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I have a rental property worth $130.000 and another home with 0 equity, I live in, both in Colorado.

Denver, CO |

Will the homestead exemption cover a rental property?

Attorney Answers 6


  1. Hopefully one of our many experts in bankruptcy law here in Denver will chime in. My understanding is that the homestead exemption only applies to the home in which you actually reside. It normally does not apply to a second home or to rental property.

    The information provided in this answer does not create an attorney-client relationship. If you are interested in his legal services, feel free to call Chris at (303) 409-7635 at his law office in the Denver Tech Center. All initial consultations are free of charge.


  2. I have never seen a homestead exemption apply to a rental property. If you have an asset like this, why don't you settle your debts yourself?


  3. The homestead exemption is designed to protect your home. Consult with a bankruptcy attorney to see if chapter 13 can help you.


  4. There is much information you do not mention. Is the rental property free and clear? Is there a tenant ther currently? What other income do you have? How much debt are you struggling with?

    The homestead exemption only applies to your home - the property in which you reside. If you have a debt load that you cannot manage you should consult with an experienced bankruptcy attorney who files both chapter 7 and chapter 13 cases. Such a lawyer will be able to review your situation and help you determine what your options are. Bankruptcy is a very complex area of law and with what is at stake it will well worth your while to hire a lawyer to help you do it right.


  5. There is no homestead exemption for rental property. If you want to protect the equity in your rental property, you or a family member have to live there.

    You can reach Harkess & Salter LLC at (303) 531-5380 or info@Harkess-Salter.com. Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.


  6. My collegues raise good points, the most important one of which is that we don't have enough information. The homestead exemption is intended to protect your primariy residence, but you can chose which property is your primary residence. You should seek counsel before you make any decisions and while you still have time to do what little planning is left under the new bankruptcy code. Good luck!

    This general response is not intended to be legal advice because I don't have all the facts. The particular facts in each instance will change the recommendation significantly. Any statements made in your posting on Avvo are not protected by the attorney-client privilege because they are shared with third parties. I require a written contract for legal services, so an attorney-client relationship may not be presumed merely by my response to an Avvo posting.

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