COLORADO HOMESTEAD EXEMPTION IN BANKRUPTCY: FAQS
Colorado bankruptcy exemptions allow the people who are pursuing bankruptcy to retain some of their assets through the process. While these bankruptcy exemptions can apply to various types of assets – including cash, personal property and even insurance policies, they can also protect people’s homes in some cases.
To shed some light on the details of this exemption, below, we have answered some common questions about the homestead exemption in Colorado bankruptcy.
Q – How much is the Colorado homestead exemption?
A – A homeowner filing for bankruptcy in Colorado can exempt as much as $60,000 of his home (or other covered property) per the homestead exemption. If the homeowner (or a dependent or spouse of the homeowner) is older than 60 and/or is disabled, this exemption can be increased to $90,000.
Q – Can this exemption be used in both Chapter 7 and Chapter 13 bankruptcies?
Q – Can the homestead exemption be doubled for married couples?
A – No, although other bankruptcy exemptions in Colorado can be doubled for couples filing for bankruptcy jointly (i.e., together), this does not apply to the homestead exemption.
Q – Can I use federal homestead exemptions instead of the Colorado homestead exemption?
A – No, per Colorado bankruptcy laws, all bankruptcy petitioners in the state are required to use the Colorado exemptions, not the federal exemptions.
Q – What else should I know about the Colorado homestead exemption?
A – While there may be a lot of the things to understand about the Colorado homestead exemption, here are some important highlights that are also essential to be aware of:
In order for the homestead exemption to apply, the petitioner has to be occupying (i.e., living in) the home or residence.
The homestead exemption can apply to the proceeds from the sale of a property.
If the homeowner passes away, the spouse and children of that homeowner can still use the Colorado homestead exemption for that residence (if needed).
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