The Colorado homestead exemption is up to $60,000 – $90,000 if an owner is disabled, or sixty years of age, or older. So, if you file for bankruptcy in the state, you will be able to keep your home if you owe less than the exempted amount on the mortgage. If you owe more than the exemption amount allowed by the state, your residence may be sold to help pay your creditors, but you will be entitled to any equity you have in the home.
The only restriction attached to the homestead exemption is that you have to have purchased your home in the state, and taken ownership, 40 months before you file for bankruptcy. If not, federal law will stipulate the amount of your exemption.
Your Elbert County bankruptcy lawyer will advise you on the Colorado bankruptcy laws, and how they apply to your case. He will help you determine the best way to file, and explain to you what will happen after you do. Parker lawyers are happy to offer you a consultation with an Elbert County bankruptcy lawyer, call them @ 303-841-9525.