In today’s slow economy, more U.S. consumers than ever are faced with impossible amounts of debt - and Colorado is no exception. Many Colorado residents, faced with crippling debt, are contemplating bankruptcy. In some instances, bankruptcy is a logical choice for consumers looking for a way to start over. However, many consumers are reluctant to file bankruptcy because they fear losing important assets like their home, car, or retirement benefits. Fortunately, the State of Colorado allows residents to keep their most important possessions while relieving themselves of crippling debt.

Colorado is one of the more bankruptcy-friendly states in the country. Unlike many other U.S. states, Colorado has relatively relaxed exemption rules for Chapter 7 bankruptcy filers. An exemption rule allows a person filing bankruptcy to keep certain assets ?out? of the bankruptcy. This means that filing bankruptcy can get you out from underneath unsecured debts without losing your vehicle or your home.

Bankruptcy exemptions exist because the founders of the United States believed that the common person is entitled to protection from creditors. The right to file bankruptcy is protected in the U.S. Constitution, and since the United States has been founded, many famous business owners and politicians have taken advantage of this legal right. Henry Ford, Abe Lincoln, Mark Twain, and Walt Disney ? among many others ? have all taken advantage of their constitutionally protected rights and filed bankruptcy.

First and foremost, the purpose of bankruptcy is to protect consumers from crippling, overwhelming debt. Since protection is the ultimate goal of bankruptcy, Colorado’s lawmakers have defined fairly generous exemptions for residents. Specifically designed to help consumers start over, Colorado allows consumers to exempt as much as $60,000 dollars worth of home equity. This allows people to file bankruptcy and start their lives over without losing their most valuable asset (their home).

A person’s home isn’t the only asset that’s exempted. Colorado also allows consumers to file bankruptcy without losing their vehicle. Since cars are so important in our everyday lives, it makes sense that they should be protected during bankruptcy. Colorado consumers who file bankruptcy are also allowed to keep tools that are necessary for work, retirement assets, and basic necessities such as clothing and furniture.

Colorado’s bankruptcy exemption rules are designed to help consumers, but they’re not some sort of pass that allows people to avoid their obligations. When a consumer files bankruptcy, any cash, second homes, or valuables they have may be taken and distributed to creditors. These valuables can include clothing, jewelry, furniture, artwork, and even family heirlooms. If you’re serious about filing bankruptcy and you’d like to avoid losing your valuables, there are some strategies you can implement, but you must consult with a bankruptcy attorney to learn more about these strategies and how to implement them.

Bankruptcy is serious business, and anyone considering bankruptcy would be wise to speak with an attorney. A bankruptcy lawyer can advise you, help you prepare, and guide you through the bankruptcy process, and they can help you keep from making mistakes during your bankruptcy that could cause you to lose property or cause other legal problems.

Certainly, bankruptcy is a serious matter that is not for everyone. While bankruptcy allows consumers to start over, it’s not a legal trick that can be used to avoid responsibility. However, for many people who are facing overwhelming debts, bankruptcy is a logical financial choice. If you are a Colorado resident who is considering bankruptcy, you can rest assured that you can file without losing your home, vehicle, or retirement. Your next step is to contact a bankruptcy lawyer and discuss your options.

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