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Is your phone ringing off the hook with calls from angry debt collectors?
Are you using credit cards to pay down other debts?
Have you fallen prey to a predatory payday loan?
Is your home or vehicle at risk because your income just won’t cover all of your obligations?
Most people struggle along in good faith for months or even years trying to keep up with credit card debt, car payments, and other loans by making minimum payments and racking up late fees. While this strategy can work in the short term to get through a rough patch, it is almost always unsuccessful over the long haul. A solution with a long-term goal in mind is the better choice. There’s no shame in saying ”I need help.”
Filing for bankruptcy is an important decision that has significant implications for your life. But when mounting debt begins to feel unmanageable, bankruptcy can provide relief. While it’s possible to file bankruptcy without engaging an attorney, an experienced Arvada bankruptcy lawyer can help you decide whether filing for bankruptcy is the most effective way for you to take control of your debt, or if there are other avenues available for you to pursue.
Bankruptcy statutes, rules, and exemptions can be a minefield for even the most money savvy. These cases are heard in federal bankruptcy court and move differently than a case would in state court. While most state court proceedings in Colorado often progress slowly, debt relief cases can proceed at a lightning pace. Such cases need the attention of an experienced and respected Arvada bankruptcy attorney.
Our knowledgeable Colorado legal professionals have designed this website to give you some basic information about filing for bankruptcy in Arvada. If you would like more specific information, please contact our firm to set up a free case consultation. We are dedicated to taking a case-by-case approach to help each client take control of his or her finances and future.
Let’s face it, for the average person, all of this can be pretty confusing and intimidating. If you’ve made the decision to file for bankruptcy, there will be a lot of paperwork in your future. While an experienced Colorado bankruptcy attorney can help you fill out all of the paperwork required for this process, it’s important for you to understand some basic bankruptcy terms, so that you can better understand the bankruptcy process.
Adversary Proceeding- An adversary proceeding is the bankruptcy court’s version of a civil action (a lawsuit), that takes place during a bankruptcy case. For more information on Adversary Proceedings, see Nolo.com’s adversary proceeding definition.
Automatic Stay- When you file a petition for bankruptcy with the Bankruptcy Court, all collection actions against you automatically stop. Any court judgment handed down before you filed for bankruptcy cannot be enforced against you or your property. This is called an “automatic stay.” The automatic stay is one of the biggest benefits of filing bankruptcy, if not the main reason people file. The automatic stay still prevents most collection efforts while your case is pending, especially if your case is a relatively simple and quick one.
Creditors– are persons or businesses that have loaned you money or who provided goods or services to you on credit.
Discharge- This is what you are seeking when you file for bankruptcy. This discharge order, given by the bankruptcy court, relieves you (the debtor) from all obligations to repay the debts that have been discharged by the court. However, this does not apply to secured debts or “non-dischargeable” debts.
Debtor- is a person who owes debts; in a bankruptcy proceeding, you are the debtor.
Exemptions- Exemptions allow you to keep a certain amount of assets safe in bankruptcy, such as a car, your home, or any professional tools you use for trade. Although Bankruptcy is a federal law, every state has different exemption limits, therefore it’s in your best interest to contact an experienced Colorado bankruptcy attorney to figure out which of your assets may be exempt under Colorado law.
Lien- This term is frequently used interchangeably with “secured debt.” A valid lien gives a creditor a legal interest in the property. It allows the creditor to claim the asset, sell it, and use the proceeds to pay down the unpaid debt. The most common liens are mortgages and car loans.
Means Test– In order to be eligible for Chapter 7 bankruptcy, you must first qualify via what is known as the “means test.” This “test” calculates whether you have the “means” to pay back a portion of what you owe to your creditors, and is used to prevent people with high incomes from wiping out debt they can afford to pay, via filing for Chapter 7 bankruptcy. For a more in-depth explanation of the means test, visit Debt.org’s Chapter 7 means test page.
Predatory Loan/Lender- Predatory lending is a term commonly used to describe certain unfair and deceptive practices engaged in by unscrupulous merchants that have unfair, misleading, or unaffordable terms that generally benefit the lender at the expense of the borrower. If you’re a fan of old mob movies, then the cliched “loan shark” character is a perfect example of a predatory lender.
Schedules- Bankruptcy schedules are the documents submitted to the court that include all relevant personal and financial information of the person filing. These forms may be submitted online or at the Federal Bankruptcy Court- District of Colorado, which is located in Denver.
Secure Debt- There are two types of debt – secured and unsecured. If you have pledged property as collateral for a loan, the loan is called a secured debt. Examples of secured debt include mortgages and car loans because the loan is “secured” by the car or home, which means that the person you owe the debt to can repossess the car or foreclose on the home if you fail to pay the debt.
Trustee- In a bankruptcy case, one of the key people is a person appointed by the court known as a “trustee.” The trustee’s duty is to manage the process and distribute the property of the person in bankruptcy. Additionally, the trustee must monitor the actions of the bankruptcy parties and make sure the process is run in compliance with applicable laws and the bankruptcy plan. For a more in-depth look at bankruptcy trustees, see The United States Courts Webpage on U.S. Trustees and Administrators.
Unsecured Debt- Debts for which collateral has not been pledged. Unsecured debts include medical bills, predatory loans like payday loans, and most credit card debts. Unsecured debt is generally wiped out by a Chapter 7 bankruptcy, and you no longer owe the creditor any money.
