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If you are one of many millions of people struggling with debt problems, your life is full of uncertainty and pressure. You don’t have to go it alone. In fact, trying to handle any financial difficulties yourself can make matters worse.
The most important first step you can take on the road to a new financial future is to contact our Colorado bankruptcy attorneys for a free bankruptcy consultation. We’ll help you learn what your options are. It takes courage to admit that the problem has gotten out of hand. It’s also the smartest thing you can do if you feel that your debts are multiplying.
When you’re having financial problems, time is of the utmost importance. Acting quickly and hiring an attorney when you miss credit card payments or when your house is in danger of foreclosure is the first step in gaining control over your finances. Contact our experienced Colorado bankruptcy attorneys today to discuss your financial situation and see whether bankruptcy is right for you.
People get in financial trouble for a variety of reasons, some of which are simply beyond their control: job loss and business downturns, divorce, unexpected medical bills, and simply trying to keep up with family needs, to name a few. Our Loveland bankruptcy lawyers genuinely understand and want to help you find the best path back to stability. If your financial situation involves any of the following-
Use this as a wake-up call to seek help with your mounting debt. Being financially unstable isn’t a death sentence – it’s a condition you can definitely fix. But before you can start, you have to know to take the first step, which is contacting an experienced Loveland bankruptcy attorney. Our firm of knowledgeable legal professionals offer a free case consultation for every prospective client. Contact us today to see if bankruptcy is the right option for you.
During any type of bankruptcy case, the average person is bound to hear several unfamiliar words. Because one of the goals of our Loveland bankruptcy attorneys is that every client understands every part of the bankruptcy process, we have provided the following list of some of the most common terms you’ll likely see or hear if you file for bankruptcy in Colorado:
341 Meeting- A meeting of creditors at which the debtor is questioned under oath by creditors and a court-appointed trustee about his/her financial affairs.
Adversary Proceeding- A lawsuit filed separate from but related to a bankruptcy case. Also known as an AP, in a bankruptcy case, it’s an action commenced by either the debtor, the trustee, or a creditor filing a complaint against either a creditor or a debtor. For example, a creditor or the bankruptcy trustee might bring an adversary proceeding against the debtor to challenge the dischargeability of a particular debt, by alleging that the debtor has committed fraud or has failed to comply with court orders.
Automatic Stay- The automatic stay in bankruptcy is a temporary federal injunction that immediately stops most collection efforts by creditors, collection agencies, and government entities against debtors and their property. As soon as you file a bankruptcy petition, the automatic stay will suspend a variety of collection activities against you while you rehabilitate your finances or reorganize your debts. An automatic stay won’t stop all actions against you, and for more information on what an automatic stay can and can’t do, contact our Loveland bankruptcy attorneys today.
Creditors– are persons or businesses that have loaned you money or who provided goods or services to you on credit.
Credit Counseling- This is a course required of all debtors before they file for Chapter 7 or Chapter 13 bankruptcy. Credit counseling is used to examine all possible alternatives to filing bankruptcy, and must be done through a company approved by the court. For a list of approved Colorado Credit Counseling companies, you can speak to a Loveland bankruptcy attorney, or find a list on the Department of Justice website.
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.
Debtor Education Course- Paired with the Credit Counseling Course, the debt education course is another class that must be completed during bankruptcy, in order to get your debt discharged. Please note that the Debt Education Course and the Credit Counseling Course are two different programs and that both must be completed to discharge debt through bankruptcy.
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. Some examples of Colorado state bankruptcy exemptions include:
Our experienced CO bankruptcy lawyers can help you figure out which exemptions your assets qualify for.
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– Bankruptcy can be a highly efficient method of finding relief from seemingly insurmountable debt. However, to crack down on abuse of the system, the federal government introduced the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which imposed regulations on eligibility for certain forms of bankruptcy. For example, in order to file for Chapter 7 bankruptcy, individuals must pass a means test.
The means test is a formula based on the median income in Colorado and is used to determine whether or not you have funds available for debt repayment. If your monthly income is less than the median, you automatically qualify for Chapter 7 bankruptcy and no further calculations are required. If your monthly income is greater than the median, you will need to calculate your expenses to determine your amount of “disposable income.” The calculations can be complicated to complete, so the help of an experienced Loveland Chapter 7 bankruptcy attorney is suggested.
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.
The most common predatory loan in today’s society is Payday loans. Payday loans may go by different names — cash advance loans, deferred deposit loans, check advance loans, or online payday loans — but they typically work in the same way. These loans provide quick infusions of cash that can help you make it to the next paycheck. However, they also come with high fees and interest rates, which could lead to “debt traps” for borrowers. A debt trap is when a borrower falls into a long-term pattern of taking payday advances to pay the exorbitant finance charges and balances on prior payday advances. Because of this cycle, borrowers end up relying on high-interest payday loans as a source of income.
If you have fallen victim to a predatory payday loan, contact our CO bankruptcy attorneys for help with your case. And for more information on predatory loans visit the Fact vs. Fiction The Truth about Payday Lending Industry Claims on the Center for Responsible Lending’s webpage.
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- Secured debt is debt that is tied to or secured by an asset, such as a mortgage. It is security in case debt is not paid back. If the borrower cannot repay the loan or misses payments, the lender may seize and sell the collateral.
