Filing for bankruptcy can provide people with a financial fresh start. While debtors may have to liquidate some assets (in Chapter 7 bankruptcy) to cover some outstanding debts, the good news is that Colorado law provides certain “exemptions,” allowing bankruptcy petitioners to retain some assets through the process.
Uncovering more details about these laws, the following features answers to some of the most common questions about Colorado bankruptcy exemptions. When you need more answers – and helpful, uncomplicated advice – regarding your best debt relief options, simply contact a Colorado Springs bankruptcy attorney at Kinnaird & Kinnaird PC.
Q – What types of assets do Colorado bankruptcy exemptions cover?
A – A number of different assets are protected by Colorado bankruptcy exemptions, including (but not necessarily limited to):
- Homes and/or real estate
- Motor vehicles
- Business assets
- Certain income, such as veterans’ benefits, restitution (from a crime), unemployment benefits and certain workers’ compensation benefits
- Some insurance benefits, such as life insurance benefits and disability insurance benefits
- Personal property, like jewelry, clothing, household furniture and electronic equipment
- Work-related tools.
The exemption limits for each of these assets varies.
Q – How much can be exempt for a home and vehicle?
A – Colorado law allows bankruptcy petitioners to exempt up to $75,000 of a home, a trailer, a condo or other property qualifying as a ‘homestead.’ This exemption can be as much as $105,000 for petitioners who are 60 (or older) and/or who are disabled or have a disabled spouse or child.
In terms of motor vehicles, Colorado law allows petitioners to exempt up to $7,500 for cars, trucks, bicycles or other motor vehicles. This goes up to $12,500 for petitioners who are at least 60 years old and/or who are disabled or have a disabled spouse or child.
Q – When can Colorado bankruptcy exemptions be doubled?
A – Some exemptions – like the motor vehicle exemption, for instance – may be doubled when spouses file for bankruptcy together (i.e. file a joint bankruptcy case). Please understand, however, that not all exemptions can be doubled for joint bankruptcy cases, so it’s best to consult a lawyer to find out whether filing for bankruptcy jointly (or individually) will be the best way to protect your interests.
Q – Can I choose to use federal bankruptcy exemptions (instead of Colorado bankruptcy exemptions)?
A – No. Colorado law requires any bankruptcy petitioner in the state to use the state-set bankruptcy exemptions. Federal exemptions cannot be used.
Get More Answers: Contact a Colorado Springs Bankruptcy Attorney at Kinnaird & Kinnaird PC
To find out your best options for resolving serious debt issues, contact a Colorado Springs bankruptcy attorney at Kinnaird & Kinnaird PC by calling (719) 520-0003 or by emailing us via the contact form on this page.
Applying decades of experience to every case we handle, the trusted attorneys at Kinnaird & Kinnaird PC are a close-knit, collaborative group who can help you protect your interests while helping you obtain real relief from debt.
From offices based in Colorado Springs, we provide the highest quality legal services to people throughout El Paso County and the state of Colorado.