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Colorado Bankruptcy Exemptions 2025: Protect Your Assets
Understanding Colorado Bankruptcy Exemptions
If you’re considering filing for bankruptcy in Colorado, understanding state-specific exemptions is crucial. These exemptions determine what property you can keep during Chapter 7 or Chapter 13 bankruptcy. Colorado opts out of federal exemptions, meaning residents must use the state’s generous protections for homes, vehicles, retirement accounts, and more. Attorney Martin Long is a former Trustee for the U.S. Bankruptcy Court. At LONG & LONG, our experienced Denver bankruptcy attorneys and Centennial bankruptcy lawyers help clients maximize these exemptions to safeguard their assets and achieve a fresh financial start.
Whether you’re facing overwhelming debt or need guidance on the bankruptcy process in Colorado, contact us today at 303-832-2655 for a free consultation in Denver or Centennial.
Why Bankruptcy Exemptions Matter
In Chapter 7 bankruptcy, non-exempt assets may be liquidated to pay creditors, but exemptions protect essential property. In Chapter 13 bankruptcy, exemptions influence your repayment plan. Colorado’s exemptions are adjusted periodically and can often be doubled for married couples filing jointly (unless noted otherwise). Note: These apply to cases filed in 2025; always consult a professional for personalized advice.
Below is a comprehensive list of Colorado bankruptcy exemptions based on current statutes.
Key Colorado Bankruptcy Exemptions for 2025
Use the table below for a quick overview or read the detailed sections for conditions.
| Category | Exemption Amount | Notes/Conditions |
| Homestead | Up to $250,000 in equity (home or mobile home) | Increases to $350,000 if filer, spouse, or dependent is 60+ or disabled. Sales proceeds exempt for 2 years. Spouses cannot double. |
| Motor Vehicle | Up to $15,000 in equity (up to 2 vehicles) | Increases to $25,000 if filer is 60+ or disabled. Excludes RVs, boats, ATVs. Tools of trade may apply for work vehicles. |
| Household Goods | Up to $6,000 | Includes furniture and appliances. Doubles for joint filers. |
| Clothing | Up to $2,000 | Doubles for joint filers. |
| Food & Fuel | Up to $600 | Doubles for joint filers. |
| Jewelry | Up to $2,500 | Doubles for joint filers. |
| Family Pictures & Books | Up to $2,000 | Doubles for joint filers. |
| Tools of the Trade | Up to $60,000 (primary occupation); $20,000 (secondary) | Includes inventory, equipment, books. Up to $3,000 for professional library. |
| Livestock & Agricultural Tools | Up to $100,000 | For farmers; includes animals, machinery. Spouses cannot double. |
| Health Aids | 100% exempt | Professionally prescribed. |
| Burial Sites | 100% exempt | For filer and dependents. |
| Pensions & Retirement | 100% exempt for most (e.g., 401(k)s, IRAs up to $1,512,350, public employee pensions) | Includes veterans’ benefits pensions. Federal rules apply for some. |
| Insurance | Varies: Life insurance up to $250,000 cash value; disability up to $5,000/month; fraternal benefits 100% | Proceeds exempt if policy restricts creditor use. Homeowners’ proceeds exempt up to homestead amount for 1 year. |
| Public Benefits | 100% exempt (e.g., unemployment, workers’ comp, crime victims’ compensation) | Must not commingle with other funds. Earned income tax credits also exempt. |
| Alimony & Child Support | 100% exempt | If kept separate from other assets. |
| Wildcard Exemption | None | N/A |
Homestead Exemption Details
Protect your primary residence or mobile home with up to $250,000 in equity. This rises to $350,000 for seniors or those with disabilities, making Colorado one of the more protective states for homes.
Vehicle and Tools Exemptions
Keep your car or truck safe with the $15,000 motor vehicle exemption ($25,000 for eligible filers). For business owners, the robust tools of the trade exemption cover essential equipment up to $60,000.
Personal Property and Other Exemptions
Everyday items like clothing, food, and household goods have specific limits, but most essentials are covered. Retirement accounts are fully protected to secure your future.
Doubling Exemptions for Married Couples
In joint filings, many exemptions (e.g., personal property) can be doubled for shared assets. However, homestead and agricultural exemptions cannot. Our Denver metro and Centennial bankruptcy lawyers at LONG & LONG can help you navigate these rules.
No Wildcard Exemption in Colorado
Unlike some states, Colorado does not offer a wildcard exemption for flexible asset protection. Focus on categorizing your property correctly.
Contact LONG & LONG for Bankruptcy Help
Bankruptcy exemptions can be complex, and mistakes could cost you valuable assets. Located in Denver, Colorado and Centennial, Colorado, and serving Aurora and the Front Range, LONG & LONG specializes in Colorado bankruptcy law. Call 303-832-2655 today to discuss your options with a trusted Denver bankruptcy attorney.
👉 Using the Colorado Homestead Exemption in Bankruptcy
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