Bankruptcy in Colorado
Bankruptcy is federal law, but Colorado controls the exemptions that decide what property you keep. This hub explains how Chapter 7 and Chapter 13 work, the automatic stay that stops collection, and why Colorado filers use Colorado's own exemptions — then links guides for each topic.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. Bankruptcy turns on your specific finances — talk to a Colorado bankruptcy attorney about your situation.
Bankruptcy is governed by federal law (the U.S. Bankruptcy Code, Title 11), but Colorado controls the exemptions that decide what property you can protect.
Where Colorado cases are filed
Bankruptcy cases are filed in federal bankruptcy court, not state court. Colorado is a single federal judicial district, so cases are filed in the U.S. Bankruptcy Court for the District of Colorado (U.S. Bankruptcy Court, District of Colorado).
Chapter 7 vs. Chapter 13
The two most common consumer chapters are different paths:
- Chapter 7 is liquidation — a trustee can sell nonexempt property to pay creditors, and you receive a discharge of most unsecured debts (11 U.S.C. § 727). You must pass the means test.
- Chapter 13 is a repayment plan for people with regular income — you repay some or all of your debts over 3 or 5 years and can catch up on a mortgage or car (11 U.S.C. § 1322).
The automatic stay
The moment you file, the automatic stay kicks in (11 U.S.C. § 362) — an immediate halt to most collection, including lawsuits, wage garnishment, repossession, and foreclosure.
Colorado exemptions (the opt-out)
Federal law lets states “opt out” of the federal exemption list, and Colorado did (C.R.S. § 13-54-107). So Colorado filers use Colorado’s exemptions — most notably the homestead exemption of up to $250,000 (confirm current), which protects equity in your home. Colorado also exempts a motor vehicle, household goods and clothing, tools of the trade, and limits wage garnishment.
The guides
Pick your topic below. To get matched with a local Colorado bankruptcy attorney, connect with a lawyer.
Guides
- The Automatic Stay & Discharge in Colorado
Filing bankruptcy triggers the automatic stay (11 U.S.C. § 362), an immediate halt to most collection — lawsuits, wage garnishment, repossession, and foreclosure. A discharge (11 U.S.C. § 524, § 727) permanently bars collecting discharged debts, but some debts are non-dischargeable (11 U.S.C. § 523), including most recent taxes, student loans absent undue hardship, child support and alimony, and debts from fraud.
- Chapter 13 Bankruptcy in Colorado
Chapter 13 is a court-supervised repayment plan: 3 years if your income is below the state median, up to 5 years if at or above the median, and never longer than 5 years (11 U.S.C. § 1322(d), § 1325). It lets people cure a mortgage or car default and keep their property.
- Chapter 7 Bankruptcy in Colorado
Chapter 7 is liquidation bankruptcy: a trustee can sell nonexempt property to pay creditors, and the individual debtor receives a discharge of most unsecured debts (11 U.S.C. § 727). It requires the means test and credit counseling. Because Colorado's exemptions protect typical assets, most Colorado filers keep their property.
- Colorado Bankruptcy Exemptions
Colorado opted out of the federal bankruptcy exemptions (C.R.S. § 13-54-107), so Colorado filers use Colorado exemptions. Key protections include a homestead up to $250,000 (or $350,000 if elderly or disabled), a motor vehicle up to $15,000 (or $25,000 if elderly or disabled), household goods, clothing, tools of the trade, and limits on wage garnishment. Several figures were raised in 2022; confirm current.
- The Chapter 7 Means Test in Colorado
The Chapter 7 means test (11 U.S.C. § 707(b)) compares your income to the median income for your household size in Colorado. Below median you generally qualify for Chapter 7; above median, a disposable-income calculation may create a presumption of abuse. Colorado median-income figures are updated periodically by the U.S. Trustee.
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