Colorado’s 100% Online Bankruptcy Law Firm
No offices appointments. No Court Appearances.
Schedule a Consultation
Schedule a Consultation
The vast majority of Americans carry a certain amount of debt. Whether it be a loan on a vehicle, a mortgage on a home, or a couple of thousand dollars in credit card debt, it’s the primary way that hard-working people are able to maintain their preferred lifestyle. In fact, debt is a key part of our entire culture.
But what happens when someone experiences misfortune and they suddenly find themselves unable to pay bills?
One common example is the result of medical bill debt. Most people recognize that the state of the nation’s healthcare system leaves much room for improvement. But what many people don’t know is that one hospital stay or emergency room visit can lead to a mountain of medical bill debt. In fact, it is estimated that more than 65% of bankruptcy cases are the result of medical bill debt.
Obviously, this is just one example of why someone might fall behind on their bills, but there are many more. Job layoffs, divorce, and even our recent global pandemic could cause somebody to fall behind on their bills. Because of high-interest rates and the inherent nature of loans, once a person falls behind they can quickly get caught up in the downward spiral of unmanageable debt.
Missing one car payment is not a big problem. Miss three or four payments and suddenly the lender will do everything in their power to repossess the vehicle. Fall behind on credit card debt, and creditors will start harassing you day and night. Predatory lenders may even threaten you with arrest or call your family members in an attempt to scare you into giving them money – money you don’t have.
Consider the following questions:
If you answered yes to any of these questions, it may be time to consider filing for bankruptcy.
Just mentioning the word bankruptcy makes many people cringe because of the stigma associated with the word. Some consumers mistakenly believe that filing for bankruptcy is a mark of failure or a reason to feel embarrassed. Nothing could be further from the truth.
The United States Government developed bankruptcy law to help people struggling with unmanageable debt once again become contributing participants in our nation’s economy. In fact, bankruptcy helps both the rich and poor get a fresh financial start every single day.
If you’re curious about bankruptcy and wondering whether it may be the answer you’ve been looking for, contact one of our Fort Collins bankruptcy lawyers for a free consultation. You’ll be able to ask questions and share information about your financial situation, and we’ll provide you with reliable answers based on the law.
With more than 50 years of collective experience, our Fort Collins debt relief lawyers have the skills and tool set necessary to help you take the next step.
If the bank is threatening to foreclose on your home or you’re at risk of having your car repossessed, time is of the essence. Your CO bankruptcy lawyer has a much better chance of helping you if you provide them with adequate time.
There are multiple varieties of bankruptcy but the vast majority of Colorado residents file for either Chapter 7 or Chapter 13 bankruptcy. The following information was prepared as an overview so that you can better understand the process.
Chapter 7 bankruptcy is the most popular form of bankruptcy in the state of Colorado, and it’s sometimes referred to as a straight bankruptcy or liquidation bankruptcy. The main reason why Chapter 7 bankruptcy is so popular is that it allows filers to discharge their debt and start over again financially. It’s also the fastest and least expensive form of bankruptcy.
Chapter 7 bankruptcy allows you to get rid of most or all of your unsecured debt including credit card debt, payday loan debt, medical bill debt, and even past due utility bills.
When you file for Chapter 7 bankruptcy in the state of Colorado, the entire process is usually completed in only 3 to 5 months. People filing for Chapter 7 bankruptcy are required to pass a means test that determines whether their income falls within the parameters that allow them to file. In its most basic terms, if you make too much money, it’s not possible to file for Chapter 7 bankruptcy.
Chapter 13 bankruptcy is a bit more complex than Chapter 7, but it allows people with a steady monthly income to also get a fresh financial start. This is important because even though somebody may have a monthly income does not necessarily mean they’re able to keep up with their debt, especially unmanageable medical bill debt. This is why Chapter 13 bankruptcy is sometimes called a wage earner bankruptcy.
