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Colorado Bankruptcy Exemptions in detail

Colorado Bankruptcy Exemptions

The Colorado bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Colorado. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500. If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment. Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted. To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property. When you file bankruptcy in Colorado you may also use certain federal exemptions in addition to your Colorado exemptions. ASSET EXEMPTION DESCRIPTION LAW SECTION HOMESTEAD Real property, mobile home or manufactured home you occupy to $60,000 or $90,000 if occupied by an elderly (60+) or disabled debtor or spouse. 38-41-201, 38-41-201.6, 38-41-203, 38-41-207 Spouse or child of deceased owner may claim homestead exemption 38-41-204 House trailer or coach used as residence to $3,500 13-54-102(1)(o)(I) Mobile home used as residence to $6,000 13-54-102(1)(o)(II) INSURANCE Disability benefits to $200 per month; if receive lump sum, entire amount exempt 10-8-114 Fraternal benefit society benefits 10-14-122 Group life insurance policy or proceeds 10-7-205 Homeowners' insurance proceeds for 1 year after received, to homestead exemption amount 38-41-209 Life insurance 10-7-106; 13-54-102(1)(l)(B) Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors 10-7-106 Life insurance - cash surrender value for writs issued against the insured – 25,000/50,000 13-54-102(1)(l)(A) MISC. Child support if recipient does not mix with other money or deposits into separate account for the benefit of the child 13-54-102.5 Property of business partnership 7-60-125 PENSIONS ERISA-qualified benefits, including IRAs 13-54-102(1)(s) Firefighters 31-10-412, 31-30-518 Police officers 31-30-313, 31-31-616 Public Employees 24-51-212 Teachers 22-64-120 Veterans 13-54-102(1)(h), 13-54-104 PERSONAL PROPERTY 1 burial plot per person 13-54-102(1)(d) Clothing to $1500 13-54-102(1)(a) Food and Fuel to $600 13-54-102(1)(f) Health aids 13-54-102(1)(p) Household goods to $3,000 total 13-54-102(1)(e) Jewelry and articles of adornment to $1000 total 13-54-102(1)(b) Motor vehicles used for work to $3,000 ; to $6,000 to get medical care, if elderly or disabled 13-54-102(j)(I), (II) Personal injury recoveries, unless debt related to injury 13-54-102(1)(n) Pictures and books to $1500 13-54-102(1)(c) Proceeds for damaged exempt property 13-54-102(1)(m) Security deposit 13-54-102(1)(r) The full amount of any federal or state earned income tax credit refund 13-54-102(1)(o)

Professionally prescribed health aids for the debtor or a dependent of the debtor 13-54-102(1)(p) PUBLIC BENEFITS Aid to blind, aged, disabled, AFDC 26-2-131 Crime victims' compensation 13-54-102(1)(q), 24-4.1-114 Unemployment compensation 8-80-103 Veterans' benefits for veteran, spouse or child if veteran served in war 13-54-102(1)(h) Workers' compensation 8-42-124 TOOLS OF TRADE Horses, mules, wagons, carts, machinery, harness and tools of farmer to $25,000 total (same $25,000 limit for debtor or debtor plus spouse) 13-54-102 (1)(g) Library of professional to $3,000 or stock in trade, supplies, fixtures, machines, tools, maps, equipment, books and business materials to $10,000 total 13-54-102 (1)(i), (k) Livestock and poultry of farmer to $3,000 13-54-102 (1)(g) WAGES Minimum 75% of earned but unpaid wages, pension payments 13-54-104 WILDCARD NONE

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