Colorado

Exemptions or Assets that can be kept in a Bankruptcy
$45,000 in equity in your home or sale proceeds if sold within the year prior to bankruptcy;
$25,000 - Farm machinery, tools, livestock
$3,000 - Household goods;
$1,000 - jewelry and watches;
$25,000 - Cash surrender value of an insurance policy;
$3,000 in equity in motor vehicle or a bicycle; $6,000 if elderly or disabled;
$1,500 - Personal books, family pictures;
$3,000 - Professional library;
$600 - Provisions and fuel;
$10,000 in things you need for your job (tools, books, etc.);
$1,500 - Wearing apparel;
any amount in an IRA, 401(k), or pension plan;
your right to receive certain benefits such as social security, unemployment compensation, veteran's benefits, public assistant, and pensions * regardless of the amount.

Does the new law change any of this?

http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0

13-54-102. Property exempt.
Statute text
(1) The following property is exempt from levy and sale under writ of attachment or writ of execution:

(a) The necessary wearing apparel of the debtor and each dependent to the extent of one thousand five hundred dollars ($1,500) in value;

(b) Watches, jewelry, and articles of adornment of the debtor and each dependent to the extent of one thousand dollars ($1,000) in value;

(c) The library, family pictures, and school books of the debtor and the debtor's dependents to the extent of one thousand five hundred dollars ($1,500) in value; except that this paragraph (c) shall not apply to any such property constituting all or part of the stock in trade of the debtor;

(d) Burial sites, including spaces in mausoleums, to the extent of one site or space for the debtor and each dependent;

(e) The household goods owned and used by the debtor or the debtor's dependents to the extent of three thousand dollars ($3,000) in value;

(f) Provisions and fuel on hand for the use or consumption of the debtor or the debtor's dependents to the extent of six hundred dollars ($600) in value;

(g) (I) Except as otherwise provided in subparagraph (II) of this paragraph (g), in the case of every debtor engaged in agriculture as the debtor's principal occupation, including but not limited to farming, ranching, dairy production, and the raising of livestock or poultry, all livestock, poultry, or other animals, and all tractors, farm implements, trucks used in agricultural operations, harvesting equipment, seed, and agricultural machinery and tools in the aggregate value of twenty-five thousand dollars ($25,000).

(II) Only one exemption in the aggregate value of twenty-five thousand dollars ($25,000) shall be allowed for a debtor and his or her spouse under subparagraph (I) of this paragraph (g). In the event that property is claimed as exempt by a debtor or his or her spouse under subparagraph (I) of this paragraph (g), no exemption shall be allowed for such debtor or his or her spouse under paragraph (i) of this subsection (1).

(h) Except for amounts due under court-ordered support of children or spouse which are subject to the exemption provisions of section 13-54-104, all money received by any person as a pension, compensation, or allowance for any purpose on account or arising out of the services of such person as a member of the armed forces of the United States in time of war or armed conflict, and whether in the actual possession of the recipient thereof or deposited or loaned by him, and a like exemption to the unremarried widow or widower and the children of such person who receive a pension, compensation, or allowance of any kind from the United States on account or arising out of such service by a deceased member of such armed forces; and when a debtor entitled to exemption under this paragraph (h) dies or leaves his family said exemption shall extend to the dependents of said debtor;

(h.5) The articles of military equipment personally owned by members of the National Guard;

(i) The stock in trade, supplies, fixtures, maps, machines, tools, electronics, equipment, books, and business materials of any debtor used and kept for the purpose of carrying on any gainful occupation in the aggregate value of ten thousand dollars ($10,000);

(j) (I) One or more motor vehicles or bicycles kept and used by any debtor in the aggregate value of three thousand dollars ($3,000); or

(II) (A) One or more motor vehicles kept and used by any elderly or disabled debtor, or by any debtor with an elderly or disabled spouse or dependent, in the aggregate value of six thousand dollars ($6,000).

(B) For the purposes of this subparagraph (II): "Disabled person" means any person who has a physical or mental impairment which is disabling and which, because of other factors such as age, training, experience, and social setting, substantially precludes the person having such impairment from engaging in a useful occupation as a homemaker or as a wage earner in any employment which exists in the community for which he has competence; and "elderly person" means any person who is sixty-five years of age or older.

(k) The library of any debtor who is a professional person, including a minister or priest of any faith, kept and used by the debtor in carrying on his or her profession, in the value of three thousand dollars ($3,000); except that exemptions with respect to any of the property described in this paragraph (k) may not also be claimed under paragraph (i) of this subsection (1);

(l) (I) (A) The cash surrender value of policies or certificates of life insurance to the extent of fifty thousand dollars ($50,000) for writs of attachment or writs of execution issued against the insured; except that there is no exemption for increases in cash value from moneys contributed to a policy or certificate of life insurance during the forty-eight months prior to the issuance of such writ of attachment or writ of execution; and

(B) The proceeds of policies or certificates of life insurance paid upon the death of the insured to a designated beneficiary, without limitation as to amount, for writs of attachment or writs of execution issued against the insured.

