When it comes to filing for bankruptcy in Denver, many half truths, myths, rumors and contradictions exist. This is unfortunate. Dealing with bad debt is stressful enough. Deciding to seek help takes courage. Consumers deserve immediate access to experienced legal representation and the best available advice.
That’s why the Denver bankruptcy attorneys at George T. Carlson & Associates are committed to providing free and confidential consultations to clients considering bankruptcy throughout Colorado. There are two main forms of consumer bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy in Colorado
By far, the most common form of bankruptcy is Chapter 7, sometimes called a liquidation bankruptcy. Though in reality, there is typically nothing to liquidate. Nationwide, about three-quarters of consumer bankruptcies are filed as Chapter 7.
- Requires a debtor to satisfy a means test, designed to determine if there’s disposable income. If there’s significant disposable income, chapter 13 must be filed.
- Provides for significant exemptions – providing the debtor with the means to keep many assets while still seeking debt forgiveness. Up to $60,000 ($90,000, if 60 years old or disabled) in home equity and up to $5,000 ($10,000, if 60 years old or disabled) in vehicle equity are exempt from seizure, as are most funds held in retirement accounts, household and personal items and assets used in the course of employment.
- Schedule of assets and liabilities is submitted to the court.
- Schedule of current income and expenses is submitted to the court.
- Statement of financial affairs.
- Schedule of executor contracts and unexpired leases.
- One or more tax returns.
- Certificate of credit counseling.
- Evidence of income.
- Statement of net income and any anticipated increase in income.
- Student loan information.
- Trustee holds a meeting of creditors within 40 days of filing (in reality, few if any creditors attend). Debtor must attend meeting and answer truthfully.
- A discharge is issued, alleviating the debtor’s responsibility for most debts and prohibiting creditors from taking future collection action.
Chapter 13 Bankruptcy in Colorado
Those who do not qualify for Chapter 7 bankruptcy, or those who seek to protect significant non-exempt assets from seizure or save a home from foreclosure, may file for Chapter 13 bankruptcy protection, which provides protection from creditors during a 3- to 5-year repayment period with debt forgiveness possible for certain remaining debts.
- Eligible to wage-earners, self-employed or those operating a business with unsecured debts of less than $360,475 and secured debts of less than $1,081,400 (amounts subject to periodic change).
- Schedule of assets and liabilities is submitted to the court.
- Schedule of current income and expenses is submitted to the court.
- Statement of financial affairs.
- Schedule of executor contracts and unexpired leases.
- One or more tax returns.
- Evidence of income.
- Statement of net income and any anticipated increase in income.
- Student loan information.
- Trustee holds a meeting of creditors within 50 days of filing.
- Debtor files a repayment plan within 15 days.
- Court establishes priority, secured and unsecured claims.
- Unsecured claims need not be repaid in full as long as it pays the greater of monthly disposable income over 60 months or the value of non-exempt property.
- Duration of payment plan is established by income – three years if current income is less than state median and five years if greater than the state median.
- Payments are made to the trustee and distributed to creditors.
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. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
