Denver, Colorado, Bankruptcy Exemption Lawyers
SHARON W. GROSSENBACH, Attorneys at Law

One fear people have about filing bankruptcy, specifically under Chapter 7, is that they will lose their property and assets to creditors; however, state and federal bankruptcy exemptions allow debtors to keep most if not all of their property so long as the value does not exceed the exemption, and they are current on payments (if applicable). Many assets, such as retirement accounts and pensions, are also exempt and are not at risk under bankruptcy.

What does this mean? When an item is classified as exempt, it means that it cannot be taken or liquidated by the bankruptcy trustee for the benefit of the unsecured creditors. It is the bankruptcy trustee's job to determine if there are any non-exempt assets which could be collected and/or liquidated to pay a portion of the unsecured debt. If an item is specified as exempt, or the value is within the allowed exemption, under Colorado law, then the creditor or bankruptcy trustee cannot take or sell it. 

For a complete list of state exemptions, please see our Colorado bankruptcy exemption table. There are dollar values for many exemptions. When determining the value of specific items, liquidation (garage sale/ auction) value is appropriate (normally 5-10% of purchase price). It is extremely rare for anyone to lose personal property in bankruptcy. If you are over the allowed exempt value for a particular item, then you can still keep it by agreeing to pay the trustee the difference (amount in value over the allowed exemption). If you have substantial non-exempt equity in something you wish to keep, then a Chapter 13 may allow you to do so. In a Chapter 13, you can keep the non-exempt value of items, provided you pay your unsecured creditors an amount equal to the non-exempt equity through the plan over three to five years.

An Experienced Denver Bankruptcy Law Firm

There are several special rules surrounding bankruptcy exemptions law. It is important you talk to an experienced law firm about your financial situation.

The law office of Sharon W. Grossenbach, Attorneys at Law, devotes it's practice exclusively to consumer bankruptcy, and is one of the most successful firms in the state of Colorado. Principal attorney Sharon W. Grossenbach has been representing clients through the bankruptcy process since 1977. When you come to us for bankruptcy advice, we will take time to explain all aspects of the process, including the applicable exemptions.

Contact Us

For more information about federal and state bankruptcy exemptions, and the general procedure of bankruptcy itself, contact the Denver bankruptcy lawyers of Sharon W. Grossenbach, Attorneys at Law, for a free initial consultation.