Colorado Homestead Exemption. The homestead exemption is in the colorado constitution but the law allows lawmakers to suspend it in times of financial crisis which last happened during the great recession a decade ago. The colorado homestead exemption allows homeowners who file bankruptcy to protect 75 000 of equity in their home 105 000 if they are 60 or older.
At that time lawmakers suspended the exemption for three years. The colorado homestead exemption allows one to exempt up to 75 000 of their real property value when filing bankruptcy. If an individual or married couple applies for exemptions on more than one property the exemptions will be denied on every property.
Chapter 7 bankruptcy is typically applied to lower income individuals and involves liquidating your assets to pay off your debt.
However with regard to certain older obligations incurred prior to july 1 1975 the homestead exemption may not be available unless a homestead declaration is recorded. Colorado homestead exemption section 3 5 of article x of the colorado constitution grants a property tax exemption to qualifying senior citizens and disabled veterans commonly referred to as the homestead exemption. There are two main types of bankruptcy for individuals. At that time lawmakers suspended the exemption for three years.
