Colorado Bankruptcy exemptions

Colorado bankruptcy exemptions do not have any specific provisions for wildcard exemptions. The state laws do not also allow you to use federal set of exemptions instead of the state-specific exemptions. However, you can use the federal supplemental exemptions. Following is a brief rundown on which types of properties are allowed to be exempted in Colorado and to what extent.


You can exempt either a maximum of 30 times the federal minimum wage or at least 75% of your weekly earnings, whichever is higher. Here, it is important to note that it includes insurance and pension benefits.

Tools Of Trade

The following Colorado bankruptcy exemptions are allowed in this category.

- A maximum of $3000 worth of professional library
- Books, electronic equipment, machinery, supplies, fixtures, stock in trade, and other business materials and equipment – a maximum aggregate value of $10000
- 100% exemptions are allowed on military equipment for members of the National Guard
- Up to a total value of $25,000 can be exempted for the tools of trade used by an individual involved in agriculture; it includes seeds, equipment, tools, machinery, animals, and livestock.

Public Benefits

Certain types of public benefits can be exempted in full, such as Public assistance, Crime victim compensation, Earned income tax credits, Unemployment compensation, and Worker’s compensation benefits. Besides that, Colorado bankruptcy exemptions also allow 100% exemptions for Veteran’s benefits for those veterans who served in armed conflicts or war. Aid to aged, blind, and disabled is also exemptible in full value.

Personal Property

Personal assets and properties are exemptible as per the following provisions.

- Security deposits – 100%
- Recoveries for personal injury – 100%
- Proceeds from damaged exempt property – 100%
- A maximum of $600 for Fuel and food
- A maximum of $3000 for Household goods
- Burial plot are exemptible to the extent of one per family member
- Books and family pictures can also be exempted for a maximum value of $1500
- up to $1,000 of exemptions are allowed for Jewelry and other items of adornment
- You can also keep necessary clothing, but it must not exceed $1,500 in value.
- If you use bicycles or Motor vehicle for work, you can get the same exempted up to $3,000. For those who are over 65 years of age or disabled can exempt motor vehicles or bicycles up to $6000.


The Colorado bankruptcy exemptions for pension benefits are as follows.

- police officer and Firefighter pensions – 100%
- defined contribution plans and Public employee pensions – 100%
- Teacher’s pensions – 100%
- Benefits qualified under ERISA (Roth IRAs and IRAs): 100%
- Federal pension exemptions
- Pensions received by those veterans who served in war or armed conflict are also exemptible in full.


Money received as part of a Child support order and Property owned by business partnership are also 100% safe when a person gets bankrupt under chapter in the state of Colorado.


- The maximum value that can be exempted for Homeowner’s insurance proceeds is limited by the maximum homestead exemption amount for twelve months after received.
- Life insurance cash surrender is also exemptible up to $50,000, but it applies to those contributions that you have made at least 4 years before filing a bankruptcy petition.
- Either all of a lump sum or a maximum of $200 per month can be exempted from Disability benefits
- 100% Colorado bankruptcy exemptions are allowed for the Benefits from a fraternal benefit society or Group life insurance policy (or proceeds).
- If there is a clause in the life insurance policy contract that prohibits the use of the policy proceeds to pay off debts, 100% exemptions are allowed for such Life insurance proceeds


- Colorado allows the children and spouse of a deceased owner to use the homestead exemptions
- The different types of properties that the homestead exemptions can be used for include any manufactured home, house trailer, or mobile homes that you occupy
- The maximum value that can be exempted in this category is $90,000 for those debtors who are over 60 years of age or disabled. For others, the maximum limit of Colorado bankruptcy exemptions for homestead properties is $60000.

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One Response to “Colorado Bankruptcy exemptions”

  1. Kelvin says:

    Bankruptcy is a tough phase of one’s life. Colorado State does not give to freedom to use Federal set of exemptions but you can go for federal supplemental exemptions. For getting the best benefits from the laws of state it is very important to get the knowledge of your state specific laws regarding bankruptcy. Exemptions are available under the various categories of trade; it may differ from the low percentage to higher. Public benefits can also be exempted totally like crime victim compensation, unemployment compensation etc. Personal assets and properties are also fully exempted such as security deposits, recoveries for personal injury etc. Persons above the age group of 65 can get some more exemptions up on the vehicles. Pensioners can also get the benefit of 100 % exemptions. Pension of Police officer, teachers are fully exempted. If you received money as part of a child support order comes under the category of miscellaneous and is 100 % exempted. If you are eligible of Insurance policies 4 years before filling a bankruptcy petition it can be exempted up to a certain limit. Life insurance policy does not allow using it for paying the debts can be exempted 100 %. Homestead properties can also be exempted with in different categories. The maximum value which can be exempted under this option can be differing according to the age group.

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