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Every day in Colorado, someone falls behind on bills. It may be because they lost their job or suffered from an illness that incurred a large amount of medical bill debt. Whatever the reason, it’s a common refrain all over the United States.
To underscore this fact, take into consideration that the vast majority of people who file for bankruptcy did everything they could to pay their bills. However, high-interest rates combined with a little bit of bad luck often cause hard-working people to reach a tipping point where there is no hope of getting out of debt.
Soon the threatening phone calls from creditors, banks, and collection agencies start. A lender threatens to repossess a vehicle or the bank threatens foreclosure on their home. At this point, well-meaning people may attempt to get ahead by seeking loans from predatory lenders or even pulling money out of their retirement accounts.
If any of this sounds familiar, then you are likely feeling the stress and anxiety caused by uncontrollable debt. The feeling is one of hopelessness, but the United States government crafted a mechanism for eliminating debt and getting a fresh financial start.
Our Aurora bankruptcy lawyers have helped thousands of individuals and families escape the never-ending cycle of debt once and for all. We offer a free consultation so that you can find out whether bankruptcy is a wise choice for you and your family.
Sadly, many people avoid filing for bankruptcy because of the stigma associated with debt. It doesn’t help that bill collectors do everything they can to embarrass you into paying the money that you don’t have. Still, there are countless people who believe that filing for bankruptcy is somehow an admission of failure.
Did you know that 66% of bankruptcies are caused because of medical debt? The vast majority of people suffering from medical debt who file for bankruptcy have health insurance. While this statistic is a grim commentary on the United States medical health system, it underscores that bankruptcy has nothing to do with failure or being irresponsible.
If you are an Aurora resident suffering from uncontrollable debt, take some time to review this webpage and learn some of the basics about filing for bankruptcy. When you’re done, contact one of our Aurora bankruptcy lawyers and take advantage of our free consultation offer.
Bankruptcy makes it possible for anyone, rich or poor, to get a fresh financial start. If you’re tired of harassing phone calls or worried about losing your home or vehicle, don’t waste another minute. One of our Colorado bankruptcy lawyers is ready to help you today.
Most people have little knowledge of Colorado law or federal law. This is especially true with bankruptcy because there are so many misconceptions about the process.
If you’re thinking about filing for bankruptcy, it’s essential that you fully understand the law and the implications of filing. Plus, you likely have multiple options to consider such as Chapter 7 and Chapter 13. Each has its advantages and disadvantages depending on your financial situation.
The following information is presented to ensure you avoid many of the common pitfalls people encounter when filing for bankruptcy. And remember, one of our Aurora bankruptcy attorneys is always a phone call away
One of the advantages of filing for bankruptcy is that unsecured debt, which includes credit cards, is often wiped out entirely. In the days and weeks leading up to the bankruptcy, you may think it’s a good idea to max out any remaining limits on your credit cards, under the assumption that the debt will be eliminated and you will be able to keep the merchandise you purchase.
This is unequivocally the worst thing you could do. Maxing out your credit cards on retail merchandise before filing for bankruptcy is considered fraud. Rather than being able to keep the merchandise and eliminate the debt, it’s more likely the court will require you to pay back the creditor in full. It’s also possible that you could be punished by the court in some other way.
It’s natural to feel an overwhelming responsibility toward family members that loan you money. Indeed, paying them back is the moral thing to do. However, you should not pay back loans from family members before filing for bankruptcy because they should be treated as any other creditor. If you make loan payments to a family member within one year of filing for bankruptcy, the court could decide that they are preferential payments and you may have to pay back the money.
Sadly, many unscrupulous predatory lenders will try to coerce debtors into withdrawing money from retirement accounts to pay back loans. What they won’t tell you is that most retirement accounts are protected from creditors, especially when filing for bankruptcy. Obviously, it’s in their best interest to prevent you from knowing the law, which underscore why it’s so important to speak with a qualified Arapahoe County bankruptcy attorney. If you’ve already withdrawn money from a retirement account to pay back a lender, we urge you to contact our law office immediately.
If you’re thinking about filing for bankruptcy, we urge you not to give away or liquidate any assets. You may think that you will lose some or all of your property and assets when filing for bankruptcy, but the state of Colorado has a generous list of exemptions that protects your property when filing for bankruptcy. Again, talk to your attorney and exercise patience
There is a lot of misinformation about bankruptcy, especially on the internet. Many people still mistakenly believe that filing for bankruptcy is a cause for embarrassment, but nothing could be further from the truth. Information is power, and when you arm yourself with information, you’re likely to make better decisions.
One of the best decisions you can make right now is to call our law office and explain your financial situation to one of our experienced Aurora bankruptcy attorneys without cost or obligation. The more time your attorney has to handle your specific and unique situation, the more they can help you.
Bankruptcy law was designed to help families and individuals once again become participants in our national economy. We are here to help you navigate the complex waters of federal and Colorado State bankruptcy law.
As with other legal arenas, bankruptcy law uses its own words and phrases to describe various processes. When you first begin diving into legal statutes regarding bankruptcy, you’re likely to be confused by some of the vernacular.
The following glossary of common words and phrases related to bankruptcy will help you build a firm foundation for understanding the process in full.
Adversary proceeding -an adversary proceeding can be requested by a creditor, debtor, or trustee. Oftentimes, it’s a way for debtors to have their voices heard in court in an effort to have certain debts discharged. However, a creditor may request an adversary proceeding when they believe the person filing for bankruptcy should pay what is owed.
This is one of the reasons you should never try to max out credit cards before filing for bankruptcy. Creditors are well-versed in the techniques filers use to cheat the system, and they will almost certainly file an adversary proceeding.