When you file for Chapter 13 bankruptcy the court considers your income and expenses and compares them with your debt. Next, an affordable monthly payment plan is arranged, the term of which lasts for 3 to 5 years. The goal of Chapter 13 bankruptcy is to ensure that you can maintain payments for the duration of the term.
Chapter 13 bankruptcy may also be the best way to stop foreclosure on your home and prevent a vehicle from being repossessed.
Both Chapter 7 and Chapter 13 bankruptcy have advantages and disadvantages depending on your financial situation. For this reason, it makes sense to talk to a highly experienced Larimer County bankruptcy lawyer about your financial situation before deciding which form of bankruptcy is right for you.
We offer a free consultation to all potential clients, which affords you the opportunity to get facts about bankruptcy and make an informed decision concerning your finances.
United States bankruptcy law utilizes many words and phrases that are unique and not often heard in other contexts. Unless you file for bankruptcy or have some experience with the law, it’s likely you have never heard many of these phrases.
If you’re traveling to a foreign country, it makes sense to learn the language. If you’re considering filing for bankruptcy, it makes sense to learn words and phrases that are likely going to come up as you proceed.
Hopefully, the following glossary of terms will be helpful as you begin your journey toward financial freedom.
Asset – anything you own that has value is considered an asset when filing for bankruptcy. It may be a piece of property you own or something you partially own. When you file for bankruptcy, you are required to disclose all of your assets which is something your Fort Collins bankruptcy attorney can help you do.
Automatic stay – when you file for bankruptcy in Colorado, the automatic stay goes into effect and remains in effect throughout the duration of the process. What it means is that creditors can no longer contact you in any way. Additionally, your wages cannot be garnished, your car cannot be repossessed, and your home is safe from foreclosure. The goal of the automatic stay is to ensure debtors have time to get their financial affairs in order.
Bankruptcy code – federal law governs bankruptcy in the United States of America. The statutes and laws that govern bankruptcy are referred to as the bankruptcy code. The state of Colorado also has various statutes and laws that apply to bankruptcy, such as the list of exemptions.
Bankruptcy Court – when you file for bankruptcy in the state of Colorado, your case is handled in the United States Bankruptcy Court, located in Denver.
Discharge – when the court says you are no longer required to pay back a certain debt, the debt is considered to be discharged.
Exemptions – when you file for bankruptcy, there may be assets you want to protect from liquidation, such as a car or a wedding ring. The state of Colorado has a generous list of exemptions, allowing you to choose assets that you want to keep. In other words, these assets are exempt from liquidation.
Colorado’s list of exemptions includes:
Means test – means test is merely a formula that compares your income and expenses to Federal regulations. Persons hoping to file for Chapter 7 bankruptcy are required to pass the means test, but if they make too much money Chapter 13 may be the better option
Predatory lenders – lenders who use unscrupulous tactics to prey upon people experiencing unmanageable debt are referred to as predatory lenders. Common predatory lenders include payday loan businesses, short-term loan businesses, and even some private student loan companies.
Schedule – in the world of bankruptcy, a schedule is a form, much like when you do your taxes. Your Fort Collins debt relief lawyer will help you fill out all of your schedules and make sure that they are filed in the proper manner and on time.
Secured debt – if you obtain a loan and something is used as collateral, it is referred to as a secured debt. Home mortgages and automobile loans are two prime examples of secured debt because the home or vehicle is used as collateral for the loan. If you can’t pay back the loan, the bank can foreclose on your home or repossess your car.
Trustee – trustees are appointed by the court to help administer the case and ensure that the person filing for bankruptcy hasn’t done something that would prevent them from filing.
Unsecured debt – any form of debt without collateral is called unsecured debt. Medical bill debt and credit card debt are likely the two most common examples of unsecured debt.
While this glossary of terms will undoubtedly help you better understand some bankruptcy basics, every person’s financial situation is unique and requires specialized attention. If you have questions, contact one of our Colorado bankruptcy attorneys so that they can provide you with reliable answers.
