Colorado’s 100% Online Bankruptcy Law Firm
No offices appointments. No Court Appearances.
Schedule a Consultation
Schedule a Consultation
If you’re overwhelmed by debt and can’t find a way out, it’s time to talk with an experienced Colorado Springs bankruptcy attorney. You don’t have to fight this battle alone. The solution to your financial problems is only a phone call or email away.
If you are struggling to meet your mortgage payments, or pay your car loan or credit card bills, we can help you get control of your financial situation. Our clients are El Paso county residents who have fallen on hard times because of family illness, job loss, reduced work hours, or divorce.
Declaring Chapter 7 bankruptcy can be an effective way to resolve your unmanageable debt. Anyone considering this option should be aware of all aspects of Chapter 7 bankruptcy. That’s why our Colorado Springs Chapter 7 bankruptcy attorneys have designed this website, to give residents with mounting debt some general information about bankruptcy and how an El Paso County debt relief attorney can help.
Chapter 7 bankruptcy is a comprehensive means of discharging various debts, but not everyone hoping to file Chapter 7 in Colorado Springs is eligible for it.
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which reformed the process for filing for bankruptcy. Before that, practically anyone who wanted to could file for Chapter 7 bankruptcy, leading many unethical people to fraudulently file for bankruptcy to avoid paying a debt.
These days, thanks to BAPCPA, anyone who wants to declare bankruptcy under Chapter 7 must first complete and pass the Colorado means test, which determines whether a debtor’s monthly disposable income is too high to justify such an extreme debt relief measure.
The means test factors include:
The above summary doesn’t go into the full details or calculations regarding the means test, which can be very complicated.
If you’re unsure whether or not you qualify for Chapter 7 bankruptcy, our Colorado Springs Chapter 7 bankruptcy lawyer can go over your financial information and work with you to determine your eligibility during your free case consultation.
The final step if you’ve filed Chapter 13 bankruptcy in Colorado is-
Filing bankruptcy is a legal process that helps you eliminate many of your debts, if not all, and start over. Bankruptcy allows individuals that are unable to repay their debts a means to seek relief from any or all of those obligations.
Chapter 7, the most common personal bankruptcy filing in Colorado, is often called “liquidation” bankruptcy, or “simple,” “straight” or “total” bankruptcy. Once you and your Colorado Springs bankruptcy attorney have gathered all of the necessary documents and filed the schedules with the court, most Chapter 7 bankruptcy filings move rather quickly. The average time a Chapter 7 case may take is approximately 4 to 6 months from start to finish.
As in all bankruptcy cases, filing a Chapter 7 bankruptcy case triggers immediate court protection known as the “automatic stay.” The automatic stay is a legal process that halts most debt collection actions, such as lawsuits, judgments, garnishments, and harassment against the debtor.
The Federal Bankruptcy Court-District of Colorado then sends notices of the bankruptcy filing to all listed creditors. The case is assigned a federal judge and a bankruptcy trustee. The trustee’s primary job is to look for assets that are not exempt and sell them to pay the creditors.
In Chapter 7, The law allows you to keep some of your property such as a home, vehicle, household goods, or clothing. These assets are referred to as bankruptcy exemptions. Every state has different bankruptcy exemptions, and Colorado’s are particularly generous. Some examples include
The next step is for the debtor and their El Paso County Bankruptcy attorney to attend the meeting of the creditors, also known as a 341(a) meeting. Creditors have the right to attend the meeting and ask the debtor questions, although creditors rarely show up. Typically, the debtor just meets with the trustee, who asks a few questions about the debtor’s debts, assets, income, expenses, and financial affairs.
After the meeting, the trustee will either issue a no-asset report, meaning the trustee is finished with the case, or they make a finding of assets, in which case the trustee will pursue such assets for the benefit of the creditors.
The trustee and/or the creditors have two months after the 341(a) meeting to challenge a Chapter 7 bankruptcy case if they feel they have the right to do so. In most cases, this doesn’t happen, especially if the debtor has hired an experienced Colorado Springs debt relief attorney to help with their case. Once the deadline passes, the debtor is entitled to a discharge and will receive it soon from the court by mail
Chapter 7 bankruptcy is ideal for people who owe a large amount of unsecured debt such as credit cards, medical bills, payday loans, and back utility bills without a lot of assets. If you feel you may benefit from filing Chapter 7 bankruptcy in Colorado, please reach out to our El Paso County bankruptcy attorneys today for a case consultation.
Filing for bankruptcy may be one of the most daunting and complicated times in your life. Working with an experienced El Paso County debt relief lawyer can give you peace of mind throughout the process, and having one on your side can also give you a much higher chance of a successful suit.
You have options. You have rights. You have the choice to take back control of your financial future. Our team of knowledgeable and hard-working legal professionals works fervently on the driving principle of helping people find their way out of suffocating debt. One of our Colorado Springs Chapter 7 bankruptcy attorneys will walk you through every step of your Chapter 7 bankruptcy case. During your free case consultation we will help you:
Chapter 7 bankruptcy is often a solution to uncontrolled debt but it should be noted that it’s not possible to discharge student loan debt, even though at first glance it may seem like unsecured debt. Still, if you’re having trouble paying bills because of student loan debt, there are other options you can explore when you talk to one of our CO bankruptcy lawyers.
You’ve taken the first step by seeking information about Chapter 7 bankruptcy. Contact us for a free consultation to start the next step.