As a Denver, Colorado bankruptcy attorney, I frequently hear from potential clients when they are stressed out and confused about their difficult financial situation. Many people have deep fears stemming from bad information…sometimes that bad information has been delivered to them by their creditors. During our initial bankruptcy consultation, I can lay many fears to rest, including the typical question, “Will I lose all my stuff in I file for bankruptcy protection?”
The simple answer is “no.” People struggling financially have options, and can generally protect a certain amount of property using the Colorado Bankruptcy Exemptions. That is, property listed below is out of reach for bankruptcy trustees in a Chapter 7 case. In over 95% of bankruptcy cases filed, consumers keep all of their property while discharging burdensome debt at the same time.
Here is a list of the most commonly used exemptions in Colorado:
Colorado’s homestead exemption allows individuals to protect up to $75,000 in home equity should they ultimately decide to file bankruptcy.
One or more motor vehicles, up to a value of $7,500
Property held in, or payable from, any qualifying pension or retirement plan
Necessary clothing, up to a value of $2,000
Jewelry and watches, up to a value of $2,500
Household goods, up to a value of $3,000
In many instances, married couples filing for bankruptcy protection can double these exemption amounts.
This is an incomplete list. A bankruptcy attorney can help consumers properly elect and plan for their available exemptions, recommend how and when to file their bankruptcy case, explain the bankruptcy process to set expectations, and select the proper type of relief for the specifics of their individual situation.
If you would like to speak with me during a free, initial, bankruptcy consultation, do not hesitate to send me a contact form to get the process started.