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Millions of Americans struggle with long-term debt, and many of them find themselves in this position through no fault of their own. What are people supposed to do when faced with mounting bills because they’ve lost their job or suffered a serious illness? If you’re behind on bills with no relief in sight, If creditors are harassing you through phone calls and other tactics or threatening you with wage garnishment, liens, foreclosure or eviction, you need the help of an experienced Colorado bankruptcy attorney.
Debt can take many different forms and can quickly become overwhelming if it’s not dealt with in a timely manner. Whether you have unpaid medical bills, late mortgage payments, credit card debt, or any other type of debt, bankruptcy can help you to reduce or eliminate your debt legally.
Many of our clients come to us during the absolute lowest points of their lives. Although your finances may seem overwhelming, we want to assure you that your financial troubles can be resolved. Our experienced Colorado bankruptcy lawyers can handle all legal aspects of your case so you can focus on what matters: living life free of the burden of debt.
There are a lot of concerns and questions associated with bankruptcy. Our experienced Colorado bankruptcy lawyers have consolidated a lot of the most common bankruptcy questions below. However, it’s important to remember that even a common bankruptcy question can have different answers depending upon the facts and circumstances unique to each bankruptcy case. It is important to note these answers to common bankruptcy questions are just a starting point; for legal advice contact our experienced Greeley bankruptcy attorneys.
While Chapter 7 and Chapter 13 both offer debt-relief options, they go about it differently. Your unique financial standing will determine which one you can pursue.
Chapter 7, also known as liquidation bankruptcy, is the most common form of bankruptcy filed by Colorado residents. Under Chapter 7, a court-appointed trustee collects the property of the individual filing for bankruptcy (known as the “debtor”) and liquidates any non-exempt property.
The proceeds of this liquidation will then be collected by the trustee and distributed to creditors in order to satisfy any claims they may have.
Chapter 13 bankruptcy, also known as a wage-earners plan, is best described as a financial reorganization of the individual’s debts, allowing the debtor to repay creditors over an extended period of time (usually between 3 to 5 years) in accordance with a Chapter 13 plan. Upon the successful completion of this plan, many unsecured and secured debts accounted for under the plan will be discharged.
It is important that you consider all of your options when filing for bankruptcy in Colorado as there are several key distinctions between the forms that can have a significant impact on your financial future. If you need help figuring out whether to file chapter 7 or chapter 13 bankruptcy in Greeley, contact our CO bankruptcy attorneys today for a no-cost case consultation.
In 2005, Congress passed a new law that is referred to as the Bankruptcy Abuse Prevention and Consumer Protection Act. It makes it harder to file for bankruptcy. Today in order to file for bankruptcy you need to take a means test that will determine your assets and income versus your ability to pay your debts. Thus, to be able to file for bankruptcy you must meet all of the conditions, including passing the means test as well as getting credit counseling. We would advise you to seek the counsel of a bankruptcy attorney who has handled hundreds of cases to determine if you qualify for bankruptcy.
Once your bankruptcy lawyer and you have discussed all of your options and you have decided to file for bankruptcy it is mandatory that you get credit counseling. The briefing can be in person, by telephone, or via the Internet, and must be done in the previous 180 days before the date you file bankruptcy. Once you complete the course you will receive a certificate that you must file along with your bankruptcy petition. You can find state-approved credit counseling agencies through the Department of Justice’s Bankruptcy site, or your Greeley bankruptcy attorney can help you find a credit counselor.
Although bankruptcy is processed on a federal level, the government allows each state to draft a list of bankruptcy exemptions. Colorado has what’s called the Homestead Exemption that allows you to protect up to $75,000 of the equity in your home or mobile home. This amount increases to $105,000 for homeowners who are 60 or older, who have a disability, or who have a dependent or spouse with a disability.
Simply put, an exemption is a law that protects your property when you file for bankruptcy. Basically, bankruptcy exemptions level the playing field so that getting a fresh start doesn’t require you to start from scratch. While there is a list of federal exemptions in the Federal Bankruptcy Code, Colorado does not allow filers to use this list, as the state has provided its own (more generous) list of exemptions. Some examples of Colorado state bankruptcy exemptions include:
The primary difference between unsecure and secure debt is the presence or absence of collateral. Unsecured debt has no collateral backing and can include
Secured debt uses some form of property as collateral for the loan. Some examples of secure debt are
All unsecured debt, including medical bills and credit card obligations, are almost always entirely wiped out when you file for Chapter 7 bankruptcy.
If you file for Chapter 13 bankruptcy, all debt collection from overbearing creditors is stopped, and you are given a time frame (usually between 3 to 5 years) to pay off all debts. Once that court-appointed time frame is over, and you’ve made all of your payments, the debts are erased.
