Filing Chapter 7 Bankruptcy in Colorado (2026)
Reviewed by DocDraft Legal Team · Colorado · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Colorado. Colorado is an opt-out state: under C.R.S. 13-54-107 you must use Colorado's exemptions and cannot choose the federal 522(d) list. Colorado raised its protections in recent years, and the homestead exemption now shields up to $250,000 of home equity, or $350,000 if the owner or a family member is elderly or disabled, under C.R.S. 38-41-201. This page explains that homestead, the vehicle and personal-property figures, the means-test median income, and the single U.S. Bankruptcy Court for the District of Colorado where Coloradans file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Colorado use state or federal bankruptcy exemptions?
Colorado is an opt-out state. Under C.R.S. 13-54-107, the federal 11 U.S.C. 522(d) exemptions are denied to Colorado residents, so you must use Colorado's own exemption list and cannot elect the federal set. Colorado offers a single state exemption scheme rather than a choice between two systems.
Can I keep my house if I file Chapter 7 in Colorado?
Often yes. Under C.R.S. 38-41-201, Colorado's homestead exemption protects up to $250,000 of equity in your home, rising to $350,000 if the owner, spouse, or a dependent is elderly or disabled. If your home equity fits within that figure, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Colorado?
Usually yes if your equity is modest. Under C.R.S. 13-54-102(1)(j), Colorado exempts up to $15,500 of equity in one or more motor vehicles, rising to $25,500 for an elderly or disabled debtor or one with an elderly or disabled spouse or dependent. Equity above that may be reachable by the trustee.
What is the income limit to file Chapter 7 in Colorado?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Colorado are $87,940 for one earner, $109,497 for two, $130,850 for three, and $153,501 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Colorado's Opt-Out Rule, the $250,000 Homestead, and the District of Colorado Court
Colorado is a bankruptcy opt-out state. Under C.R.S. 13-54-107, the federal 11 U.S.C. 522(d) exemptions are expressly denied to Colorado residents, so a debtor filing here must use Colorado's own exemptions and cannot choose the federal list. Colorado's protections are relatively generous after recent increases. The headline homestead exemption under C.R.S. 38-41-201 shields up to $250,000 of home equity, and up to $350,000 when the owner, the owner's spouse, or a dependent is elderly or disabled. The motor-vehicle exemption under C.R.S. 13-54-102(1)(j) protects up to $15,500 of vehicle equity, or $25,500 for an elderly or disabled debtor or one supporting an elderly or disabled spouse or dependent. Colorado does not have a broad cash wildcard like some states; instead it protects specific categories such as household goods, clothing, tools of the trade, and health aids under C.R.S. 13-54-102, plus wages under C.R.S. 13-54-104 and retirement accounts under C.R.S. 13-54-102(1)(s). All Colorado filers use one court: the U.S. Bankruptcy Court for the District of Colorado, a single statewide district seated in Denver.
Relevant Laws
Colorado Homestead Exemption (C.R.S. 38-41-201)
Sets Colorado's homestead exemption at up to $250,000 of home equity, or $350,000 where the owner, spouse, or a dependent is elderly or disabled. This is the exemption that lets many Colorado homeowners keep their house in Chapter 7.
Colorado Opt-Out from Federal Exemptions (C.R.S. 13-54-107)
Colorado's opt-out statute. It denies residents the federal 11 U.S.C. 522(d) exemptions and limits them to the exemptions expressly provided by Colorado statute, so bankruptcy filers must use the state list.
Colorado Motor Vehicle and Personal Property Exemptions (C.R.S. 13-54-102)
Exempts up to $15,500 of motor vehicle equity, or $25,500 for an elderly or disabled debtor, and protects household goods, tools of the trade, health aids, and tax-exempt retirement accounts under subsection (1)(s).
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Colorado has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Colorado Chapter 7 Exemption Table
Homestead
C.R.S. 38-41-201: up to $250,000 of equity in a home occupied by the owner or the owner's family, rising to $350,000 when the owner, spouse, or a dependent is elderly or disabled. Equity above the applicable figure may be reachable by the trustee.
Motor vehicle
C.R.S. 13-54-102(1)(j): up to $15,500 of equity in one or more motor vehicles, rising to $25,500 for an elderly or disabled debtor or a debtor with an elderly or disabled spouse or dependent.
Wildcard
Colorado has no broad cash wildcard exemption. Instead it protects specific categories of property by statute, so filers rely on the homestead, vehicle, household-goods, and tools-of-the-trade exemptions rather than a general dollar amount applied to any asset.
Personal property
C.R.S. 13-54-102 exempts household goods up to a statutory cap, wearing apparel, one or more items of jewelry, professional tools of the trade, health aids, and food and fuel for the household, each subject to its own dollar limit under the statute.
Wages
C.R.S. 13-54-104: earnings are exempt to the extent of the greater of 75 percent of weekly net earnings or 30 times the state or federal minimum wage, mirroring the federal garnishment cap. Pension and insurance payments are treated as earnings under the statute.
Retirement and tools
C.R.S. 13-54-102(1)(s): tax-exempt retirement accounts such as IRAs and 401(k) plans are exempt. Professional tools, equipment, and materials of the trade are exempt up to a statutory cap under C.R.S. 13-54-102, and ERISA-qualified plans are separately excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current Colorado means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Colorado median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $87,940 for one, $109,497 for two, $130,850 for three, and $153,501 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Colorado and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Value your assets and apply the Colorado exemptions
Before preparing your schedules days after startingValue your home, vehicle, household goods, and retirement accounts, then match them to Colorado's exemptions: the C.R.S. 38-41-201 homestead, the C.R.S. 13-54-102(1)(j) vehicle exemption, and the wage and retirement provisions. Colorado is opt-out, so you cannot use the federal 522(d) list.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Colorado, the single statewide court seated in Denver. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Colorado means-test median income | Check your household size against the U.S. Trustee Colorado median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $87,940 for one, $109,497 for two, $130,850 for three, and $153,501 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Colorado and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Value your assets and apply the Colorado exemptions | Value your home, vehicle, household goods, and retirement accounts, then match them to Colorado's exemptions: the C.R.S. 38-41-201 homestead, the C.R.S. 13-54-102(1)(j) vehicle exemption, and the wage and retirement provisions. Colorado is opt-out, so you cannot use the federal 522(d) list. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Colorado, the single statewide court seated in Denver. Filing triggers the automatic stay that pauses collection and garnishment while your case proceeds. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under C.R.S. 38-41-201, Colorado's homestead exemption protects up to $250,000 of equity in a home occupied by the owner or the owner's family. The amount rises to $350,000 when the owner, the owner's spouse, or a dependent is elderly or disabled. Equity above the applicable figure may be reachable by the bankruptcy trustee.
Under C.R.S. 13-54-102(1)(j), Colorado exempts up to $15,500 of equity in one or more motor vehicles used by the debtor. That rises to $25,500 for an elderly or disabled debtor, or a debtor with an elderly or disabled spouse or dependent. If your equity fits within the figure, the vehicle is protected in Chapter 7.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Colorado is a single federal judicial district, so all filers use the U.S. Bankruptcy Court for the District of Colorado, seated in Denver. You file there when you have lived in Colorado for most of the prior 180 days. The court handles your petition, the 341 meeting of creditors, and your discharge.
Largely yes. Under C.R.S. 13-54-104, at least 75 percent of your weekly net earnings, or 30 times the state or federal minimum wage if greater, is exempt from garnishment. Under C.R.S. 13-54-102(1)(s), tax-exempt retirement accounts such as IRAs and 401(k) plans are protected. ERISA-qualified plans are also excluded from the estate under federal law.
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