Bankruptcy exemptions protect certain property from being liquidated (sold off) when people file for Chapter 7 bankruptcy. While some states allow people to choose between federal and state bankruptcy exemptions, in Colorado, people are required to only use Colorado bankruptcy exemptions when filing for Chapter 7.
These exemptions apply to various type of property, and each exemption comes with its own specific rules. In some cases, the maximum values that have been set for exemptions can be doubled when married couples file for bankruptcy jointly (i.e., together). In other cases, exemptions are considered to apply to a “household” and, therefore, cannot be doubled even when people file jointly.
Here is a look at some of the more common exemptions that people can benefit from when filing for Chapter 7 bankruptcy in Colorado:
- The homestead exemption – This allows for up to $60,000 in real property to be exempt from Chapter 7 proceedings. Real property can include a house, condo or mobile home, and a person has to be residing at the property in order to qualify for this exemption. If the person filing for bankruptcy (or his spouse or a dependent) is elderly (i.e., older than 60 years old) or disabled, then this exemption allows for up to $90,000 in real property to be exempt from the bankruptcy.
- The motor vehicle exemption – Up to $5,000 in cars, trucks or other motor vehicles can be exempt from Chapter 7 bankruptcies in Colorado. For people who are elderly, disabled or have spouses or dependents who are elderly or disabled, this exemption increases to $10,000.
- The exemption for insurance benefits – While the proceeds from life insurance (including group life insurance policies) are entirely exempt (i.e., 100 percent exempt), up to $200 per month in insurance benefits for illness or disability may also be exempt from Chapter 7 bankruptcies.
- Personal property exemptions – Various personal property can also be exempt from Chapter 7 bankruptcies. Some of the specific exemptions for this property include:
- Up to $2,000 in jewelry
- Up to $3,000 in domestic items (like, for instance, home appliances)
- Up to $1,500 in clothes
- Up to $600 in food and fuels.
It’s important to note that Colorado bankruptcy exemptions can be updated or adjusted at any time by the state legislature and that there may be additional exemptions not mentioned herein that people can take advantage of (depending on their specific financial and personal situations). Therefore, they should consult with Denver Bankruptcy Attorney Arthur Lindquist-Kleissler for more specific information and advice regarding 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 Colorado bankruptcy exemptions, 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). From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to:
- Maximize utilization of Colorado Bankruptcy Law, including Colorado bankruptcy exemptions
- Effectively guide his clients through bankruptcy
- Help them achieve the best possible outcomes to their cases
- Help them resolve their cases as efficiently and favorably as possible.
Contact Us for a Free Consult
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.