(II) The provisions of this paragraph (l) shall not be interpreted to provide an exemption for attachment or execution of the proceeds of any policy or certificate of life insurance to pay the debts of a beneficiary of such policy or certificate.

(III) The provisions of this paragraph (l) shall not provide an exemption for attachment or execution of the proceeds of any policy or certificate of life insurance if the beneficiary of such policy or certificate is the estate of the insured.

(m) The proceeds of any claim for loss, destruction, or damage and the avails of any fire or casualty insurance payable because of loss, destruction, or damage to any property which would have been exempt under this article to the extent of the exemptions incident to such property;

(n) The proceeds of any claim for damages for personal injuries suffered by any debtor except for obligations incurred for treatment of any kind for such injuries or collection of such damages;

(o) The full amount of any federal or state earned income tax credit refund;

(p) Professionally prescribed health aids for the debtor or a dependent of the debtor;

(q) The debtor's right to receive, or property that is traceable to, an award under a crime victim's reparation law;

(r) For purposes of garnishment proceedings pursuant to the provisions of article 54.5 of this title, any amount held by a third party as a security deposit, as defined in section 38-12-102 (2), C.R.S., or any amount held by a third party as a utility deposit to secure payment for utility goods or services used or consumed by the debtor or his dependents;

(s) Property, including funds, held in or payable from any pension or retirement plan or deferred compensation plan, including those in which the debtor has received benefits or payments, has the present right to receive benefits or payments, or has the right to receive benefits or payments in the future and including pensions or plans which qualify under the federal "Employee Retirement Income Security Act of 1974" as an employee pension benefit plan, as defined in 29 U.S.C. sec. 1002, any individual retirement account, as defined in 26 U.S.C. sec. 408, any Roth individual retirement account, as defined in 26 U.S.C. sec. 408A, and any plan, as defined in 26 U.S.C. sec. 401, and as these plans may be amended from time to time;

(t) All property which is subject to a judgment against a debtor for failure to pay state income tax to a state for periods when such individual was not a resident of such state on benefits received from a pension or other retirement plan;

(u) Any child support obligation or child support payment required by a support order if the requirements of section 13-54-102.5 are met.

(2) Notwithstanding the provisions of paragraph (h) of subsection (1) of this section and section 13-54-104, military pensions shall be subject to court-ordered support of children or spouse.

(3) Notwithstanding the provisions of paragraph (s) of subsection (1) of this section, any pension or retirement benefit or payment shall be subject to attachment or levy in satisfaction of a judgment taken for arrearages for child support or for child support debt, subject to the limitations contained in section 13-54-104.

(4) Notwithstanding anything to the contrary in this section, all property of a person who has committed a felonious killing, as defined in section 15-11-803 (1) (b), C.R.S., and as determined in the manner described in section 15-11-803 (7), C.R.S., shall be subject to attachment or levy in satisfaction of a judgment awarded pursuant to section 13-21-201 or section 13-21-202 for such felonious killing.

History
Source: L. 59: p. 530, § 2. CRS 53: § 77-13-2. C.R.S. 1963: § 77-2-2. L. 73: pp. 236, 915, 916, §§ 15, 1, 3. L. 75: (1)(o)(II) amended, p. 1466, § 6, effective July 18. L. 77: (1)(h) amended and (1.1) added, p. 811, § 1, effective July 1. L. 81: Entire section R&RE, p. 893, § 2, effective July 1. L. 84: (1)(r) added, p. 475, § 2, effective January 1, 1985. L. 85: (1)(j) amended, p. 580, § 1, effective April 30. L. 91: (1)(s) and (3) added, p. 383, §§ 1, 2, effective May 1. L. 92: (1)(t) added, p. 2241, § 1, effective June 6. L. 94: (1)(u) added, p. 1210, § 1, effective May 22. L. 95: (1)(l) amended, p. 723, § 1, effective July 1. L. 96: (4) added, p. 50, § 2, effective July 1. L. 2000: (1)(a), (1)(b), (1)(c), (1)(e), (1)(f), (1)(g), (1)(i), (1)(j)(I), (1)(j)(II)(A), (1)(k), and (1)(o) amended, p. 715, § 2, effective May 23. L. 2002: (1)(h.5) added, p. 587, § 11, effective May 24; (1)(s) amended, p. 487, § 1, effective May 24; (1)(g) amended, p. 1862, § 1, effective July 1; (1)(l)(I)(A) amended, p. 641, § 1, effective August 7.

