Colorado

[laz]

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.

[Lostmyjob]

Does the new law change any of this?

[anonymuse]

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

[anonymuse]

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)

[robivi3]

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.

[AreSoonParted]

Colorado Exemptions - Residence and bike

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.

[Sammy]

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

[anonymuse]

$3K Total

[AreSoonParted]

Exemptions for married couple filing bk

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.

[lrprn]

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.

[anonymuse]

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.

[BearChaser303]

Severance Payment

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.