When you declare personal bankruptcy—particularly if you are declaring Chapter 7, or “straight,” bankruptcy—some of your assets may be seized by the court. In these cases, your property will be sold in order to repay your creditors a portion of the money they were owed.

However, some assets are considered “exempt” and cannot be seized. In Fort Collins, if you bought your home at least 1,215 days before declaring bankruptcy, then the full equity of the home is considered exempt. Of course, if you have a mortgage, you must continue to make regular payments. Exemptions are also provided for up to $30,000 of personal property, including your vehicle. This increases to $60,000 if you are the head of your household. Several other exemptions are also available, including retirement and insurance benefits.

In court, it is your responsibility to demonstrate the exempt status of your property. Securing a qualified Fort Collins bankruptcy attorney, who can determine which of your assets qualify for exemption, is the first step to preparing for this process.