Colorado Bankruptcy Guide

Complete guide to filing bankruptcy in Colorado, including current median income requirements, Colorado's generous homestead exemption up to $250,000, bankruptcy court information, and how to find qualified bankruptcy attorneys throughout Colorado.

Colorado Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Colorado, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$71,520	$5,960
2 people	$91,621	$7,635
3 people	$103,038	$8,587
4 people	$119,784	$9,982
5 people	$128,784	$10,732
6 people	$137,784	$11,482

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Colorado Eligibility

Colorado Bankruptcy Exemptions

Colorado does not allow bankruptcy filers to choose federal exemptions. All Colorado bankruptcy filers must use Colorado state exemptions. However, Colorado has some of the most generous exemptions in the nation, particularly its $250,000 homestead exemption.

Colorado Homestead Exemption

Up to $250,000 ($350,000 if elderly or disabled).

Colorado's homestead exemption protects up to $250,000 of equity in your primary residence. This is one of the highest specific homestead exemptions in the country and was substantially increased in recent years to provide better protection for Colorado homeowners facing rising property values.

If you are age 60 or older, or if you are disabled, the homestead exemption increases to $350,000. This provides exceptional protection for elderly and disabled Colorado homeowners.

The exemption applies to real property including houses, mobile homes, condominiums, townhomes, and co-ops that serve as your principal residence. The property must be your principal residence at the time of filing bankruptcy.

With Colorado's rapidly appreciating real estate markets in Denver, Boulder, Colorado Springs, and mountain communities, this generous homestead exemption allows most Colorado homeowners to protect their homes entirely in Chapter 7 bankruptcy.

Colorado Vehicle Exemption

Up to $15,000 per vehicle (two vehicles if disabled, elderly, or dependent care).

Colorado allows you to protect up to $15,000 of equity in one motor vehicle. This is one of the most generous vehicle exemptions in the country.

If you are elderly (age 60+), disabled, or if you use the vehicle to transport a dependent who is elderly or disabled, you can exempt up to two vehicles with a combined value of $30,000.

Colorado's high vehicle exemption reflects the state's high cost of living and the necessity of reliable transportation in a geographically large state.

Colorado State Exemptions

Colorado bankruptcy exemptions include:

• Homestead: $250,000 ($350,000 if age 60+ or disabled)
• Vehicle: $15,000 per vehicle (two vehicles up to $30,000 combined if elderly, disabled, or dependent care)
• Household Goods: $3,000
• Jewelry and Articles of Adornment: $2,500
• Clothing: $2,000
• Food and Fuel: $1,000
• Books and Pictures: $2,000
• Burial Site: Unlimited
• Tools of Trade: $100,000
• Livestock or Poultry: $3,000
• Wildcard: None (no general wildcard exemption in Colorado)
• Wages: 75% of earned but unpaid weekly disposable earnings, or 30 times the federal minimum wage, whichever is greater

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance, child support
• Life Insurance: Life insurance proceeds if beneficiary is a dependent; cash surrender value up to $100,000
• Health Aids: All health aids
• Education Savings: Colorado 529 education savings plan (CollegeInvest)
• Personal Injury Awards: Personal injury awards (except for pain and suffering)
• Wrongful Death Awards: Wrongful death awards
• Security Deposits: Landlord security deposits

Filing Bankruptcy in Colorado

Chapter 7 Bankruptcy in Colorado

Chapter 7 bankruptcy is very commonly filed throughout Colorado. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Colorado, you must pass the means test by having income below the Colorado median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Colorado's exceptionally generous exemptions—$250,000 homestead ($350,000 for elderly/disabled), $15,000 vehicle exemption, and $100,000 tools of trade—mean that most Colorado residents can keep all their assets while obtaining a complete discharge of unsecured debts through Chapter 7.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Colorado

Chapter 13 bankruptcy allows Colorado residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Colorado if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (rare with Colorado's generous exemptions, but possible if you have more than $250,000 in home equity), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Court in Colorado

Colorado has one federal bankruptcy court district:

District of Colorado

Main Courthouses: Denver, Colorado Springs, Grand Junction, Pueblo

The U.S. Bankruptcy Court for the District of Colorado covers the entire state. The court has multiple locations to serve Colorado's geographically diverse population:

Denver Division: Serves the Denver metropolitan area including Denver, Aurora, Lakewood, Arvada, Westminster, Thornton, Boulder, Fort Collins, Greeley, and the Front Range urban corridor. This is by far the busiest division, handling the majority of Colorado bankruptcy cases due to the Denver metro area's population concentration.

