The Colorado Homestead Exemption

Learn about the Colorado homestead exemption and how it can protect your home equity in bankruptcy.

Updated by , Attorney
Get debt relief now. We've helped 205 clients find attorneys today.

There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

In bankruptcy, a homestead exemption protects equity in your home. Here you'll find specific information about the homestead exemption in Colorado.

For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. You'll find detailed information about Colorado bankruptcies in Filing for Bankruptcy in Colorado.



The Colorado Homestead Exemption Amount

Under the Colorado exemption system, homeowners can exempt up to $75,000 of their home or other property covered by the homestead exemption. The homestead exemption is $105,000 if the homeowner, his or her spouse, or dependent is disabled or 60 years of age or older.

Example 1. If you own a house worth $120,000 and you have a mortgage balance of $80,000, you have $40,000 of equity in the property. If you file a Chapter 7 bankruptcy, you can use the Colorado homestead exemption to protect your entire equity.

Example 2. If your mortgage was only $20,000, then you could only exempt $75,000 of your $100,000 of equity. In that case, the bankruptcy trustee would likely sell your house, give you $75,000 from the proceeds for your exemption and use the rest of the proceeds to pay his or her fees and your creditors.

Doubling for Married Couples

Some states allow married couples to double the amount of their homestead exemption if they are filing a joint bankruptcy. However, in Colorado, you cannot double the homestead exemption even though you can double your other exemptions.

The Scope of the Colorado Homestead Exemption

In Colorado, the homestead exemption applies to real property, such as your home or condominium. It will also protect a mobile home, manufactured home, or house trailer. You must occupy the property in order to take advantage of the homestead exemption.

The homestead exemption also applies to sale proceeds of the property. The sale proceeds are exempt for two years after they are received. Also, a deceased owner's spouse or children can claim the homestead exemption.

Can You Use the Federal Bankruptcy Exemptions in Colorado?

Some states allow bankruptcy filers to use the federal bankruptcy exemptions instead of the state exemptions. Colorado is not one of those states. If you reside in Colorado you must use the state exemptions.

(To learn more about which state exemptions apply to you, see Which Exemptions Can You Use in Bankruptcy?)

Homestead Declarations

In Colorado the homestead exemption is usually automatic – you don't have to file a homestead declaration in order to claim the homestead exemption in bankruptcy. 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.

Finding the Colorado Homestead Exemption Statute

Colorado's homestead exemption is found in the Colorado state statutes at Colorado Revised Statutes § 38-41-201 through § 38-41-209. To learn how to find state statutes, check Laws and Legal Research.

Periodic Adjustments of Colorado Exemption Amounts

Colorado's exemption amounts, including the homestead exemption, are adjusted periodically to account for inflation. You can find Colorado's statutes here.

Need More Bankruptcy Help?

Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!


Our Editor's Picks for You

More Like This

Filing for Bankruptcy in Colorado

Which Bankruptcy Chapter Should I File to Keep My House?

Can I Keep My Car in Chapter 7 Bankruptcy?

What to Consider Before Filing Bankruptcy

What Not to Do Before Bankruptcy

Chapter 7 Bankruptcy—Who Can't File?

Options If You Can't Afford a Bankruptcy Lawyer

Helpful Bankruptcy Sites

Department of Justice U.S. Trustee Program

United States Courts Bankruptcy Forms


We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated April 1, 2022

Get Professional Help
Get debt relief now.
We've helped 205 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you