Colorado Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Colorado — homestead, personal property, vehicle, wage, and retirement exemptions.
Colorado's exemption system
Colorado requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Colorado exemption amounts below control what you can protect.
Key Colorado exemptions
Homestead §38-41-201
$250,000 ($350,000 if owner or spouse is age 60+ or disabled). Must be occupied as principal residence. Must file homestead declaration for full protection. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §13-54-102(1)(e)
$6,000 in household goods; $2,000 in clothing; $600 in provisions and fuel. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §13-54-102(1)(j)
$15,000 in equity ($25,000 if elderly or disabled). This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §13-54-104
80% of disposable earnings (or amount exceeding 40× federal minimum wage), with higher protection for low-income debtors. This applies to wages already earned but not yet paid at the time of filing.
Retirement accounts §13-54-102(1)(s)
ERISA-qualified plans, IRAs (including Roth), PERA, and fire/police pensions are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §13-54-102(1)(i)
$60,000 in tools, library, equipment of profession or trade. This protects the equipment you need to earn a living.
Colorado exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Colorado limit | $250,000 ($350,000 if owner or spouse is age 60+ or disabled) §38-41-201 | $6,000 in household goods; $2,000 in clothing; $600 in provisions and fuel §13-54-102(1)(e) | Not available |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
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Related guides
- $250,000 ($350,000 if owner or spouse is age 60+ or disabled)
- Must be occupied as principal residence. Must file homestead declaration for full protection.
- $6,000 in household goods; $2,000 in clothing; $600 in provisions and fuel
- 80% of disposable earnings (or amount exceeding 40× federal minimum wage), with higher protection for low-income debtors