To file for bankruptcy in Colorado, you file a petition with the U.S. Bankruptcy Court for the District of Colorado in Denver, but several steps have to happen first. You pick between Chapter 7 and Chapter 13, pass a means test if you want Chapter 7, complete an approved credit counseling course within 180 days of filing, pull together detailed financial records, and prepare the federal bankruptcy forms. Colorado’s exemption rules decide what property you keep, and they’re more protective than many people assume. The sequence below walks through what each step actually requires.
Chapter 7 or Chapter 13
Chapter 7 is liquidation. A court-appointed trustee reviews what you own, sells anything that isn’t protected by Colorado’s exemptions, and distributes the proceeds to creditors. Qualifying unsecured debt that remains is discharged, usually within four to six months.1United States Courts. Chapter 7 – Bankruptcy Basics Most Colorado Chapter 7 cases turn out to be “no-asset” cases, where the exemptions cover everything and the trustee sells nothing.
Chapter 13 is a repayment plan. You keep your property and propose a three-to-five-year plan under which you pay a trustee each month, who distributes the money to creditors. Remaining qualifying debt is discharged when the plan is complete. Chapter 13 is the route if you earn too much to pass the Chapter 7 means test, or if you need to catch up on a mortgage or car loan without surrendering the collateral. There are debt caps: secured debts must be below $1,580,125 and unsecured debts below $526,700.2United States Courts. Chapter 13 – Bankruptcy Basics
The Means Test
Chapter 7 is not open to every income level. If your household income is high enough, the court presumes that a Chapter 7 filing would be an abuse of the system and will push you toward Chapter 13 instead.3Office of the Law Revision Counsel. 11 U.S. Code 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
The first step averages your household income over the six calendar months before filing and compares it against Colorado’s median income for your household size. For cases filed between November 1, 2025, and March 31, 2026, the Colorado thresholds are:4United States Department of Justice. Census Bureau Median Family Income By Family Size
- 1 person: $85,685
- 2 people: $106,690
- 3 people: $127,495
- 4 people: $149,566
- Add $11,100 for each additional person
Below the threshold, you pass automatically. Above it, you move to a second calculation that subtracts allowed expenses from income and multiplies the result by 60 months; if the number exceeds the statutory limits, the presumption of abuse kicks in.1United States Courts. Chapter 7 – Bankruptcy Basics The means test also sets the length of a Chapter 13 plan: below-median filers get three years, above-median filers must propose five.
Credit Counseling Before You File
You cannot file a petition until you have completed a credit counseling briefing from an agency approved by the U.S. Trustee Program, and the session must happen within 180 days before filing.5Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor Most approved providers offer the course online or by phone, and it runs about an hour. You get a certificate of completion that must be filed with your petition. The Department of Justice keeps a searchable list of approved agencies by state and judicial district.6United States Department of Justice. List of Credit Counseling Agencies Approved Pursuant to 11 U.S.C. 111
Documents You Need to Pull Together
The forms demand a complete accounting of your finances. Before you sit down to fill anything out, collect:
- Pay stubs for the last six months, tax returns for the last two years, and any self-employment or side income records
- Bank and investment statements, vehicle titles, real estate deeds, and estimated values for personal property
- Statements from every creditor, with account numbers, balances, and monthly payments
- Records of property transfers, large payments to creditors, or gifts in the last two years
Leaving something out causes real damage. An omitted asset looks like concealment. An omitted creditor may not receive notice, which can mean the debt survives the bankruptcy.
Filing the Petition
Bankruptcy uses standardized federal forms, available on the U.S. Courts website. The core set includes:7United States Courts. Bankruptcy Forms
- Official Form 101, the voluntary petition
- Schedules A/B through J (Forms 106A/B–106J), covering property, exempt property, secured and unsecured creditors, income, and expenses
- Official Form 107, the statement of financial affairs
- Forms 122A-1 and 122A-2, the means test calculation for Chapter 7
- Forms 122C-1 and 122C-2, the income and disposable income calculations for Chapter 13
You file the completed package with the U.S. Bankruptcy Court for the District of Colorado in Denver, either electronically through the court’s ECF system, in person, or by mail.8United States Bankruptcy Court. Court Location – District of Colorado The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You can request to pay in installments. Chapter 7 filers with income below 150% of the poverty guidelines can apply for a full fee waiver using Official Form 103B.9United States Courts. Application to Have the Chapter 7 Filing Fee Waived
The moment the court receives your petition, the automatic stay takes effect. Lawsuits pause, wage garnishments stop, creditor calls must cease, and foreclosure sales are halted.10Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay For anyone facing collection pressure or an imminent foreclosure, the stay is often the most immediate reason to file.
