Colorado Bankruptcy Exemptions: Homestead, Vehicle & More

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.

This is general information, not legal advice. Exemption dollar figures change and applying them is fact-specific — talk to a Colorado bankruptcy attorney.

Exemptions decide what property you keep in bankruptcy. Colorado opted out of the federal bankruptcy exemptions (C.R.S. § 13-54-107), so Colorado filers must use Colorado’s exemptions. Several of these figures were raised in 2022, so always confirm current amounts.

Homestead — up to $250,000

Colorado’s signature protection is the homestead exemption: equity in your home is exempt up to $250,000, or up to $350,000 if the owner, spouse, or a dependent is elderly or disabled (confirm current) (C.R.S. § 38-41-201).

Motor vehicle

A motor vehicle is exempt up to $15,000, or up to $25,000 if the owner or a dependent is elderly or disabled (confirm current) (C.R.S. § 13-54-102).

Household goods, clothing, and tools of the trade

Colorado also exempts everyday property — household goods, clothing, and tools of the trade — each up to its own statutory limit (confirm current) (C.R.S. § 13-54-102).

Wage garnishment limits

Beyond what you keep in bankruptcy, Colorado limits how much of your earnings creditors can garnish (C.R.S. § 13-54-104).

These exemptions are why most Chapter 7 filers keep their property, and they also shape how much unsecured creditors are paid in a Chapter 13 plan.

To get matched with a local Colorado bankruptcy attorney, connect with a lawyer.

Frequently asked questions

Can I use the federal bankruptcy exemptions in Colorado?

No. Colorado opted out of the federal exemptions (C.R.S. § 13-54-107), so Colorado filers must use Colorado's exemptions instead.

How much home equity does Colorado protect?

The homestead exemption protects up to $250,000 in equity, or up to $350,000 if the owner, spouse, or a dependent is elderly or disabled (C.R.S. § 38-41-201; confirm current — several exemptions were raised in 2022).

Can I keep my car?

Colorado exempts a motor vehicle up to $15,000, or up to $25,000 if the owner or a dependent is elderly or disabled (C.R.S. § 13-54-102; confirm current).

Related guides

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.

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.

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.

Colorado Bankruptcy Exemptions