Colorado Springs Division: Serves the Pikes Peak region including Colorado Springs, Pueblo, and south-central Colorado.

Grand Junction Division: Serves western Colorado including Grand Junction and the Western Slope.

You must file in the district where you have lived for the greater part of the 180 days before filing. Since Colorado has only one district, all Colorado residents file in the District of Colorado, but your case will be assigned to the appropriate division based on your location.

Colorado Residency Requirements

To use Colorado bankruptcy exemptions, you must have been domiciled (legally residing) in Colorado for at least 730 days (2 years) before filing. If you've lived in Colorado for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Colorado does not allow the choice of federal exemptions, so once you meet the residency requirement, you must use Colorado state exemptions (which are very generous).

Find a Colorado Bankruptcy Attorney

Most Colorado bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and the benefits of Colorado's generous exemptions, consulting with an experienced Colorado bankruptcy attorney is highly recommended.

What a Colorado Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize Colorado exemptions to protect your assets
• Evaluate whether your home equity is protected under Colorado's $250,000 or $350,000 homestead
• Help you qualify for enhanced exemptions if you're elderly or disabled
• Calculate whether you qualify for Chapter 7 using the Colorado means test
• Navigate Colorado-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Colorado

Chapter 7 bankruptcy attorney fees in Colorado vary by location:

• Denver metro area (Boulder, Aurora, Lakewood): $1,400 to $2,000 plus $338 filing fee
• Colorado Springs, Fort Collins: $1,200 to $1,700 plus $338 filing fee
• Pueblo, Grand Junction: $1,000 to $1,500 plus $338 filing fee
• Mountain communities and rural areas: $1,100 to $1,600 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,000 to $4,500 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Denver-area attorney fees tend to be higher due to the region's cost of living. Many Colorado attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Colorado-Specific Bankruptcy FAQs

Can I keep my house in Colorado bankruptcy?

Almost certainly yes. Colorado's $250,000 homestead exemption (or $350,000 if age 60+ or disabled) is one of the most generous in the nation. If you have equity within these limits, your home is fully protected in Chapter 7 bankruptcy. Even in expensive markets like Denver, Boulder, Aspen, or Vail, many homeowners fall within these limits due to mortgages. Colorado's generous exemption protects most homes.

Can I keep my car in Colorado bankruptcy?

Yes, almost always. Colorado allows you to exempt up to $15,000 of equity in one motor vehicle, which is one of the highest vehicle exemptions in the country. If you're elderly (60+), disabled, or use a vehicle to transport an elderly or disabled dependent, you can protect two vehicles with up to $30,000 combined equity. Most Colorado residents easily fall within these limits.

Does Colorado allow federal bankruptcy exemptions?

No, Colorado is one of the states that opted out of the federal exemption system. All Colorado filers must use Colorado state exemptions. However, this is rarely a disadvantage because Colorado's state exemptions are far more generous than federal exemptions, especially the $250,000 homestead compared to the federal $27,900 homestead, and the $15,000 vehicle exemption compared to the federal $4,450.

What if I recently moved to Colorado from another state?

If you've lived in Colorado for less than 730 days (2 years), you must use the exemptions from your previous state of residence. This could significantly impact your case, especially if you moved from a state with lower exemptions. For example, if you moved from a state with a $25,000 homestead exemption, you'd have to use that instead of Colorado's $250,000 until you've been in Colorado for 2 years. Plan your bankruptcy timing carefully with an attorney.

How does Colorado's marijuana industry affect bankruptcy?

Despite Colorado's legalization of recreational marijuana, bankruptcy is federal law and marijuana remains illegal under federal law. Bankruptcy trustees may refuse to administer assets from marijuana-related businesses, and marijuana business owners face unique challenges in bankruptcy. Income from marijuana businesses may still be counted for means test purposes, but assets may not receive full protection. Consult a Colorado bankruptcy attorney experienced with marijuana industry issues.

Can I protect my business tools in Colorado bankruptcy?

Yes, Colorado has an exceptionally generous $100,000 tools of trade exemption. This protects equipment, tools, inventory, and other assets used in your trade, business, or profession up to $100,000 in value. This is one of the highest tools of trade exemptions in the country and provides excellent protection for self-employed individuals, contractors, and small business owners throughout Colorado.

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