The Colorado bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Colorado. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Colorado you may also use certain federal exemptions in addition to your Colorado exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Real property, mobile home or manufactured home you occupy to $60,000 or $90,000 if occupied by an elderly (60+) or disabled debtor or spouse. | 38-41-201, 38-41-201.6, 38-41-203, 38-41-207 |
Spouse or child of deceased owner may claim homestead exemption | 38-41-204 | |
House trailer or coach used as residence to $3,500 | 13-54-102(1)(o)(I) | |
Mobile home used as residence to $6,000 | 13-54-102(1)(o)(II) | |
INSURANCE | Disability benefits to $200 per month; if receive lump sum, entire amount exempt | 10-8-114 |
Fraternal benefit society benefits | 10-14-122 | |
Group life insurance policy or proceeds | 10-7-205 | |
Homeowners' insurance proceeds for 1 year after received, to homestead exemption amount | 38-41-209 | |
Life insurance | 10-7-106; 13-54-102(1)(l)(B) | |
Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors | 10-7-106 | |
| Life insurance - cash surrender value for writs issued against the insured – 25,000/50,000 | 13-54-102(1)(l)(A) | |
MISC. | Child support if recipient does not mix with other money or deposits into separate account for the benefit of the child | 13-54-102.5 |
Property of business partnership | 7-60-125 | |
PENSIONS | ERISA-qualified benefits, including IRAs | 13-54-102(1)(s) |
Firefighters | 31-10-412, 31-30-518 | |
Police officers | 31-30-313, 31-31-616 | |
Public Employees | 24-51-212 | |
Teachers | 22-64-120 | |
Veterans | 13-54-102(1)(h), 13-54-104 | |
PERSONAL PROPERTY | 1 burial plot per person | 13-54-102(1)(d) |
Clothing to $1500 | 13-54-102(1)(a) | |
Food and Fuel to $600 | 13-54-102(1)(f) | |
Health aids | 13-54-102(1)(p) | |
Household goods to $3,000 total | 13-54-102(1)(e) | |
Jewelry and articles of adornment to $1000 total | 13-54-102(1)(b) | |
Motor vehicles used for work to $3,000 ; to $6,000 to get medical care, if elderly or disabled | 13-54-102(j)(I), (II) | |
Personal injury recoveries, unless debt related to injury | 13-54-102(1)(n) | |
Pictures and books to $1500 | 13-54-102(1)(c) | |
Proceeds for damaged exempt property | 13-54-102(1)(m) | |
Security deposit | 13-54-102(1)(r) | |
| The full amount of any federal or state earned income tax credit refund | 13-54-102(1)(o) | |
| Professionally prescribed health aids for the debtor or a dependent of the debtor | 13-54-102(1)(p) | |
PUBLIC BENEFITS | Aid to blind, aged, disabled, AFDC | 26-2-131 |
Crime victims' compensation | 13-54-102(1)(q), 24-4.1-114 | |
Unemployment compensation | 8-80-103 | |
Veterans' benefits for veteran, spouse or child if veteran served in war | 13-54-102(1)(h) | |
Workers' compensation | 8-42-124 | |
TOOLS OF TRADE | Horses, mules, wagons, carts, machinery, harness and tools of farmer to $25,000 total (same $25,000 limit for debtor or debtor plus spouse) | 13-54-102 (1)(g) |
Library of professional to $3,000 or stock
in trade, supplies, fixtures, machines, tools, maps, equipment, books
and business materials to | 13-54-102 (1)(i), (k) | |
Livestock and poultry of farmer to $3,000 | 13-54-102 (1)(g) | |
WAGES | Minimum 75% of earned but unpaid wages, pension payments | 13-54-104 |
WILDCARD | NONE |
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For more information on filing bankruptcy in Colorado explore Colorado Bankruptcy Law.
