Colorado Bankruptcy Exemption Law at a Glance. In sum, bankruptcy exemptions are based on which laws apply to the place used as a debtor’s domicile for exemption purposes.In general, the major Colorado bankruptcy exemptions include Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed.The Colorado homestead exemption allows homeowners who file bankruptcy to protect $75,000 of equity in their home ($105,000 if they are 60 or older). Unlike other Colorado exemptions.