Debtors are entitled to claim certain types of property as exempt from the bankruptcy estate. The trustee in a chapter 7 bankruptcy will collect and liquidate non-exempt property. In a chapter 13 bankruptcy, the debtor must pay a minimum of the value of non-exempt property to the trustee, who will pass that along to unsecured creditors (e.g. credit card creditors).
The laws of the State of Colorado determine what types of property are exempt and how much of the equity in the property is exempt. Equity is the value of the property, less any amounts owed to a secured creditor.
The following are a few of Colorado’s exemptions:
Homestead $60,000.00 for equity in home
Homestead for elderly or disabled $90,000.00 for equity
Automobiles $5,000.00 per debtor for equity
Automobiles for elderly or disabled $10,000.00 per debtor for equity
Household goods $3,000.00 per debtor
Clothing $1,500.00 per debtor and dependent
Jewelry/furs $2,000.00 per debtor
Wages owed on date of filing 75% of net wages
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What if I live in my RV? It's free and clear (no loans), and it's worth about $30,000. Without it I have no place to live. Can I get the homestead exemption?
ReplyDeleteThat's a good question. There is an exemption that protects a mobile home. We recommend that you make an appointment for a free initial consultation with one of our attorneys.
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