In general, couples filing for bankruptcy jointly are allowed twice as much exempt property value, which makes sense since it is the property of two individuals instead of one. Some pieces of property, such as a home may have a specific allowable exemption value regardless of whether it is a couple filing or an individual.
Denver Bankruptcy FAQ:
Bankruptcy Exemptions
When filing for bankruptcy in Colorado…
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The term exempt property does not exist in a Chapter 13 filing but all property is protected during a Chapter 13 bankruptcy. Since payments are restructured, as long as remaining payments are made the property will be safe and will remain in the possession of the bankruptcy filer.
All items that have dischargeable debts will be the filers property free and clear following discharge and cannot be seized to repay debts. Property such as a home that cannot have its associate debt discharged can be foreclosed upon following discharge if the filer does not stay current with payments but if the home is classified as exempt during the bankruptcy it will not repossessed during the bankruptcy process.
To make property exempt, the bankruptcy filer must make sure to claim the desired items as exempt in the filing forms and properly identify each item and its value. There are limits to exemptions and allowable exemptions are specific to item types that can be considered day to day necessities such as clothing, transportation, housing, trade tools, pension, earnings, and household items.
An exempt item is one that cannot be repossessed or sold to repay a bankruptcy filers debts during a liquidation. Exempt items will remain in the possession of the filer during and following a bankruptcy.
