Denver Asset Protection Attorneys
Colorado Bankruptcy Exemptions Lawyers
The U.S. Bankruptcy Code applies in pretty much the same way across the country, with one important exception — the ability to protect assets through property exemptions. Each state has the choice of applying the federal exemptions schedule or using its own list of property values that will be protected from creditors in bankruptcy.
Contact a seasoned bankruptcy lawyer at Mile High Bankruptcy in Denver to learn how Colorado's exemptions list works to the advantage of Chapter 7 debtors. Our state has one of the most generous exemption laws in the country, so we very rarely see the case where our client needs to give property or cash to the trustee to divide among unsecured creditors.
Call 303.831.0733 to learn how you can benefit from property exemptions
Exemptions operate as a form of asset protection in bankruptcy. Especially in other states, the need to keep assets away from creditors essentially forces people into Chapter 13 when they'd prefer to file for relief under Chapter 7. That's because home equity exemptions elsewhere can be as low as $10,000, or equity in a car might only be exempt up to $1,500 or $2,000.
In Colorado, it's rare for our lawyers to work with clients whose property is worth more than the allowed exemptions. In other words, practically all of our clients can benefit from Chapter 7 relief — assuming eligibility under the means test — without worrying about paying the value of nonexempt assets to the trustee.
Bear in mind that bankruptcy exemptions cover the value of your equity in property, not the value of the property itself. What this means to our clients is that $50,000 of home equity might help you save a $300,000 house.
Bankruptcy Exemption and Asset Protection
Here are some examples of the equity in particular assets that you can protect in a Colorado bankruptcy:
- Equity in real estate up to $60,000; for people over 60 or who are disabled, up to $90,000
- Equity in a car or other form of primary transportation up to $5,000; if the vehicle is used by an elderly or disabled person, up to $10,000
- Tax-exempt retirement accounts up to $1,095,000
- ERISA-qualified benefits and other pensions without limit
- Household goods, clothing, books and other property up to specified limits
- Personal injury settlements or jury awards
- Business supplies and tools up to $20,000
- Farm vehicles and equipment up to $50,000
- Business partnership property
Colorado's exemption schedules help people use Chapter 7 as an important asset protection tool. To learn more about exemptions and how they can benefit you, contact an attorney at Mile High Bankruptcy in Denver for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.