Colorado protects up to $250,000 in home equity for most filers — $350,000 if you’re 60 or older or disabled — a substantial exemption that covers most homeowners’ equity even in Denver’s expensive housing market. But Colorado has no wildcard exemption at all, which matters more here than in most states given the lack of a federal alternative.
How Chapter 7 Works in Colorado
The process follows federal bankruptcy law: file a petition, a trustee reviews your assets against Colorado’s exemption list, and anything not covered is technically available to pay creditors. Most Colorado Chapter 7 cases are “no-asset” cases — the exemptions cover everything the filer owns, and the case closes with a discharge roughly three to four months after filing.
How Much Home Equity Can You Protect in Colorado?
Colorado’s homestead exemption protects $250,000 in home equity, or $350,000 if you, your spouse, or a dependent is 60 or older or disabled.
Given how much Denver-area home values have risen over the past decade, this exemption level matters — a homeowner with substantial appreciation could easily approach or exceed the standard $250,000 threshold, making the age-60/disability increase to $350,000 a meaningful difference for eligible filers.
Does Colorado Let You Choose Federal Exemptions Instead?
No. Colorado is an opt-out state, so filers must use Colorado's own exemption list rather than the federal exemptions. Colorado also has no wildcard exemption - property has to fit a specific statutory category to be protected. Because Colorado’s own homestead and vehicle exemptions are both reasonably generous, this rarely disadvantages homeowners — but the complete absence of a wildcard is a real gap for renters and filers with property that doesn’t fit a listed category.
What Happens to Your Car in a Colorado Chapter 7?
Colorado exempts $15,000 in equity in one motor vehicle. That’s a genuinely generous figure, meaning most Colorado filers keep their vehicle fully protected regardless of value.
Does Colorado Have a Wildcard Exemption?
None. Colorado does not offer a wildcard exemption - property must fit a specific statutory category (homestead, vehicle, household goods, tools of the trade) to be protected. This matters most for renters or filers without home equity — cash, unusual personal property, or anything that doesn’t fit the homestead, vehicle, or household goods categories isn’t automatically protected the way it would be in a state with a general wildcard.
Do You Qualify for Chapter 7 in Colorado? The Means Test
Colorado’s current median income figures:
- 1 person: $87,940
- 2 people: $109,497
- 3 people: $130,850
- 4 people: $153,501
- Each additional person: add $11,100
Colorado’s median figures run well above the national average, reflecting the state’s relatively high wages, particularly in the Denver metro.
Which Federal District Do You File In?
District of Colorado - a single statewide district based in Denver, serving the entire state.How Much Does a Bankruptcy Attorney Cost in Colorado?
Chapter 7 attorney fees in Colorado typically run $1,200 to $2,500, on top of the 338 federal filing fee.
Common Mistakes Colorado Filers Make
Assuming a wildcard exemption exists. Colorado has none — property beyond the homestead, vehicle, and household goods categories has to fit another specific statutory allowance to be protected.
Not checking eligibility for the age-60/disability homestead increase, which can meaningfully raise the protected amount.
Overlooking a non-filing spouse’s income in the means test.
Underestimating Colorado’s high median income threshold when planning the timing of a filing.
A Realistic Example
Consider a filer we’ll call Nathan, living in Aurora. He works in aerospace manufacturing and owns his home with about $220,000 in equity, plus a car worth $12,000 with no loan remaining.
Colorado’s $250,000 homestead exemption fully covers his equity with some room to spare. His $12,000 vehicle falls comfortably under the $15,000 vehicle exemption. His attorney confirms both his major assets are fully protected.
His income falls below Colorado’s median for a household of one, so he qualifies for Chapter 7 automatically. He files, attends the 341 meeting, and receives his discharge about ninety days later.
Frequently Asked Questions About Chapter 7 Bankruptcy in Colorado
Can I keep my house if I file Chapter 7 in Colorado?
Usually, if your equity is under $250,000 ($350,000 if you’re 60 or older or disabled). Equity above that isn’t automatically protected.
Does Colorado allow federal bankruptcy exemptions?
No. Colorado is an opt-out state, so filers must use Colorado’s own exemption list. Federal exemptions aren’t available.
Does Colorado have a wildcard exemption?
No. Colorado does not offer a wildcard exemption. Property must fit a specific statutory category — homestead, vehicle, household goods, tools of the trade — to be protected.
How much car equity can I protect in Colorado bankruptcy?
$15,000 in one vehicle — a relatively generous figure compared to most states.
What is the Colorado bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $87,940 for one person, $109,497 for two, $130,850 for three, and $153,501 for four, with $11,100 added per additional person.
Which bankruptcy court handles my case in Colorado?
Colorado has a single statewide bankruptcy court, the District of Colorado, based in Denver.
Where to Verify the Details
Colorado’s exemption statutes are published in Colo. Rev. Stat. § 38-41-201 et seq. and § 13-54-102. For current means test figures, check the U.S. Trustee Program website. Filing information is available through the District of Colorado bankruptcy court.
Alternatives to Chapter 7 in Colorado
If your income is too high to pass the means test, Chapter 13 bankruptcy in Colorado restructures debt into a three-to-five-year repayment plan instead of liquidation. If you’re comparing Colorado’s exemptions against a more generous state, see our Chapter 7 guide for Texas.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect Colorado bankruptcy exemption amounts and federal filing data as of July 2026.