Will I Lose My Home If I File for Bankruptcy?

Not necessarily, as whether or not you can retain your home through a Colorado bankruptcy case will depend on a number of factors. Some of these include:

  • Whether you take advantage of the Colorado homestead exemption
  • The value of your home/property.

Clarifying this answer a bit more, the following presents some of the most important facts to know about the Colorado homestead exemption for Chapter 7 bankruptcy cases.

Although the information below is helpful, please feel free to contact an experienced Denver bankruptcy attorney at Garcia & Gonzales, P.C. when you need more specific information and insight regarding your debt issues and/or bankruptcy case. Our lawyers are ready to help you secure the financial fresh start you deserve.

The Colorado Homestead Exemption for Chapter 7 Bankruptcy: The Facts

  • The amount that can be exempt from the bankruptcy estate – Bankruptcy petitioners who are younger than 60 can exempt up to $75,000 of the equity in their home. Here, it should be noted that this is the only exemption that can be applied to residential assets (i.e., the federal exemption cannot be applied in Colorado bankruptcy cases).
    • NOTE: This exemption can only be applied once to a given bankruptcy case (not once per home owned). Additionally, it will only usually be applicable to the home in which the petitioner is living; in other words, this exemption cannot generally be applied to rental properties (i.e., homes a petitioner owns but leases out).
  • When the exemption amount may be increased – The Colorado homestead exemption can be increased to as much as $115,000 for certain bankruptcy petitioners – namely those who are 60 or older.
    • NOTE: While some bankruptcy exemptions may be doubled for married couples pursuing a joint bankruptcy case, this doubling does NOT apply for the homestead exemption. In other words, joint petitioners will only qualify for the increased amount if at least one of them is 60 years old (or older).
  • What qualifies as a “homestead” – In general, the homestead exemption can be applied to any real property in or at which the bankruptcy petitioner lives. Examples include (but may not be limited to) a single-family home, a townhouse, a condo, a mobile home, and a trailer.
    • NOTE: The homestead exemption can also apply to the proceeds of the sale of the home. If the exemption is applied in this manner, it will typically be valid for two years (i.e., the proceeds will be exemption for up to two years after they have been received).

Keeping Your Home through Bankruptcy: The Bottom Line

When it comes to retaining your home through a Chapter 7 bankruptcy case in Colorado, the bottom line is that you should NOT assume that you will have to forfeit your house if you move forward with bankruptcy. Instead, it’s best to consult a bankruptcy lawyer who can review the details of your situation and help you take the right steps in the bankruptcy planning process in order to preserve as many of your precious assets as possible – including potentially your home.

Let’s Talk about Your Best Debt Relief Options: Contact a Denver Bankruptcy Attorney at Garcia & Gonzales, P.C. Today

If you are struggling with significant debt, it’s time to contact an experienced Denver bankruptcy attorney at Garcia & Gonzales, P.C. With more than 50 years of combined legal experience, our trusted lawyers have the insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.

To learn more about your best debt relief options, call us at or email us using the contact form on this page.

When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.

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