When filing for Chapter 7 bankruptcy, the Colorado homestead exemption can protect people’s homes from being sold off to pay their creditors if there is no more than a specific amount of equity in the home.
Specifically, Colorado bankruptcy laws stipulate that:
- People can keep their homes (or property covered by the homestead exemption) as long as the equity in their home does not exceed $60,000.
- The maximum equity a person can have in his home and still keep it under the Colorado homestead exemption increases to $90,000 if the petitioner is elderly (i.e., 60 years old or older) or disabled (or if his spouse or a dependent is elderly or disabled).
- The homestead exemption cannot be doubled even if spouses are filing for bankruptcy jointly.
- Federal Bankruptcy Exemptions cannot be used in place of the Colorado exemptions.
Additional Elements of the Colorado Homestead Exemption
Some of the additional elements of the Colorado homestead exemption include that:
- A person has to be living in the home in order for that property to qualify for exemption.
- In addition to a house, real property like condos, mobile homes or trailers can also qualify for the homestead exemption.
- If the property is sold, then the proceeds of the sale can also qualify for exemption (with the exemption amount being up to either $60,000 or $90,000, depending on which applies). The exemption for these proceeds will last for two years.
- The spouse and dependents of a deceased homeowner may also qualify for this exemption.
It’s important to point out that the scope of these exemptions can be changed from year to year and that there are other fine points associated with the Colorado homestead exemption that may apply to specific situations. As a result, it’s crucial that people filing for Chapter 7 consult with Denver Bankruptcy Attorney Arthur Lindquist-Kleissler for specific information about how the homestead exemption applies to their case.
Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
If you are preparing to file Chapter 7 bankruptcy and would like to know more how you can benefit from the Colorado homestead exemption, don’t hesitate to contact Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler. He is ready to help you figure out your best options for resolving your debt while keeping as much of your property as possible.
For more than 34 years, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services when it comes to debt relief and bankruptcy (including civil litigation matters associated with bankruptcy).
This means that Mr. Lindquist-Kleissler can always be counted on to bring a fresh perspective to his clients’ bankruptcy matters and to examine non-traditional options for their cases. Regardless of the specific services provided, one of the factors that never changes is Mr. Lindquist-Kleissler’s commitment to helping each of his clients resolve their case as efficiently and favorably as possible.
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For a free 30-minute consult and a free bankruptcy packet, contact us by calling (303) 691-9774, or email us using the form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.