The Colorado exemptions protecting property increased in April of 2022. One of biggest benefits is $2,500 in protection for the total amount of money in bank accounts. Previously there was no protection for money in bank accounts unless it was social security, disability (with limits) or wages (80% protected). If someone gave you money to help you out and you put it in your bank account it was not protected. There was also an issue of comingling money from different sources and what could and could not be protected. This is a big deal because people no longer need to try to drain their bank accounts before filing which has reduced the stress of filing bankruptcy. You can now keep money in your bank accounts up to $2,500 in total to pay bills after the case is filed. No more worrying about not having money to pay rent or buy food.
For people that own cars or trucks that are below 60 years of age the equity in your vehicle is now protected up to $15,000 which is a huge increase from the prior exemption of $7,500. This is important because used vehicle vales have increase significantly in the past couple of years. Without the change many people vehicles would be over the equity limit. If you are 60 or older or disabled the protection increased to $25,000.
For people that own a home that they live in, the homestead exemption increased from $75,000 to $250,000 if you are less than 60 years of age and it increased from $105,000 to $350,000 if you are 60 or older. This is a huge increase and has meant that many people who could not qualify to file a Chapter 7 Bankruptcy before can now quality and protect their home. This was also needed because of the significant increase in home values on Colorado.
One exemption that was added in April pf 2022 was protection for guns in total up to $1,000 per person filing bankruptcy. Previously there was no exemption for guns. It has made it a lot easier for people that own guns to file knowing that there is now some protection for the guns.
