Colorado Bankruptcy Laws - Homestead Exemption Value

Colorado Revised Statutes "38-41-201. Homestead exemption. Every homestead in the state of Colorado occupied as a home by the owner thereof or his or her family shall be exempt from execution and attachment arising from any debt, contract, or civil obligation not exceeding in value the sum of forty-five thousand dollars in actual cash value in excess of any liens or encumbrances on the homesteaded property in existence at the time of any levy of execution thereon. 38-41-205. Of what homestead may consist. The homestead mentioned in this part 2 may consist of a house and lot or lots or of a farm consisting of any number of acres."

Operation of Laws

Value in Colorado bankruptcy courts is determined based upon the fair market price, less amounts owed. "Fair market" is not a retail value expected by professional sellers or advertisers. Likewise, forced liquidation values are not representative of a fair market. The value of property is an estimate of an agreement reached between a willing buyer and a willing seller under current market conditions. Creditors may file objections to the calculation of equity which may be subject to disbursement.

See also, Federal Exemptions

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