Annotations
Cross references: For specific exemptions, compare the following: Cemetery company property, see § 7-47-106; workers' compensation benefits, see § 8-42-124; employment security benefits, see § 8-80-103; delinquent insurance company assets, see § 10-3-556; group life insurance proceeds, see § 10-7-205; fraternal benefit society insurance benefits, see § 10-14-403; constitutional state officers' fees or salaries, see § 13-61-101; family allowance from estate, see § 15-11-403; child support payments, see § 22-64-120; public assistance payments, see § 26-2-131; homestead exemptions, see part 2 of article 41 of title 38.

38-41-201. Homestead exemption.
Statute text
Every homestead in the state of Colorado occupied as a home by the owner thereof or his or her family shall be exempt from execution and attachment arising from any debt, contract, or civil obligation not exceeding in value the sum of forty-five thousand dollars ($45,000) in actual cash value in excess of any liens or encumbrances on the homesteaded property in existence at the time of any levy of execution thereon.

And my favorite annotation to this section:

The policy of the state is to preserve the home to the family, even at the sacrifice of just demands, for the reason that the preservation of the home is deemed of paramount importance. (1887 & 1992)

That is to preserve homes and farms, that is how it should be. If fraud is committed I am sure that there is a way to handle that criminally or through civil litigation. debts do happen in business and agriculture. Those are fair exemptions.

First thanks to all for answering my ?'s so far. I have 2 questions... I'm still 6 mos or so from filing. I'm doing ok now but looking at my cash flow I know I can't hold out much longer than 8-9 months absolute max. I relocated to Colorado in 2005. My wife and 4 kids moved out in February, I got the old house in Indiana sold (short sale...Yikes!!!) and moved out in May. For Bk purposes, what constitutes "residing" in a state? When my wife got a phone and utils in Feb, or when I started paying Colorado income taxes in May?? Colorado and Indiana have very different exemption schedules, so like all bk stuff timing will be important.

Also, I have a bike thats worth about $1000, reading the Colorado exemption statutes I'm guessing I can exempt it, but has anyone out there tried this. Do I have to be using the bike for commuting or???? Is it a car OR bike exemption?

Thanks.

Is the vehicle exemption $3k total or per vehicle?

$3K Total

Hi,
My understanding of Colorado exemptions is that with the exception of the home equity, the exemption limits are for each filer....so that if a married couple is filing chapter 7, the household good exemption is 6,000 not 3000. And I think this means that we could have 2 cars as long as we didn't have 3000 equity in either, rather than 3,000 total equity in automobiles.

Does anyone know if my understanding is correct? I'm getting ready to prepare questions for a meeting with a 2nd bk lawyer, and I want to be as precise as possible. My first meeting with a lawyer I didn't know enough to ask pointed questions.

Thanks.

Hi,
My understanding of Colorado exemptions is that with the exception of the home equity, the exemption limits are for each filer....so that if a married couple is filing chapter 7, the household good exemption is 6,000 not 3000. And I think this means that we could have 2 cars as long as we didn't have 3000 equity in either, rather than 3,000 total equity in automobiles.

Does anyone know if my understanding is correct? I'm getting ready to prepare questions for a meeting with a 2nd bk lawyer, and I want to be as precise as possible. My first meeting with a lawyer I didn't know enough to ask pointed questions.

Thanks.

Here's a link to the bankruptcy exemptions in Colorado - http://www.bankruptcyinformation.com/CO_exemp.htm

I don't see anything here that indicates these exemptions are tied to each individual filing (except for burial plots which are limited to one per person). This is a good question to clarify during your next bk lawyer consultation interview. Good luck - hope the interview goes well.

There are new Colorado rules effective Oct 15. The court has not summarized it on their website, but linked to this temporarily to show the differences (with omitted sections with strikethrough and new additions in ALL CAPS).

http://www.state.co.us/gov_dir/leg_dir/olls/sl2007a/sl_226.htm

The big changes I see (but look at it youself for all details):

Jewelry went from $1,000 to $2,000
Agricultural occupation equipment $25,000 => $50,000
Trade, business materials $10,000 => $20,000
Motor vehicle $3,000 => $5,000 (or $10,000 for elderly/disabled)
Homestead exemption $45,000 => $60,000 (or $90,000 for elderly/disabled)

There are just the heavy hitters. Some involve changes with child support, etc., so investigate the others for yourself.

Is a lump sum severance payment exempted the same as wages (75%)? It was received approx. 8 months before filing (so is out of the picture for the means test), however some of the money is still in the bank. Trying to figure out how much of it I stand to lose if I file chapter 7.