Automatic stay – in the state of Colorado, the automatic stay goes into effect the minute you file for bankruptcy. This is one of the most essential aspects of bankruptcy because it prevents creditors from contacting you and stops all wage garnishment, repossessions, and home foreclosures. The intent behind the automatic stay is to give the debtor time to get their financial affairs in order and come up with a long-term solution to their financial troubles.
Bankruptcy code – these are the statutes that govern bankruptcy and are a part of federal law. The bankruptcy code is managed by the United States Congress and used by the court system. When you file for bankruptcy, you are subject to the rules and regulations of the bankruptcy code.
Bankruptcy Court – the United States Bankruptcy Court handles bankruptcy cases. Colorado residents have their cases handled by the United States Bankruptcy Court, District of Colorado
Discharge– when debt is discharged, it means that it is eliminated.
Exemptions – when filing for bankruptcy, you may want to protect certain assets. Exempt assets cannot be targeted by creditors seeking compensation for debt.
The state of Colorado has a generous list of exemptions because the idea is to help get the filer back on firm financial footing.
The following is a list of exemptions in the state of Colorado.
Means test – a means test is used to compare your income and expenses to federally mandated averages outlined in bankruptcy code. Persons filing for Chapter 7 bankruptcy are required to pass a means test and if their income is too high, Chapter 13 is likely the most viable option.
Predatory loans and lenders – as the name suggests, predatory loans are often given to people who are in a desperate financial situation. Absurdly high-interest rates and unreasonable terms often make their financial situation even worse. Some of the lending entities that qualify as predatory include payday loan businesses, businesses that offer short-term cash loans that sound too good to be true, and even some private student loan companies.
Schedules -when you file legal paperwork related to bankruptcy, they are often referred to as schedules. Information about your assets and debts is a primary example.
Secure debt – loans that are backed up with collateral are called secured debts. Primary examples include automobiles and homes, which often require collateral because of their value.
Trustee – this is a person appointed to administer and oversee your bankruptcy case. The trustee takes on a variety of roles, and these roles vary depending on whether you file chapter 7 or Chapter 13. They meticulously review your bankruptcy case in an effort to ascertain whether any fraud was committed or other red flags.
Unsecured debt – debts without collateral are called unsecured debt, with credit card debt and medical bill debt being two primary examples. These debts are often entirely wiped out when a person files for bankruptcy. It should be noted that federal student loans are not considered unsecured debt.
The above glossary of terms provides you with a basic overview but there is no substitute for getting specific information about your financial situation from an experienced Aurora bankruptcy lawyer. Contact us today for a free case evaluation.
If you’re considering bankruptcy as a solution to your financial woes, it’s important to ascertain whether Chapter 7 or Chapter 13 is right for you. While there are a few other options, most people living in Aurora file for either Chapter 7 or Chapter 13.
Chapter 7 bankruptcy is often referred to as liquidation bankruptcy or straight bankruptcy. Chapter 7 bankruptcy allows filers to wipe out a large amount of debt and start over again financially, but they must also pass a means test.
Chapter 7 is a popular option because it allows filers to discharge most or all of their unsecured debt, including medical bill debt, credit card debt, tax penalties, payday loan debt, and even pastor utility bills.
Unsecured debt is often fully discharged because it is debt without collateral. Another benefit to filing Chapter 7 bankruptcy is the speed at which the case is resolved. Oftentimes, the entire process is finalized within 3 to 5 months.
Chapter 13 bankruptcy allows filers to pay off their debt usually over a period of time between 3 to 5 years. Many people call Chapter 13 bankruptcy a wage earner bankruptcy because the individual filing usually has a reliable steady income.
In its most basic terms, a Chapter 13 bankruptcy allows the filer to consolidate debt so that they can keep up with payments over a three to five-year term, when the term has ended, the rest of the debt is discharged.
For persons seeking to retain ownership of property, especially a home, Chapter 13 offers a way to restore financial security without losing a house to foreclosure or having other assets liquidated.
While Chapter 13 bankruptcy takes longer than Chapter 7, each has its own advantages and disadvantages. The only way to ascertain which option is best for you is to talk to one of our Aurora bankruptcy attorneys about your financial situation and outline your goals.
While Denver is a metropolitan city with a robust urban core, Aurora is a sprawling suburban paradise nestled beneath the Rocky Mountains to the west. Because Aurora has so much undeveloped land, someday it will likely surpass Denver in population but for now, it’s the third-largest city in Colorado.
Aurora is so sprawling, that its city limits are encompassed by three separate Colorado Counties – Arapahoe, Adams, and Douglas. The vast majority of Aurora residents live in Arapahoe County.
Aurora residents love sports and the city was recognized by Sports Illustrated as a “Sportstown” in their 50th Anniversary issue. There is little wonder why Aurora residents love sports because they are surrounded by countless outdoor recreation opportunities and are close to the professional sports teams that call the Mile High City home.
The nearby Rocky Mountains provide Aurora residents with amazing hiking, fishing, camping, and skiing. The city of Aurora also boasts a large number of parks where families can enjoy a picnic or a game of Frisbee. There are also countless quality restaurants and shops where residents participate in the local economy.
However, when financial difficulties arise, families may suddenly find themselves unable to participate in the local economy. If this sounds familiar, contact one of our Aurora debt relief lawyers today.
If you’re dealing with debt and looking for a way out, contact our law office today and speak with one of our qualified Aurora debt relief attorneys without cost or obligation. No more harassing phone calls from creditors. No more threat of repossession. No more worrying about how you’re ever going to get out from under the crushing weight of crippling debt.