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  • An Overview of Colorado Bankruptcy Exemptions (Part 1)

    Colorado bankruptcy exemptions set the maximum values for homesteads, motor vehicles and other assets that debtors can keep when filing for bankruptcy.

    Colorado bankruptcy exemptions set the maximum values for homesteads, motor vehicles and other assets that debtors can keep when filing for bankruptcy.

    Bankruptcy exemptions dictate what property and assets debtors will be allowed to keep because these assets will not have to be included in the bankruptcy estate (and, therefore, will not have to be used to pay off creditors). Although some states will allow debtors to choose between using state or federal codes when it comes to bankruptcy exemptions, according to Colorado laws, everyone who files forChapter 7 or Chapter 13 bankruptcy in the state must use state statutes. While the laws covering Colorado bankruptcy exemptions are regularly updated, the following reflects these exemptions (and the allowable maximum values of them) per current Colorado laws:

    • Homestead or residential property – A debtor can claim up to $60,000 in equity of his home as being exempt from bankruptcy. If the debtor has a spouse or dependent who is elderly (older than 60 years old) and/or who is disabled, he can legally claim up to $90,000 in homestead bankruptcy exemptions.
    • Income – If a bankruptcy petitioner has a job and is earning an income, up to 75 percent of his earnings or up to 30 times the minimum weekly wage can be exempt from bankruptcy estates.
    • Motor vehicles – Debtors can claim up to $5,000 for one or more motor vehicles as a bankruptcy exemption. If the debtor is elderly or disabled or has an elderly or disabled spouse or dependent, up to $10,000 in motor vehicles can be exempt.

    It’s important to note that spouses who are jointly filing for bankruptcy can effectively double these exemptions, as the husband and the wife will be allowed to claim up to the maximum value for each of these bankruptcy exemptions (a practice that may be referred to as “doubling” exemptions).

    Colorado Bankruptcy Lawyers

    If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience and our dedication to our clients allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

    
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