Most people have never filed for bankruptcy which means they have little understanding of the law. Attempting to file on their own may lead to mistakes that they later regret.
While we believe it’s always a good idea to work with an attorney when filing bankruptcy, some people attempt to handle things on their own. What follows are the five most common mistakes people make when filing for bankruptcy in the state of Colorado.
1. Using up the credit limit on credit cards in the days and weeks leading up to bankruptcy.
Sometimes, when people make the decision to declare bankruptcy, they may wait for a period of time in an effort to max out their credit cards. The thought behind this course of action is that their unsecured debt will ultimately be forgiven, so why not go hog wild?
Obviously, maxing out credit cards before filing for bankruptcy is dishonest, but it’s also fraud. Court-appointed trustees are familiar with these tactics and are experts at spotting red flags. Rather than get a bunch of free merchandise, people who max out their credit cards before bankruptcy usually regret their actions when they’re forced to pay their creditors back in full or face other punitive measures.
2. Repaying debts to family members.
When a family member is kind enough to loan money, any honorable person will do whatever they can to pay them back. However, if you’re filing for bankruptcy, you should not repay any debt to a family member. The reason why is that you are not allowed to treat a family member better than any other lender and the court may consider it a preferential payment.
3. Using retirement account monies to pay past due bills.
When people fall behind on bills they sometimes panic and do whatever they can to try and get caught up. Unfortunately, sometimes people remove money from their retirement accounts. It’s important to understand that retirement accounts are protected from creditors when filing for bankruptcy. For this reason, money invested into a retirement account should be left in place. If you have any questions or doubts, have an in-depth conversation with your Fort Collins bankruptcy attorney before withdrawing any money from your retirement account. If you’ve already withdrawn money from a retirement account, you should talk to an attorney without delay.
4. Giving away or transferring property or assets.
One of the worst things you can do before filing for bankruptcy is to give away your assets or property. The state of Colorado allows you to make use of exemptions to protect much of your property if not all of it. Giving away property is a bad strategy that almost always backfires.
5. Waiting too long before talking to a qualified Fort Collins debt relief attorney
Nobody likes falling behind on bills, so it’s common for hard-working people to do everything they can to get caught up on bills even when there’s no chance it will ever happen. Sometimes people feel embarrassed about filing for bankruptcy, as though it’s an admission of failure.
Both are reasons why many people wait far too long to contact a qualified bankruptcy lawyer in Colorado. Don’t make the same mistake. Contact one of our professional bankruptcy lawyers and take advantage of our cost-free consultation offer.
The bankruptcy code was developed to help hardworking people get a fresh financial start. Taking advantage of these laws is nothing to be embarrassed about. In fact, it takes strength and fortitude to take control of a bad situation and make it better. We can help.
With a population of nearly 170,000, Fort Collins isn’t too big and it isn’t too small. However, the city has grown by 18% in only a few years, so hopefully, the traffic won’t get too bad because it’s a beautiful city with plenty of fun things to do.
Fort Collins has a thriving economy and plenty of jobs, which is likely why so many families are flocking to the region. It’s also situated just beneath the beautiful Rocky Mountains and only 60 miles from Denver, which means easy access to Colorado’s urban center and the great outdoors.
Much of Fort Collins’s culture is centered around the students and faculty at Colorado State University. What that means is a great music scene and plenty of microbreweries, because college kids love beer.
The Colorado Marathon is a popular annual event for people who enjoy a good run before grabbing a beer at a microbrewery. Many other residents enjoy hiking and skiing in the mountains, and shopping and dining around town.
Enjoying all that life has to offer comes with a price and if the price is too large, it often leads to debt. If you’re struggling with debt, it may be time to seek a solution that’s impossible to find in a microbrewery.
If you’re tired of being harassed by creditors or living with the constant threat of having your vehicle repossessed, now is the time to take action Contact our law office today and have a conversation with one of our Fort Collins bankruptcy lawyers. They will help you determine whether you qualify for bankruptcy and if so, will guide you through the process from start to finish.