankruptcy in the state of Colorado, assuming the individual is eligible to file Chapter 7 and has a viable residency claim for exemptions in the state of Colorado, a debtor can only elect to claim exemptions from the Colorado exemptions list. This list of exemptions is derived from all the exemptions in Chapter 7 noted in the Colorado Revised Statutes. Federal bankruptcy exemptions are not allowed for debtors filing Chapter 7 in Colorado.

The following list highlights some of the more notable exemptions provided for debtors in the state of Colorado.

• Homestead exemption of up to $30,000 for real property, including mobile homes, and manufactured homes, with specific exemptions and value amounts assigned for other residences

• Pension benefits commonly found as exempt, these include ERISA qualified benefits, pension benefits for law enforcement and firefighters and public educator benefits

• Life insurance policy benefits are also exempted under Colorado law, based on the nature of policy and benefits provided

• At least seventy-five (75) percent of all earned yet unpaid wages are exempted in Colorado, with the possibility of individuals having a higher percentage exempt in the case of low income earners

• No wildcard exemption is currently allowed in Colorado

• A long list, specific list of personal property and household items up to various quantities and value are allowed under Colorado exemption laws as well

It is notable that this list is by no means comprehensive or applicable to any given Chapter 7 case, but rather, is just a general outline of the most notable and common exemption claims. For individual debtors seriously considering filing Chapter 7, the only reliable method of determining specifically what items of your property may be exempt will be through consulting with a bankruptcy lawyer in the state of Colorado. Consult with a Colorado bankruptcy lawyer to learn more about your legal rights and options to file Chapter 7, as well as how to maximize the benefit of your filing through state exemptions.