{"id":286839,"date":"2021-04-21T16:06:20","date_gmt":"2021-04-21T21:06:20","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/colorado-bankruptcy-exemptions-and-law.html"},"modified":"2026-07-13T12:00:19","modified_gmt":"2026-07-13T17:00:19","slug":"colorado-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/colorado-bankruptcy-exemptions-and-law.html","title":{"rendered":"Colorado Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Colorado Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Colorado bankruptcy is a legal process governed by federal law and state-specific exemptions that allows individuals to eliminate or restructure overwhelming debt. Under the U.S. Bankruptcy Code<\/span>, residents can file for liquidation<\/span> under Chapter 7 if they pass a mandatory income means test<\/span>, or choose debt reorganization under Chapter 13. While the court issues an automatic stay to halt creditor harassment and\u00a0foreclosures<\/span>,\u00a0Colorado law<\/span>\u00a0requires\u00a0filers<\/span>\u00a0to use state exemptions to protect assets such as home equity and vehicles.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

If you live in Colorado and are having trouble paying down your debt, bankruptcy could shield you from bill collectors while you try to catch up financially. Bankruptcy offers individuals and couples who are deeply in debt and do not see a way to pay it off in the future a way forward. It can force your creditors to accept payment plans and reduced payments to give you a fresh start<\/span>, free from most debt.<\/p>\n

While bankruptcy courts<\/span>\u00a0are governed by federal law, the\u00a0U.S.\u00a0Bankruptcy Code<\/span><\/a>\u00a0allows states to create their own rules governing property that can be protected from creditors<\/a>. This is usually referred to as \u201cexempt property<\/span>” and lets you shelter some assets to help you start over after bankruptcy.<\/p>\n

Some states let you choose between state and federal exemption rules<\/a>, depending on which one benefits you the most. Colorado requires you to use the state exemptions<\/a>, which protect your property from liquidation<\/span> or foreclosure<\/span> in bankruptcy.

Most personal bankruptcies are one of the following types:<\/p>\n