Colorado Increases Bankruptcy Exemptions | The State of Colorado significantly raised the amount of home equity and personal property that Coloradans can exempt, protect, and keep during the bankruptcy process on April 7, 2022, when Governor Polis signed SB22-086 into law.
Colorado Homestead Exemptions
These amendments to the current Colorado Bankruptcy Exemption laws are sure to be good news for debtors. The bill raised Colorado’s homestead exemption from what was $75,000 to what is now $250,000. This increase is even higher for those that are elderly or disabled.
Homestead Definition Expanded
In addition, these new changes expand the definition of “dwelling” to include personal property that is actually used as a residence beyond manufactured homes, and mobile homes. Now under this newly signed law, certain vehicles including any trailer, vessel, or camper trailer may qualify as a homestead exemption as well.
Personal Property Exemptions
In addition to the new homestead exemptions, this new law has also doubled the exemption limits for personal property as well. For example, the exemptions for tools and equipment used in the debtor’s primary gainful occupation went from $30,000 to $60,000. The exemption for up to two motor vehicles or bicycles kept and used by any debtor was increased to an aggregate value of $15,000.
These examples of increased exemptions are by no means exhaustive. There are many more increased exemptions that will benefit debtors living in the State of Colorado.
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