New Colorado Homestead Exemption Laws

All debtors filing Chapter 7 bankruptcy may claim the Colorado homestead exemption law for a primary residence, including improvements attached to land. The value allowance, as provided by the Colorado Homestead Exemption Act, is $45,000 in total equity. The state legislature assesses the amount of the exemption from time to time, and is subject to amendment.

Most often, changes in the exemption amount are tied to fluctuations in the consumer price index. In Chapter 7 cases, the Colorado homestead exemption form is not effective against Chapter 7 creditors, but must also include a supplemental declaration in exemption claim form H, filed for record with the clerk of the bankruptcy court. Taxes owed to the IRS will still attach, subject to new changes in the federal Code relating to homestead value.