What Assets Are Exempt?

Asset Protection in Bankruptcy

Maximizing Your Exemptions Under Colorado Law

Many people fear that they will "lose everything" by filing for bankruptcy. With planning, you may not lose any assets in a Chapter 7 personal bankruptcy. At John Turner, Attorney at Law, your case is thoroughly reviewed prior to filing to enable you to protect as much as possible.

I have focused my law practice only on bankruptcy law since 1999. My job as your bankruptcy lawyer is to apply legal strategies for maximum asset protection, and advise you about "do's and don'ts" prior to submitting your petition. Based in Colorado Springs, I represent clients throughout El Paso County and neighboring counties, including military personnel from Fort Carson and Peterson AFB. Call 719-632-2022 to schedule a free consultation.

Exempt Assets in Your Colorado Bankruptcy

Colorado's list of allowable bankruptcy exemptions is more generous that the federal list, even more so since the Colorado legislature recently increased the exemptions. I am up to speed on these favorable changes, as well as relevant judicial rulings regarding asset protection in bankruptcy. Coloradans who meet residency requirements can now retain the following assets when discharging debts through Chapter 7:

• Home equity: $60,000 homestead exemption ($90,000 for over 60 or disabled)
• Retirement assets (401k, IRA, pension): unlimited
• Vehicles: $5,000 per person ($10,000 if elderly/disabled)
• Tools of the trade (e.g., supplies, machines, tools, electronics, equipment, books, and business materials ): $20,000 value
• Household goods and furnishings: $3,000 per person (This may not sound like much, but that figure is the liquidation value, not the replacement value)

There are many more exemptions, such as clothing, jewelry and watches, family keepsakes, agricultural equipment, personal injury settlements, and public benefits (e.g., unemployment, Social Security). I can explain your bankruptcy asset protection limits for each.

Non-Exempt Assets

Your equity in a second home or other real estate is not exempt. There are limited exemptions for money in savings or checking accounts at filing, and you may have to surrender any tax refund due to you. In addition, an inheritance or property settlement received within 180 days after filing is forfeited to pay creditors.

The Importance of Knowledgeable Legal Counsel

If you have too much home equity, or other assets that exceed the exemptions, I can advise on alternatives or strategies to legally shelter those non-exempt assets before filing. It is extremely important to consult a lawyer before taking such actions on your own — hiding assets, improper transfers, or "gifts" to friends or family can be denied a bankruptcy and even get you into criminal trouble. Also, if you are accused of bankruptcy fraud, I have extensive litigation experience in this area.

Keep your hard-earned assets out of the hands of creditors: Contact my Colorado Springs office today at 719-632-2022 to arrange a free consultation.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.