Colorado State Bankruptcy Laws

What are the Colorado Bankruptcy Exemptions?

ColoradoColorado law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a Colorado bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Colorado. In general, the major Colorado bankruptcy exemptions include:

Real Estate (Homestead)
Up to $45,000 in equity of houses, mobile homes, manufactured homes, trailers, and trailer coaches occupied by the owner may be protected.
One or more motor vehicles or bicycles in the aggregate value of $3,000 may be protected ($6,000 if the debtor is elderly or disabled).
Other Property
$1,500 exemption for clothing; $1,000 exemption for jewelry; and $3,000 exemption for household goods used by the debtor or the debtor’s dependents.
View the complete list of Colorado bankruptcy exemptions

Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.

Which state’s exemption laws apply in your bankruptcy?

ColoradoGenerally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.

If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.

If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.

Is Colorado a community property state?

No, Colorado is not a community property state. Because it is not a community property state, you will be responsible for your spouse’s debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.

Did your senator vote in favor of the new bankruptcy laws?

Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?

Allard (R-CO) – YEA
Salazar (D-CO) – YEA

Colorado Bankruptcy Court Locations:

U.S. Custom House
721 19th Street
Denver, CO 80202-2508
(720) 904-7300

Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.

Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.

Colorado Bankruptcy Attorney Locations:

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Natalie Conatser

Author: Natalie Conatser

Natalie is a finance professor who writes all about finance as a blog contributor. She is a board certified accountant and also knows a thing or two about debt and avoiding bankruptcy. Natalie plans on touring the US to speak about personal finance.

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