Understanding the different types of bankruptcy available to Arvada residents will help you figure out the next best step towards gaining financial solvency. There are several forms of bankruptcy, but the two most common, geared to help individuals struggling with financial burdens, are called Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy – Chapter 7 bankruptcy is the simplest and most common form of bankruptcy. In Chapter 7, all assets that the debtor owns are assessed by a court-appointed trustee. Any asset not protected under the exemption is liquidated, or sold, with the net proceeds distributed to creditors. Any leftover secure debt is then discharged, or erased. This process moves relatively quickly and can be completely discharged in 4-6 months. The caveat here is that you must qualify for Chapter 7 bankruptcy in Colorado by way of a means test. Some high earners may not qualify for Chapter 7. If you’re unsure if you would qualify for Chapter 7 bankruptcy or wish to know more about the means test, contact one of our Colorado bankruptcy lawyers for more information.
Chapter 13 Bankruptcy- Filing for Chapter 13 bankruptcy, also commonly referred to as reorganization bankruptcy, is a form of bankruptcy in which your finances are reorganized and a plan is developed for you to repay your loans in a set period of time. Chapter 13 is also sometimes referred to as wage earner’s bankruptcy, as regular income is required for anyone looking to declare. Since assets aren’t getting liquidated to help discharge debt in Chapter 13, filing for Chapter 13 tends to be a much longer process than filing for Chapter 7, as a plan is created to pay off debts over 3-5 years.
While the bankruptcy process is demanding, you don’t have to take on this challenge alone. Our Colorado bankruptcy attorneys can help you determine if you qualify for bankruptcy and explain how discharging your debt might allow you to start over financially.
There are few things that are more personal in life than your finances. If you’ve been losing sleep because you’re stressing over bills, just know that there are many debt relief options that filing for bankruptcy can bring. Listed below are just a few of the benefits that can occur if you choose to file bankruptcy in Arvada.
Stops Creditor Harassment- If you’ve been struggling to make payments on your outstanding debts, then you’re probably experiencing an increase in debt collection phone calls, emails, and letters. Sometimes, this contact is so extreme it borders on harassment. One of the most immediate and immensely gratifying benefits of filing for bankruptcy is an automatic stay. An automatic stay is a procedural tool in a bankruptcy case that effectively halts efforts by creditors to collect on your outstanding obligations. This means that your creditors are legally obligated to stop harassing you, and may face severe penalties from the federal court if the phone calls and emails continue.
Halts Repossession & Foreclosure- If you’re so far behind on your bills that you’re being threatened with repossession of your vehicle or foreclosure on your home, bankruptcy might be a viable option to help get you back on track. It’s important to note that mortgages and car loans are considered secure debt, which means that even if you file for Chapter 7 bankruptcy, these debts won’t be eliminated. What filing for bankruptcy can do is give you some time to organize your finances without worrying about waking up and finding your car has been repossessed.
Stops Wage Garnishment- A wage garnishment is where your employer deducts money from your pay and then delivers that money to your creditors. The automatic stay put in place immediately upon filing for bankruptcy will stop wage garnishment for the duration of the bankruptcy and you can deal with those debts through the bankruptcy process.
Wipe-out all Predatory Loans- As outlined above, a predatory loan can be just about any type of loan that gives the upper hand to the lender and stiffs the borrower out of their money through unfair or excessive lending terms. These terms can include unusually high-interest rates, fees and/or penalties, insurance, and other extra costs, or a payment plan that causes a borrower’s periodic payments or loan balance to increase over time. While there are currently no state laws regulating predatory lending in Colorado, there is still some good news if you’ve fallen victim to one of these shady businesses. If you qualify for Chapter 7 bankruptcy, all payday loans, check advance loans, and online payday loans will be discharged.
Erases Medical Debts- It’s important to note that, in the state of Colorado, you cannot file bankruptcy solely based on medical debt. Filing “medical bankruptcy” is a common misconception that many people who are considering bankruptcy have. But chances are if you have significant medical debt that you’re struggling to pay, some of your other bills may be outstanding as well, such as credit card debt or utilities. An Arvada bankruptcy attorney can help you on the path toward easing the heavy financial burden brought on by unexpected medical debt.
Prevent Loss of Utility Services- Services like electricity and water are a necessity. If you’re behind on utility bills and are in danger of having your services cut, filing for bankruptcy can allow you to halt a service interruption. Once again, it’s important to note that while bankruptcy may clear past utility debt- if you do not continue to make current or future payments, your utility services will be interrupted.
A vibrant agricultural community and home to more than 100,000 residents, Arvada was once known as the Celery Capital of the World. Originally settled in 1870 as a stop on the Colorado Central Railroad line, the city is now part of the Denver metropolitan area, in the middle of the Front Range Urban Corridor.
Residents and visitors to this part of the state tend to spend a lot of time outdoors, thanks to the semi-arid “steppe” climate, which provides low humidity and less than the national average amounts of rainfall. One of the most popular destinations is Olde Town Arvada, the historic downtown center of the city. As well as playing host to events like Yoga in the Square and Second Saturdays Concert Series and Street Fair, Olde Town is also home to a diverse array of shops, boutiques, galleries, events, restaurants, and breweries.
If the weather turns inclement and you’re looking for an indoor activity in Arvada, make sure to stop by the Cussler Museum. Dedicated to the housing and restoration of rare and vintage automobiles from all over the world, this museum is a must-see for any car-enthusiasts visiting the Denver area.
If debt is driving you crazy and you need some relief, contact our Arvada bankruptcy attorneys. We’re available to help you put creditors and predatory lenders in your rear view.
Our attorneys and experienced legal staff treat each case with the compassion and dignity that each of our clients expects and deserves. Our firm has been helping people in the Denver metropolitan area with bankruptcy and other cases for many years. We know the impact that bankruptcy can have on people and their families and we offer solutions both inside and outside of bankruptcy. We’re dedicated to helping you get the best possible outcome. Let us use our knowledge to help you deal with your debt.