What Assets Are Exempt In A Colorado Bankruptcy?
One of the fears people have about bankruptcy is that they will “lose everything.” The reality is the opposite – bankruptcy can help you protect most of your assets.
Every case is unique. In a free consultation, I can gauge which of your assets should be safe and which assets (if any) you might forfeit. I have helped hundreds of Colorado residents keep their homes, their retirement nest eggs and other property through Chapter 7 and Chapter 13 bankruptcy.
Call me today at 303-731-6199 to discuss your debt situation and your options.
Protecting Property Through Bankruptcy Exemptions
In a Chapter 7 bankruptcy, all your unsecured debts are wiped out. In exchange, the bankruptcy court can liquidate your assets to pay your creditors.
However, under the Colorado bankruptcy exemptions, you may not have to forfeit any assets. You are allowed to keep:
- Retirement savings – 401(k) and pensions (unlimited) and IRAs up to $1.3 million
- Homestead – Up to $75,000 in equity in your house or up to $105,000 for certain individuals over age 60
- Vehicles – Up to $7,500 in equity in vehicles used to travel to work
- Personal property – $2,000 in clothing, $3,000 in household goods, $600 in food and gas, $2,500 in jewelry, $2,000 in books and family heirlooms, and all health aids, security deposits and personal injury proceeds
- Tools of trade – $30,000 in equipment and materials used in your primary occupation (or $10,000 for a secondary occupation) and $50,000 in livestock, seed or farm equipment
- Your next paycheck – 75% of unpaid wages or 30 times the federal minimum wage (whichever is greater)
- Benefits and support – Life insurance, workers’ comp, unemployment benefits, veterans benefits, disability benefits, child support and other public assistance
Can I Take The Federal Exemptions?
No. Some states allow you to choose between the state or federal list, but under Colorado law, you can only claim the state exemptions.
What If My Assets Are Not Exempt?
If any of your assets are not covered by the exemptions, or exceed the dollar limits, I can help you decide whether to forfeit that property, negotiate with the bankruptcy trustee to “buy back” that asset, or file for Chapter 13 relief instead.
In a Chapter 13 bankruptcy, you do not forfeit any property because you are agreeing to pay back part of your debts over time. Chapter 13 can help you avoid foreclosure or repossession if you are not current on your house or car payments.
- Also, see my Bankruptcy FAQ page
Take Action To Protect What You Own
As a bankruptcy lawyer for over 30 years, I can help you take full advantage of the Colorado bankruptcy exemptions while discharging the maximum amount of your debts.
Call the Law Firm of Ronald S. Dee at 303-731-6199 to arrange a free initial consultation, or email me today. My services are affordable, with payment plans available, and I can meet with you at my Littleton office or at a location convenient to you in the Denver area.
I am a debt relief agent. I help people file for bankruptcy relief under the U.S. Bankruptcy Code.