Bankruptcy: Colorado Homestead Exemption
The Colorado Homestead Law: (1) prevents a forced sale of a home to meet demands of creditors; (2) provides a surviving spouse with shelter; (3) provides an exemption from property taxes; and (4) applies to ONE primary residence.
The Colorado Homestead Exemption allows you to exempt up to $75,000 of your real property value when filing for bankruptcy.
There are two primary types of bankruptcy for individuals:
Chapter 7 bankruptcy, which is typically applied to lower income individuals and involves a liquidation of your assets to pay off debt; and
If you have equity in your home greater than the exemption amount, the difference is potentially open for legal claim from creditors.
The Colorado Homestead Exemption protection applies to:
Single family detached homes
Citizens over the age of 60, or who have a disability, receive an exemption of $105,000.
The exemption amount does NOT double for married couples.
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