Bankruptcy Exemptions:
Colorado has opted out of the federal bankruptcy exemptions. Colorado residents must use the Colorado exemptions.
Colorado limits an exemption to a specified “value,” or simply what is worth. This is the fair market value (FMV) of the property after deducting any liens. Examples of liens are mortgages, car loans or judgements.
If the FMV is greater, than amount provided for in the “excemption” then that property can be sold by the bankruptcy trustee or you may be given the opportunity to purchase the “excess equity” and keep the property.. If the property is sold by the Trustee, you are entitled to a part of the sales proceeds equal to the exemption amount.
Colorado Exemptions
- Homestead $250,000, or $350,000 if the debtor, spouse, or a dependent living in the home is age 60 or older or disabled
- Personal property $2,000 in clothing, $2,500 in jewelry, $6,000 in household goods, and more
- Vehicle $1,5,000 aggregate value, up to two motor vehicles or bicycles; increases to $25,000 if debtor, spouse, or dependent is age 60+ or disabled
- Wages At least 80% of weekly disposable earnings .
- Pension/retirement Exempt
- Firearms: $1000.
- Depository accounts: $2500.
- Pension: %100.
- You should review all claims of exemptions with your attorney to ensure the claimed exemption is applicable and you may be double the exemptions in a joint filing.
Homestead Exemption
Colorado has a homestead exemption. After deducting for liens the first $75,000 from the sale of the property. This increases to $105,000 if the debtor, the debtor’s spouse, or a dependent of the debtor who lives in the home is at least 60 years old or disabled.
Vehicle Exemption
Two motor vehicles or bicycles kept and used by the debtor, up to an aggregate value of $15,00 are exempt in Colorado. This increases to $25,000 if the debtor’s spouse, or a dependent of the debtor is at least 60 years old or disabled. Snowmobiles, all-terrain vehicles, golf carts, watercraft, travel trailers, tent trailers, not exempt.
Personal Property Exemption
Examples of personal property of exempt include:Necessary clothing up to a value of $2,000.
- Household goods — such as furniture, dishes, appliances, musical instruments, and home electronics — to the extent of $6,000.
- Tools of the Trade. The stock in trade, supplies, fixtures, equipment, and other business property used to carry on the debtor’s gainful occupation. If the gainful occupation is the debtor’s primary gainful occupation, this exemption covers up to $60,000; or if is not your primary occupation, it covers up to $20,000 for “tools of the trade”.
- Watches, jewelry, and similar items up to a value of $2,500.
- Professionally prescribed health aids.
- These maybe doubled if a husband and wife file together.
Wages Exemption
80% of Disposable a wages are exempt. Disposable earnings are the sum of compensation for personal labor or services and funds held in or payable from any health, accident, or disability insurance, minus any amounts required by law to be withheld.
There are special exemptions provisions for active and former military members. Any money received as a pension, compensation, or allowance arising out of a person’s services in the armed forces during a time of war or armed conflict are exempt.
Pensions/Retirement Accounts Exemption
Any funds in any pension, retirement, or deferred compensation plan, including ERISA plans, IRAs, Roth IRAs, and 401(k) plans.