Trustee- In a bankruptcy case, one of the key people is a person appointed by the court known as a “trustee.” The trustee must 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- Refers to credit given to a borrower with no collateral. Unsecured debts include
Bankruptcy will eliminate most, but not all unsecured debts. Student loans, support payments, and court penalties and fines will not be eliminated. For more information on unsecured debt or to find out which of your unsecured debts may qualify for discharge through bankruptcy, contact our Loveland bankruptcy attorneys for a free case consultation.
As you can see, bankruptcy has its own language. This is by no means intended as a comprehensive or complete listing. However, we hope what is included may answer some of the questions you may have about bankruptcy. For a more in-depth list, you can visit the United States Courts Website- Bankruptcy Basics Glossary, or contact our Colorado Bankruptcy Attorneys. During your free case evaluation, we can answer any questions you may have about specific bankruptcy terms and how they relate to your case.
Once you’ve made the decision, with the help of a Loveland bankruptcy attorney, that you are ready to file bankruptcy, the next step is figuring out what type of bankruptcy you should file. 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 – This process is also known as a “straight bankruptcy” or “liquidation bankruptcy.” It is the most common bankruptcy filing, making up about two-thirds of all the bankruptcies filed around the country each year. A Chapter 7 bankruptcy will completely wipe out all of the debtor’s dischargeable debts via liquidation of the debtor’s assets, however, there is a caveat. If you wish to file Chapter 7 bankruptcy, you must qualify via a means test. If you need help figuring out if you qualify for Chapter 7 bankruptcy, an experienced Loveland Chapter 7 bankruptcy attorney can help you.
Chapter 13 Bankruptcy- Chapter 13 bankruptcy is a reorganization bankruptcy designed for debtors with higher incomes who have enough money left over each month to pay back at least a portion of their debts through a modified repayment plan. The amount you must pay back will depend on your income, expenses, and the type of debt you have.
Our Loveland bankruptcy attorneys are experienced with both Chapter 7 and Chapter 13 bankruptcies. We’re here to help you through this difficult time, and advise you on the best course of action for you, so contact us today for a no-cost case evaluation.
Is the stigma of bankruptcy keeping you from taking advantage of what could be the best option to address financial troubles?
Many people who are struggling to pay their bills try to hide it. Some may even go so far as to purposely adopt an extravagant lifestyle in public to mask the fact that they are struggling. Obviously, this only serves to make the problem worse.
If you’re hesitant to file for bankruptcy in Larimer County because of the stigma associated with it or because you are worried about what people might think, the following are some reasons why you should not worry about it.
Approximately 80% of Americans have personal debt.
Some famous people who have filed for bankruptcy include
Stan Lee (American comic book writer, editor, publisher, and producer)
Thomas Jefferson (3rd President of the United States, Founding Father)
Walt Disney (Animator, film producer, and entrepreneur)
John Wayne (Actor- True Grit, Stagecoach)
Mark Twain (Author- Adventures of Huckleberry Finn)
P.T. Barnum (Businessman, Founder- Barnum & Bailey Circus)
Jerry Lee Lewis (Singer/Songwriter- Great Balls of Fire, Whole Lotta Shakin’ Goin’ On)
Harry S. Truman (33rd President of the United States)
Colorado’s average consumer debt jumped from $131,995 in 2020 to $140,327 in 2021. (That’s over a 6% increase, which is one of the highest averages in the country)
Colorado private and federal student loan borrowers owe an average balance of $34,497
The median amount of debt in collections for Colorado is approximately $1600.
Over 10,000 Colorado residents filed for either Chapter 7 or Chapter 13 bankruptcy in 2021.
The average amount of debt by generation in 2021:
Gen Z (ages 18 to 23): $20,803
Millennials (ages 24 to 39): $100,906
Gen X (ages 40 to 55): $146,164
Baby boomers (ages 56 to 74): $95,607
Silent generation (ages 75 and above): $39,859
Although the stigma of bankruptcy varies greatly and there may be some truth to it, you shouldn’t dismiss the possibility and the potential positives of filing bankruptcy without careful thought. If you consider the above statistics before filing for bankruptcy, you’ll discover that you aren’t alone, and it isn’t shameful. If you’d like to do more research on debt statistics in the United States, visit the following websites
Don’t let the stigma of bankruptcy stop you from getting help with mounting debt. The benefits of bankruptcy can definitely outweigh the risks. There is no shame in putting yourself in a better position. Contact our Loveland bankruptcy attorneys to discuss your debt relief needs today.
Loveland, Colorado is the 3rd largest city in Northern Colorado, and the 14th largest city in the state, with a population of approximately 75,000 people. Home to one of the largest sculpture gardens in the country, and a nationally-famous valentine re-mailing program, Loveland, also known as the sweetheart City, was founded in 1877 and named to honor William Loveland, then president of the nearby Colorado Central Railroad.
If you’re a resident of Loveland, then you already know that it’s a great place to live and raise a family. And if you’re visiting this page, then you’re probably a resident of Loveland seeking help with debt relief.
Undoubtedly, you’re eager to put mounting debt behind you and move on with your life. Keep in mind that one of the best first steps you can take towards financial freedom is contacting an experienced Colorado bankruptcy lawyer.
Our Loveland bankruptcy attorneys have handled hundreds of bankruptcy cases in Larimer County and throughout Colorado, and we can quickly begin to help ease your worries about your finances after one quick case consultation.