It’s likely you will be able to keep your home when filing for either Chapter 7 or Chapter 13 bankruptcy in Denver or elsewhere in Colorado. The question becomes, should you?
The Denver bankruptcy attorneys at George T. Carlson & Associates will assist you in conducting a thorough review of your personal financial situation; together we will discuss your options and develop the best plan to lead you to a sound financial future.
A Chapter 13 or Chapter 7 bankruptcy filing in Colorado can both assist you in keeping your home, should you decide it’s in your best interest to do so.
Keeping my Home through Denver Bankruptcy
- Chapter 7: Under Colorado law, you can exempt up to $60,000 in home equity from bankruptcy ($90,000, if 60 years old or disabled). Thus, if you have less than that amount of equity, you can complete the Chapter 7 bankruptcy and keep your home as long as you are current on the payment. After the implosion of the real estate market and the Great Recession, many homeowners have little or no equity and so would be eligible to keep their homes under Chapter 7. The question then becomes whether they should. Homeowners who are significantly upside down on their mortgage may be better off to jettison both the home and the debt through bankruptcy.
- Chapter 13: For those facing foreclosure, or who are behind on their payments, a Chapter 13 bankruptcy may be filed before the sale date. This delays the foreclosure and permits you to reorganize your debt. Filing this type of bankruptcy will also permit you to repay the past due amount over a 3- to 5-year period.
- Additionally, a second or third mortgage can be stripped off provided that the balance of the first mortgage exceeds the fair-market value of the house.
Colorado Bankruptcy Reaffirmation Agreements
Lenders who have your home as collateral have no right to repossess, so long as the debtor is making payments and otherwise abiding by the mortgage agreements. We never recommend reaffirmation of a home mortgage.  In all cases, consulting an experienced Denver bankruptcy lawyer is the best course of action when deciding which debts to discharge, which to affirm, and whether to sign a reaffirmation agreement.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
