Recent Colorado Law changes now allows you to protect up too $2,500 total in your bank account or accounts regardless of the source of the funds when you file a Chapter 7 or Chapter 13 Bankruptcy. This is a huge change in the law. Previously, money needed to be from certain sources such as, wages, social security, disability, unemployment, earned income credit to receive full or partial protection. So now, if you have $2,500 total in your bank account or accounts from a tax refund overpayment or a gift or some other source it is now protected.
This is not as simple as it sounds and you should consult your bankruptcy attorney regarding your situation to determining which funds are protected and which are not prior to filing a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.
