COLORADO BANKRUPTCY LAW

Colorado Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Colorado Bankruptcy Statistics: In Colorado, in 2009, 28,304 bankruptcies were filed. Business bankruptcies accounted for 1,421 or 5.02% and personal bankruptcies accounted for 26,883 or 94.98% of the total filings.

Colorado State Bankruptcy Exemptions

Homestead

The home (“homestead”) exemption is limited to $60,000 if the debtor owns or occupies the property; and, up to $90,000 if the debtor, debtor’s spouse, or debtor’s dependent is over 60 years old or is disabled. Colorado defines “homestead” to include real property, mobile homes, manufactured homes and house trailers. The deceased homeowner’s spouse and children may also take a homestead exemption. In addition, proceeds from the sale of a residence are exempt for two years if they are not commingled with other funds.

Personal Property

The following expenses or items are exempt in their entirety in Colorado:

1. Security deposits
2. Proceeds from damaged exempt property
3. Prescribed health aids for the debtor or a debtor’s dependent
4. Recoveries for personal injury

The following expenses or items are exempt up to a specified limit in Colorado:

1. Motor Vehicles or bicycles used for work are limited to $3,000, or up to $6,000 if the debtor or a dependent is disabled or over 65
2. Burial plots, are limited to 1 per family member
3. Fuel and food are limited to $600
4. Household goods are limited to $3,000
5. Books and family pictures are limited to $1,500
6. Clothing is limited to $1,500
7. Jewelry is limited to $1,000

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing for bankruptcy in Colorado:

1. Public employees
2. lTeachers
3. Firefighters
4. Police officers
5. Veterans

The following pension types are exempt or partially exempt when filing for bankruptcy in Colorado:

1. Federal pension exemptions
2. ERISA qualified benefits (IRAs and Roth IRAs)

Insurance

The following insurance types are entirely or partially exempt when filing for bankruptcy in Colorado:

1. Life insurance cash surrender is limited to $50,000 for contributions made at least 48 months prior to debtor’s filing for bankruptcy
2. Disability benefits are limited to $200 per month, or all at once in a lump sum
3. Homeowner’s insurance proceeds are limited to the homestead exemption amount for 1 year after received
4. Fraternal society benefits
5. Life insurance proceeds to the beneficiary (if there is a clause prohibiting the use of proceeds to pay creditors of the beneficiary)
6. Group life insurance policy/proceeds

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Colorado:

1. Crime victims’ compensation
2. Unemployment compensation
3. Workers’ compensation
4. Veterans’ benefits-including for spouse and dependents
5. Earned income tax credits
6. Public assistance
7. Aid to the disabled, the blind, and the elderly

Tools of the trade

This is a separate exemption. The following items have been considered tools of the trade in the state of Colorado:

1. For members of the National Guard--all the equipment they must keep, including arms, uniforms, and equipment
2. For professionals—libraries are exempt up to $3,000
3. For businesses--stock in trade, fixtures, supplies, machinery, equipment, books, and other business materials are exempt up to $10,000
4. For persons involved in agriculture, livestock and animals—machinery, tools, equipment and seeds are exempt up to $25,000

Wages

In Colorado, the greater of 75% or more of weekly earnings, or thirty times the federal minimum wage, including pensions and insurance benefits is exempt.

Miscellaneous: Property owned by a business partnership.

Wildcard: No.

Federal Exemptions: No, debtors are not allowed to take federal exemptions when filing for bankruptcy in Colorado.

Colorado Bankruptcy Court:

United States Bankruptcy Court, District of Colorado