If you’ve fallen victim to a predatory payday loan, also known as a check advance loan, deferred deposit loan, quick cash loan, or a payday advance, bankruptcy will most likely be able to provide relief. While Chapter 7 bankruptcy will discharge all unsecured debt (with few exceptions), Chapter 13 does require the debtor to pay back their debts over a period of time. The good news for Chapter 13 filers is that the majority of your debt repayments will go to paying off your priority debts such as mortgages, auto loans, and taxes. After these are satisfied any remaining funds are put towards unsecured debt payments, such as payday loans and credit card debt. Regardless of whether you end up filing Chapter 7 or Chapter 13 bankruptcy in Colorado, once your bankruptcy has been finalized, you no longer owe the payday loan organization any money.
Credit card companies and debt collection agencies can garnish your wages if they have a court judgment. Other types of creditors, including federal, state, or municipal taxing authorities, federal student loan servicers, and creditors for domestic support obligations such as child support or alimony don’t require a court judgment for garnishing, as there are different limits and rules for these types of creditors.
Once you file for bankruptcy, all wage garnishment is ceased, under what is called an automatic stay.
If you’re tired of hearing your phone ring off the hook from debt collectors and credit companies, an automatic stay will change your life. As soon as you file for bankruptcy in Denver, the automatic stay injunction immediately triggers, which prevents collectors from contacting you about your debts as well as temporarily halting some debt collection processes such as
The short answer is no, you should not use your credit cards for unnecessary items with the intent to defraud the credit card company out of that money by filing for bankruptcy. If the credit card company can prove that you used your credit cards fraudulently, the court can order the debt not discharged, and you will have to pay it back. Additionally, as the credit card company has lent you money based on your promise to repay it, and you had no intention of repaying it, you may also incur criminal fraud charges on top of having to repay all of the debt.
Never trust a debt collector to give you accurate financial advice. Bankruptcy laws were written to help people like you get a fresh, dignified start, which wouldn’t be possible if filing for bankruptcy negatively impacted your life forever.
Chances are good that if you’re considering filing for bankruptcy, your credit score has already taken a dip, or even a dive because you’ve made late payments or missed payments altogether.
Allowing continual negative marks to be recorded on your credit report can be worse for your credit than filing for bankruptcy. Bankruptcy is recorded on your credit report for no more than 10 years and by using credit wisely after filing bankruptcy you can quickly re-establish a good credit score beginning almost immediately after filing.
Additionally, filing for bankruptcy may even cause a rise in your credit score. That is due to large amounts of debt being discharged at once. On average, people restore their credit rankings to good standing within 1 to 3 years.
The short answer is, yes, you can. This is called filing pro se. However, the old adage of “just because you can, doesn’t mean you should” definitely comes into play here. Bankruptcy laws are complex and require a thorough examination of your past finances as well as an understanding of the Federal Bankruptcy Code that most average people just don’t have. Consider hiring an experienced and knowledgeable Greeley County bankruptcy lawyer to help shoulder the burden. Listed below are just a few ways we can help you if you’re considering declaring bankruptcy:
Serving as the county seat of Weld County, Greeley is home to over 100,000 residents, and a mere 50 miles northeast of Colorado’s state capital, Denver. Unlike other Colorado towns, which were mostly settled by pioneers looking to strike it rich during the gold rush, Greeley started as The Union Colony of Colorado, an experimental utopian farming community. The city was renamed Greeley, in honor of the famed founder of the New York Tribune, Horace Greeley, although the man himself never actually lived in the colony.
Modern Greeley may have left behind the utopian society ideals of the past, but it still holds some very unique accolades. In 2017, the website 24/7 Wall St. voted Greeley the Happiest City in America, and in 2015, Greeley entered the Guinness Book of World Records for the longest unbroken string of chalk pavement art, measuring in at over 18,000 feet!
Greeley is also home to several annual events and festivals that draw residents and visitors from all over. The Greeley Stampede, a summertime staple of Greely for almost 100 years, is a weeklong celebration that includes rodeo events, carnival rides, concerts, a parade, and fireworks shows. Once considered the largest festival/fair in the world during the 1920s, today it still manages to be one of the largest Fourth of July celebrations in the entire country.
Another popular seasonal event in Greeley is The Festival of Trees. Every winter for the past 30+ years, Greeley has hosted a month-long celebration of all things winter. Featuring several themed events throughout November and December, visitors to the festival can stroll amongst yuletide displays, while being serenaded by holiday choir singers and musicians.
Don’t let mounting debt destroy your ability to enjoy all that Greeley has to offer. It only takes one unexpected hit to your finances to leave you struggling to keep your head above water.
It’s time to consider bankruptcy if your life has been taken over by looming foreclosure, constant badgering phone calls from creditors, lawsuits, or garnishments of your wages or property. Or maybe your debt has you trapped due to the amount of each payment and the extent of the debt. Many kinds of debt can get you into these situations, including medical bills, credit card balances, falling behind on your mortgage, payday loans, loans and back taxes owed to the government, and even car repossessions.
Bankruptcy doesn’t have to be scary, and you don’t have to do it alone. Our Greeley bankruptcy lawyers invite you to contact us and schedule a free confidential consultation to review your financial situation and what options we can provide to protect you from creditors.