Statement of Financial Affairs

• Bankruptcy law in Colorado and all other states in the U.S. require a statement of financial affairs when submitting an application for Chapter 7 relief. This statement must include a detailed list of your income, balances of banks accounts, all debts related to taxes, all unsecured debts such as credits or medical bills and all secured debts such as a home mortgage or car loan. Any omission or error in your statement of financial affairs could cause your bankruptcy to be rejected by the court.
  
  

The Means Test

• In accordance with federal bankruptcy law in Colorado, you are required to pass a means test to be ruled eligible for Chapter 7 bankruptcy. The means test determines whether your income falls below the state's median income level. If your income does not fall below the state median income you are not eligible for Chapter 7 bankruptcy. According to the United States Department of Agriculture, as of 2009, the median household income in Colorado is $55,735.
  
  

Powers of the Court Clerk

• You are required to submit your bankruptcy application along with all applicable documentation to the court clerk's office in the district where you are filing for bankruptcy. According to the U.S. Bankruptcy Court District of Colorado, the law restricts what information the clerk may give you relating to your bankruptcy. It is illegal for the court clerk to dispense legal advice, give an interpretation of case law, explain the results of taking action or remaining inactive, or apply a rule or statute as it relates to your particular Chapter 7 bankruptcy. If you need help understanding the law or filing for bankruptcy, you should hire a bankruptcy attorney licensed to practice in Colorado.
  
  

Colorado Chapter 7 Exemptions

• Colorado law allows you to exempt certain assets from the Chapter 7 liquidation process. According to Colorado Statute 13-54-102, you may exempt up to $500 in clothing; up to $2,000 in jewelry; books and family pictures up to $500, one burial plot; up to $20,000 in equipment related to a trade or profession; up to $3,000 in such household goods as furniture and kitchenware; up to $5,000 in the equity of an automobile, and up to $1,500 in collectibles. Colorado law also allows a homestead exemption of up to $60,000. Any property remaining beyond the exempted limits may be sold off by the court to pay your debts.