What Colorado Lets You Keep
Exemptions decide which assets you keep regardless of the chapter you file. Colorado requires you to use state exemptions rather than the federal set, so these are the numbers that control.
Homestead
Your primary residence is protected up to $250,000 in equity. If you, your spouse, or a dependent is 60 or older or has a disability, the figure rises to $350,000.11Justia Law. Colorado Revised Statutes 38-41-201 Spouses filing jointly cannot double the homestead exemption.
Vehicles, Personal Property, and Retirement
Colorado protects up to $7,500 in equity across one or two motor vehicles, rising to $12,500 for elderly or disabled debtors.12Justia Law. Colorado Revised Statutes 13-54-102 Other key personal property exemptions:
- Household goods up to $6,000 (furniture, appliances, electronics, and similar items)
- Clothing up to $2,000 per person
- Jewelry and watches up to $2,500 per person
- Tools of the trade up to $20,000 in business equipment, tools, and supplies
Colorado has no wildcard exemption, so you cannot apply a general-purpose dollar amount to miscellaneous assets that don’t fit a named category. Retirement accounts are broadly protected under federal law: ERISA-qualified plans such as 401(k)s, 403(b)s, and pensions are fully exempt with no cap, and traditional and Roth IRAs are protected up to roughly $1.5 million. Colorado public employee plans, including PERA, are fully protected. These figures are adjusted periodically, so verify current numbers before filing.
After You File
The 341 Meeting
About four to six weeks after filing, you attend a meeting of creditors, known as the 341 meeting. The trustee runs it, not a judge, and creditors rarely appear.13United States Department of Justice. Section 341 Meeting of Creditors In Colorado these meetings typically happen by video conference. You are placed under oath and asked questions to verify your petition: income, assets, debts, recent transactions. If your paperwork is in order, it usually takes 10 to 15 minutes.14Office of the Law Revision Counsel. 11 U.S. Code 341 – Meetings of Creditors and Equity Security Holders
Reaffirmation Agreements
If you want to keep property tied to a secured debt such as a car loan, you may sign a reaffirmation agreement, a new contract that keeps you personally liable for the debt in exchange for keeping the collateral. Reaffirmation is voluntary, and the agreement must be filed with the court within 60 days after the first date set for the 341 meeting.15Legal Information Institute. Federal Rules of Bankruptcy Procedure Rule 4008 – Reaffirmation Agreement and Supporting Statement
Debtor Education and Discharge
Before you can receive a discharge, you must complete a debtor education course covering budgeting and financial management. This is a separate requirement from the pre-filing credit counseling and uses a different list of approved providers.16Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge Skip the course and no discharge issues. Most courses are available online and take about two hours.
In a Chapter 7 case, the discharge order typically arrives 60 to 90 days after the 341 meeting, wiping out qualifying unsecured debts such as credit cards, medical bills, and personal loans.16Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge In Chapter 13, the discharge arrives only after you complete all payments under the plan, three to five years later.17Office of the Law Revision Counsel. 11 U.S. Code 1328 – Discharge
Debts Bankruptcy Will Not Erase
Several categories of debt survive both Chapter 7 and Chapter 13.18Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge The most common nondischargeable debts are:
- Child support and alimony (domestic support obligations are priority debts and are never discharged)
- Most recent income tax debts; older taxes can sometimes be discharged if the return was filed on time, the tax was assessed more than 240 days before filing, and the return was due more than three years ago
- Student loans, unless you can prove “undue hardship,” a notoriously difficult standard
- Debts arising from fraud or false financial statements
- Debts for death or personal injury caused by driving while intoxicated
- Criminal fines and court-ordered restitution
- Debts owed to any creditor you failed to list, if the creditor did not learn of the case in time
Chapter 13 discharges are slightly broader than Chapter 7 discharges and can eliminate certain debts such as willful property damage that would survive Chapter 7.17Office of the Law Revision Counsel. 11 U.S. Code 1328 – Discharge That broader discharge is one reason some filers who could qualify for Chapter 7 choose Chapter 13 anyway.