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Are you having trouble paying your bills?
Is your car or home in danger of being repossessed or foreclosed upon?
Have you considered borrowing money from friends and family to cover your debts?
Does worrying about your bills make you lose sleep or affect your relationships?
If you answered yes to any of these questions, it may be time to consider filing for bankruptcy.
Bankruptcy is not an easy choice to make. Not only is the process of filing for bankruptcy a confusing one, but it also carries a lot of emotional weight for many people. Despite this, a bankruptcy filing may be the best option for you, your family, and your financial future.
Before you file for bankruptcy in Fort Collins, it’s important to understand that you have options. The circumstances surrounding every bankruptcy case are unique, so it’s beneficial to which bankruptcy filing will best fit your specific needs. Understanding the intricacies of Chapter 7 and Chapter 13 bankruptcy allows you to make more informed, empowered decisions regarding your finances.
Chapter 13 bankruptcy is one route you can take, and it may be the best option for you. It is a distinct process with its own advantages and disadvantages, just like Chapter 7 bankruptcy. We have designed this website to provide you with a small glimpse at the Chapter 13 bankruptcy process. If you haven’t considered filing for bankruptcy this way, please read the following information and then contact our experienced Fort Collins Chapter 13 bankruptcy attorneys to see if Chapter 13 is right for you.
From start to finish, a Chapter 13 bankruptcy filing in Larimer County can take between 36-60 months to complete. Compared to the 4 to 6 months that Chapter 7 bankruptcy takes, this may seem like a long time. You may not believe us, but the length of a Chapter 13 case can be a good thing!
In this section, our Fort Collins bankruptcy attorneys outline the entire Chapter 13 bankruptcy process from start to finish. Our team of experienced legal professionals has found that it’s important for clients to know what they’re signing up for during a Chapter 13 bankruptcy case. However, we do caution that this is just a general overview of the process. Each bankruptcy case is unique due to the specific circumstances surrounding the bankruptcy petitioner’s debt structure. For more information on whether or not Chapter 13 is the right bankruptcy option for you, we suggest you contact our Larimer County debt relief attorneys. During your free case consultation, a member of our team will go over all of the relevant details of your case and lay out your best debt relief options.
The first step you’ll take once you’ve decided to file for bankruptcy in Fort Collins happens before you file any bankruptcy paperwork. You’ll need to sign up for and take a credit counseling course. Completing this class is a mandatory part of filing for chapter 13 bankruptcy. After you have taken the credit counseling course, you will be issued a certificate of completion, which must be included in the paperwork you submit to the Federal Bankruptcy Court to file for bankruptcy.
The next step is compiling all of the necessary paperwork for your Chapter 13 bankruptcy petition. Your Fort Collins Chapter 13 bankruptcy attorney may refer to this paperwork as the bankruptcy Schedules throughout your case. The list of necessary forms to complete the bankruptcy Schedules can be found on the United States Bankruptcy Court-District of Colorado website.
Part of the Schedules you will submit for your Chapter 13 bankruptcy plan is your repayment plan. This plan will reorganize and consolidate all outstanding obligations into a single monthly payment. The amount of this payment is tied to your disposable income – your current ability to pay – and not the size of your debt. Certain types of debt, including tax debt, have “priority” and must be addressed before other debts.
Once your repayment plan has been submitted to and approved by the court, you will need to continue to make your monthly payment over a period of three to five years. During the duration of your bankruptcy case, a legal provision called the automatic stay will be active, which stops creditors from trying to collect from you, halts vehicle repossession, and can even stop foreclosure. The automatic stay also prevents creditors from calling your home or garnishing wages from your paycheck. That means that thanks to the automatic stay, so long as you continue to make your monthly payments and honor the terms of the plan, you can potentially receive up to five years of protection from negative collection actions.
Completing your repayment plan will generally allow you to discharge most remaining unsecured debts. This means you will be able to eliminate credit card debt, medical bills, personal loans, and unpaid utility bills. If you can demonstrate undue hardship, you may also be able to discharge any remaining student loan debt.
Though you cannot eliminate all types of debt through Chapter 13 bankruptcy, your plan can be structured to focus on priority debts you cannot discharge. The elimination of unsecured debts can also provide increased financial flexibility and resources to catch up on other obligations.
It’s important to note that, with Chapter 13 bankruptcy, if you have secured loans such as a mortgage or car loan, you will need to continue to pay the current loan payments in addition to your Chapter 13 bankruptcy repayment plan payments. While creditors cannot repossess or foreclose on your car or home during Chapter 13 bankruptcy thanks to the automatic stay, if you don’t keep up with your payments during your repayment period, your creditors can pursue foreclosure or repossession immediately after your Chapter 13 bankruptcy case is over.
The last step before your Chapter 13 bankruptcy is completed is another required educational course. This is in addition to pre-bankruptcy credit counseling, and it’s called a debtor education class. After you file for bankruptcy, but before your debt(s) is discharged, you are required by law to complete pre-discharge debtor education.
Of course, the information in this section is meant merely as insight into the Chapter 13 bankruptcy timeline. The facts and circumstances of your individual case may vary and you should contact an experienced Fort Collins Chapter 13 bankruptcy attorney to receive proper legal advice. For specific personal Colorado Chapter 13 bankruptcy law information contact our Larimer County bankruptcy lawyers to arrange a free case consultation.
Many residents of Larimer County seeking debt relief through bankruptcy only know about Chapter 7 bankruptcy. It’s not terribly surprising to our Fort Collins bankruptcy attorneys, after all, Chapter 7 is the most commonly filed bankruptcy case in Colorado.
However not everyone qualifies for Chapter 7 bankruptcy, and even if they do, it’s not always the right choice for their specific needs. Our 30 combined years of experience have taught us that Chapter 13 bankruptcy may be the right choice for you if –
If you’re considering bankruptcy but are worried you earn too much money to file, Chapter 13 may be the option you’ve been looking for. It’s frustrating to work hard for your money and still find yourself unable to keep up with bills. This situation is what Chapter 13 bankruptcy is all about, and it may be the best way to save your home from foreclosure.
Contact our law office today and speak with a qualified bankruptcy lawyer in Larimer County without cost or obligation. We will help you determine whether filing for bankruptcy will help you finally get back on top of your monthly bills.