On March 7, 2022 a new Colorado law expanded the definition of dwelling to include tiny homes, railway cars, shipping or cargo containers or sheds and even yurts. Dwellings qualify for the Colorado Homestead Exemption. The amount of the Homestead Exemption was also increased in the same legislation.
The Homestead Exemption has been increased to protect $250,000 in equity for a person under 60 years of age.
If you are 60 years of age or older, the Homestead Exemption now protects up to $350,000 in home equity.
For a disabled person or a person that has a disabled spouse or disabled dependent living in the dwelling, the Homestead Exemption now protects up to $350,000 in equity.
You only receive one Homestead Exemption for your dwelling even if you are filing bankruptcy with your spouse.
In most circumstances, you must be living in the dwelling to claim the Homestead Exemption.
You must be a resident of Colorado for at least 2 years to use the Colorado Exemptions.
In addition, Federal Law limits the protection to $170,000 if you have not owned your dwelling for 1215 days which is about 41 months.
You should always speak to an attorney regarding your specific situation before you decide to file for bankruptcy.