homestead exemptionn.
Reviewed by Owen Hathaway, AttorneyUpdated June 15, 2026A law that shields a chunk of home equity from most creditors. In Colorado it's automatic and generous.
A homestead exemption protects a set amount of equity in a person's primary residence from seizure by most creditors and in bankruptcy. It does not erase mortgages or voluntary liens, but it shields equity from judgment creditors.
Where home equity falls within the exemption, a judgment creditor generally cannot force a sale to reach it.
Colorado's homestead exemption is automatic (no filing required) and protects $250,000 of equity, or $350,000 if the owner, spouse, or a dependent is 60 or older or disabled, under C.R.S. §§ 38-41-201 et seq. (raised by SB 22-086 in 2022). A federal cap of $214,000 can apply to recently acquired equity in bankruptcy (11 U.S.C. § 522(p)). Wyoming's homestead exemption is $100,000. Unlike Colorado, Wyoming gives each co-owner of property their own exemption, so the amount is effectively $200,000 for a married couple. (Wyo. Stat. § 1-20-101)
Related terms
- asset protection planningArranging ownership of assets in advance and lawfully so they are harder for future creditors to reach, done before a claim arises rather than after.
- bankruptcy estateEverything a debtor owns at filing, gathered into a single legal pool. Exemptions then pull protected property back out to the debtor.
- Chapter 7The most common form of bankruptcy: eligible debts are wiped out in a few months, with exemptions protecting most or all of an honest debtor's property.