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People get in financial trouble for a vast array of reasons 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. Many Coloradans find themselves facing impossible debt with no hope of escape.
If that sounds like you, bankruptcy may be the answer you’re looking for.
If you’re just starting to research Chapter 7 bankruptcy and whether or not it’s right for you, you might be looking for some general bankruptcy knowledge. This webpage is exactly what you’ve been looking for. On this page, we tell you everything you need to know about filing for Chapter 7 bankruptcy in Denver County and the surrounding areas.
If you have debt, you may be wondering if it’s enough to qualify for Chapter 7 bankruptcy in Denver County or the surrounding area. While the amount of debt you have is one aspect taken into consideration, your household income, monthly expenses, and other financial obligations are factors too. That’s why the Federal Bankruptcy Code has what’s called a means test to determine your eligibility to file Chapter 7 bankruptcy.
While Chapter 7 bankruptcy is the most common form of bankruptcy filing for people living in Denver, you must still meet the rigid qualifications established by the US Bankruptcy Code to qualify. The basic eligibility rules involve your recent history of bankruptcy. For example, you’re ineligible to file bankruptcy if you completed Chapter 7 or Chapter 13 bankruptcy proceedings in the last eight or six years, respectively. Additionally, you don’t qualify if you filed for Chapter 7 or Chapter 13 within 180 days prior, and the case was dismissed for certain types of misconduct.
If it’s your first time filing for bankruptcy, the above disqualifications don’t apply to you.
Unfortunately, that is just the first, easiest step in qualifying for Chapter 7 bankruptcy. The qualifications for Chapter 7 become much more complex after that. The analysis turns to the “means” test, which is an assessment of your financial condition. 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, you should contact a Denver Chapter 7 bankruptcy lawyer, who can go over your financial information and work with you to determine your eligibility.
Chapter 7 of the Federal Bankruptcy Code involves the liquidation, or sale, of nonexempt assets that can be used to pay creditors a portion of the debt they are owed. Also known as “straight bankruptcy,” Chapter 7 cases nearly always result in the discharge of most unsecured debts. This means that a bankruptcy court will release consumers from the legal obligation of paying debts such as credit card bills and medical bills.
Filing for Chapter 7 isn’t as simple as handing a list of creditors to a judge and asking them to please erase all of your debts. There are strict steps that must be followed when filing Chapter 7 bankruptcy in Denver if you wish to have your debts discharged.
Chapter 7 bankruptcy cases generally last between 4-6 months from the moment the petition is filed. For the duration of your case, an automatic stay is enacted, which halts all creditors from attempting to collect on any debt you may owe. Of course, the above list is a very general guideline of the steps needed to successfully file for Chapter 7 bankruptcy in Denver and the State of Colorado.
An experienced Denver bankruptcy attorney can give you more information during your free case consultation. Additionally, a more detailed outline of Chapter 7 bankruptcy and how to qualify can be found on Debt.org’s website.
If you are one of many thousands of people struggling with debt problems in Colorado, your life is full of uncertainty and pressure. Every working day, our Denver bankruptcy lawyers help people facing urgent concerns such as home foreclosure, creditor harassment, and wage garnishment. Many clients who come to us feel crippled by debts that impact nearly every aspect of their lives.
If you’ve been kept up at night worrying about mounting debt, Chapter 7 bankruptcy can be a healthy and advantageous legal action you can use to gain a financial fresh start. Bankruptcy is not about giving up or walking away from responsibilities. It is about making a positive change. While it will not solve all of your financial problems, the benefits of bankruptcy may be precisely what you need.
If you want to talk with an experienced legal professional who will compassionately help you and your family work toward an affordable, life-changing solution, please contact us today. Take advantage of our no-cost initial case consultation that we offer to all prospective clients.