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When your bills are more than your income, the debt you accrue becomes overwhelming fast. Luckily, you are not alone. Colorado Chapter 7 bankruptcy lawyers can help you to understand your options and begin the process of getting your finances back on track. Chapter 7 bankruptcy is not for those who have simple debt that can be overcome with a solid, long-term financial plan. Chapter 7 is for those who are beyond the ability to pay off their debts and must take serious measures to get on top of them.
Chapter 7 bankruptcy is the most common form of bankruptcy, and it can be used by both Colorado businesses and individuals alike. Bankruptcy in general is a legal system governed by the U.S. Legal Code Title 11, and its purpose is to help people to take care of debt when it can no longer be paid. Chapter 7 helps individuals to liquidate their assets and pay their debts with the help of their appointed bankruptcy trustee.
Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy” because debtors have to liquidate their assets to repay debts. There are two types of Chapter 7 bankruptcy:
In either case, when the process is complete, most of the debts are discharged. There are some debts including unpaid taxes, tax liens, child or spousal support, and student loans that will not be discharged.
To understand what assets will be kept and what will be liquidated, the best course of action is to speak with Adams County Chapter 7 bankruptcy lawyers. These bankruptcy professionals will be able to provide you with personal guidance on your unique financial holdings. In Colorado, there are bankruptcy exemptions that ensure you can still recover financially following a bankruptcy filing. These assets include:
It’s important to note that all health and medical aids are completely exempt from bankruptcy asset liquidation.
Not everyone qualifies to file for Chapter 7 bankruptcy. The best option to determine if you qualify is to consult with Adams County bankruptcy attorneys focusing on Chapter 7 and Chapter 13 cases. Attorneys will help you to understand all of your legal options and advise you on how to proceed.
In the state of Colorado, anyone looking to declare bankruptcy will first have to pass the Colorado Means Test. This test determines whether or not the debtor’s income is too high to qualify for Chapter 7. The Colorado Means Test doesn’t only look at your income against the state median, it also looks at your percentage of disposable income against your costs of living. Beyond the means test, you will not qualify if you:
Chapter 7 bankruptcy in Colorado discharges your unsecured debts. Unsecured debts include things like credit card debt, medical bills, and unsecured personal loans. In some cases, the Colorado court may also object to the discharging of certain debts such as luxury purchases or cash advances. Colorado courts may decide to discharge what you owe on secured debts as well depending on the circumstances. Thornton Chapter 7 bankruptcy attorneys can help you to better understand these nuances.
Filing for Chapter 7 bankruptcy in Colorado is rife with complexities. You will work alongside your Chapter 7 bankruptcy lawyers in Thornton through the process to ensure that it is done correctly and as quickly as possible. In general, it takes about 4 to 6 months to file and complete Chapter 7 bankruptcy in Colorado when you work with an attorney as your bankruptcy trustee.
Chapter 7 is a serious form of bankruptcy that leads to the discharge of your debts. As creditors look mostly at your past credit history before determining your risk profile, Chapter 7 will leave a lasting mark on your credit report. By law, your Chapter 7 bankruptcy will stay on your credit history for 10 years.
The first step to filing Chapter 7 bankruptcy in Colorado is to speak with Chapter 7 bankruptcy lawyers serving the entire Thornton Metro area. They will determine if you qualify for Chapter 7 or if you would be better off filing Chapter 13. They will then walk you through the process so that you understand what the process will look like and how bankruptcy will impact your assets, property, and personal wealth. They will answer questions and help you to take the steps you need to start to get yourself back on track. Finally, they’ll help you to develop a plan for your financial future and to recover from your bankruptcy once and for all.
The Chapter 7 bankruptcy process in Colorado is as follows:
1. With your help, your Thornton bankruptcy attorney will gather all necessary filing documents
2. Your attorney will then file the schedules with the bankruptcy courts, thus triggering an “automatic stay”, or the legal process that halts all debt collection.
3. Next, The Federal Bankruptcy Court-District of Colorado will send notice of the bankruptcy to all listed creditors and they will assign a federal judge as well as a bankruptcy trustee to your case.
4. You, your Adams or Thornton Chapter 7 bankruptcy attorneys, and the attorneys of the listed creditors will have a meeting legally referred to as a 341(a) Meeting.
5. You and your Colorado Chapter 7 attorney will then answer questions about your debts, assets, incomes, and other important financial information.
6. After the 314(a) meeting, the trustee will determine if it is an asset or no-asset case.
7. The creditors will have an opportunity to challenge the Chapter 7 bankruptcy case or allow the debts to be processed for discharge.
While not the best course for everyone facing a financial crisis, Chapter 7 bankruptcy is an option for people who owe a large amount of unsecured debt. Before taking steps to file any bankruptcy, speak with a Thornton-area Chapter 7 bankruptcy attorney who will review your case and determine if this is the right step for you.