• The United States bankruptcy code allows for consumers to keep certain assets that are considered exempt. Exempt assets are not eligible for seizure by the trustee in order to sell and repay creditors. The state of Colorado chooses to have specific state exemptions instead of using the federal bankruptcy exemptions.
  
  

Homestead and Property

• Under Colorado law, debtors can retain real property with up to $60,000 in equity under the homestead exemption. If the debtor or his spouse or dependent is over the age of 60 and disabled, the homestead exemption increases to $90,000. Proceeds of a sale are considered exempt after two years since the sale date. In addition, the state's personal property exemptions allow an exemption for motor vehicles with up to $5,000 in equity or $10,000 if used by an elderly or disabled debtor. Personal property such as clothing, family pictures and books are exempt up to $1,500 and jewelry is exempt up to $2,000.
  
  

Wages and Pensions

• Colorado considers either the minimum 75 percent of unpaid wages that have been earned or 30 times the federal minimum wage to be exempt. The greater of the amounts will be used. Also exempt are tax retirement accounts such as traditional and Roth IRAs up to $1.09 million per person. Pensions for teachers, public employees, police officers, firefighters and veterans are also exempt. Exemptions are available for public benefits, including unemployment, worker's compensation and veterans benefits. Any items that are required for work are also exempt up to $20,000.
  
  

Insurance Payments

• Colorado law has specific exemptions for insurance payments. If a life insurance policy states that proceeds are prohibited from being used to pay creditors, all proceeds are exempt regardless of amount. Group life insurance policies and proceeds, as well as fraternal benefit society benefits are also exempt. If disability benefits are paid in one lump sum, the entire amount is exempt; otherwise the exemption is capped at $200 per month. Homeowner's insurance proceeds are exempt one year after they are received, up to the allowed homestead exemption amount. Proceeds received from child support or alimony payments are exempt.