What is an “exemption” and what would be “exempt”?
Certain property is protected from creditors in bankruptcy and is known as “exempt” property. Exactly what property is protected depends on the exemption scheme chosen. In many states, you can either exempt the certain property or exempt any “property that is exempt under [other] Federal law…or State or local law that is applicable…” In other states, you can only choose the “other Federal and State law exemption scheme.” These states have “opted out” of the bankruptcy exemption scheme. Determining what property in Colorado is exempt requires a complete understanding of the laws governing residency within states and the exemption laws of the state of Colorado.
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