Centennial

Bankruptcy is a legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment. Federally regulated, all Colorado bankruptcy cases are handled by the United States Bankruptcy Court-District of Colorado, which is located in downtown Denver.

Although there are many different chapters of bankruptcy, Chapter 7 and Chapter 13 are tailored toward individuals filing bankruptcy. Chapter 7 bankruptcy is known as the ‘Liquidation Bankruptcy,’ and it’s not only the most popular form of bankruptcy, but it’s also the fastest and easiest way to erase debt.

Chapter 7 is called Liquidation Bankruptcy because non-exempt assets can be liquidated (sold) and the proceeds offered to creditors to settle your debt. After this liquidation has occurred you typically receive a discharge of your unsecured debts within a matter of months.

Chapter 13 bankruptcy, also called “wage earners bankruptcy” is a section of the Bankruptcy Code that helps qualified individuals who desire to repay their creditors but are in financial difficulty. Essentially it allows debtors to “pay what you can afford” for a specific period of time (36-60 months), after which they are discharged from the remaining balance of certain debts.

An experienced CO bankruptcy attorney can help you figure out if you qualify for Chapter 7 or Chapter 13 bankruptcy, and how to move forward with the filing process.

Although bankruptcy is processed on a federal level, the government allows each state to draft a list of bankruptcy exemptions. Colorado has what’s called the Homestead Exemption that allows you to protect up to $75,000 of the equity in your home or mobile home. This amount increases to $105,000 for homeowners who are 60 or older, who have a disability, or who have a dependent or spouse with a disability. If you’re unsure whether or not your home will qualify as an exemption, contact a Centennial bankruptcy attorney for help. Our job is to help you discharge as much debt as possible while helping you keep your assets safe.

• Up to $7,500 for a motor vehicle exemption. (This increases to $12,500 if the filer is elderly or disabled, $15,000 if the filer is married, and up to $30,000 if the filer uses the vehicle for work)
• Up to $50,000 for livestock and tools
• Up to $3,000 in household goods including furniture
• Up to $2,500 in jewelry
• All health aids and medical equipment are 100% exemptions

The primary difference between unsecure and secure debt is the presence or absence of collateral. Unsecured debt has no collateral backing and can include

• Medical Bills
• Credit Card Bills
• Utility Bills
• Payday Loans

Secured debt uses some form of property as collateral for the loan. Some examples of secure debt are

• Home mortgages
• Auto loans

Usually, a secured debt is secured by the asset purchased by the proceeds of the loan. For example, a car loan is secured by the car. However, sometimes the proceeds of the loan may be used for some other purpose. For instance, you could use money from a home equity loan (also known as a second mortgage) to pay off an unsecured credit card or medical bill.

All unsecured debt, including medical bills and credit card obligations, are almost always entirely wiped out when you file for Chapter 7 bankruptcy.

If you file for Chapter 13 bankruptcy, all debt collection from overbearing creditors is stopped, and you are given a time frame (usually between 3 to 5 years) to pay off all debts. Once that court-appointed time frame is over, and you’ve made all of your payments, the debts are erased.

Credit card companies and debt collection agencies can garnish your wages if they have a court judgment. Other types of creditors, including federal, state, or municipal taxing authorities, federal student loan servicers, and creditors for domestic support obligations such as child support or alimony don’t require a court judgment for garnishing, as there are different limits and rules for these types of creditors.

Once you file for bankruptcy, all wage garnishment is ceased, under what is called an automatic stay.

If you’re tired of hearing your phone ring off the hook from debt collectors and credit companies, an automatic stay will change your life. As soon as you file for bankruptcy in Arapahoe County, the automatic stay injunction immediately triggers, which prevents collectors from contacting you about your debts as well as temporarily halting some debt collection processes such as

• Foreclosure- An automatic stay will keep foreclosure proceedings on hold for as long as your bankruptcy case is open.
• Eviction– Stays can be helpful for tenants experiencing eviction, however, the landlord can request the stay be lifted while the bankruptcy filing is still active.
• Utility Disconnections– An automatic stay won’t erase what you owe in unpaid utility bills, but it can keep your utilities from getting shut off for a period of time
• Wage Garnishment- A stay can protect you from having your wages garnished. If the debt that prompted your wage garnishment is wiped out in bankruptcy, filing for bankruptcy could stop the garnishment permanently.

Because credit card debt is discharged or erased, as the result of a bankruptcy, it can be tempting to max out your cards and only file when the last one has reached its limit. However, doing so can ultimately be a very expensive proposition. Charging a purchase on your credit card becomes fraud if you never intended to pay for what you bought. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The new law was designed to deter people from pursuing fraudulent bankruptcy. If you max out your credit limit right before filing bankruptcy, you may be charged with criminal bankruptcy fraud. The consequences of engaging in criminal bankruptcy fraud can be harsh. Anyone who makes a knowingly false statement in association with a bankruptcy filing can be assessed fines up to $250,000 and receive up to 20 years in prison.

In 2005 Colorado passed the Bankruptcy Act which requires all individuals who file bankruptcy to undergo credit counseling within six months before filing for bankruptcy relief. Additionally, after filing for bankruptcy you are required to complete a financial management instructional course. Visit the Depart of Justice website for a list of approved credit counseling agencies in Colorado.

If you’ve been having trouble making payments on time, or at all, you may have noticed your credit score taking a dip, or even a dive.  Or maybe you finally broke down and answered one of those dozens of calls a debt collector has been harassing you with, and they scared you into believing that if you file for bankruptcy you’ll ruin your credit forever.

Never trust a debt collector to give you accurate financial advice.

Allowing continual negative marks to be recorded on your credit report can be worse for your credit than filing for bankruptcy. Bankruptcy is recorded as a public record on your credit report for no more than 10 years and by using credit wisely after filing bankruptcy you can quickly re-establish a good credit score shortly after filing.

Additionally, filing for bankruptcy may even cause a rise in your credit score. That is due to large amounts of debt being discharged at once. On average, people restore their credit rankings to good standing within 1.5 to 3 years.

Bankruptcy laws were written to help people like you get a fresh, dignified start, which wouldn’t be possible if filing for bankruptcy negatively impacted your life forever.

The short answer is, yes, you can. This is called filing pro se. However, the adage “just because you can, doesn’t mean you should” definitely comes into play here.  Bankruptcy law in Colorado can be pretty tricky and hard to navigate. Even though bankruptcy, on the surface, looks like just a lot of paperwork, people looking to file bankruptcy have to know the specific issues. If you just fill out the forms and don’t understand how to properly protect your assets you can end up losing your car, your family heirlooms, and even your house. These are just a few ways we can help you if you’re considering declaring bankruptcy:

• Determine whether Chapter 7 or Chapter 13 Bankruptcy is best for you
• Assess whether you owe money on exempt, nonexempt, real, or personal property
• Make sure all paperwork is filled out accurately
• Submit paperwork according to Colorado District Bankruptcy Court’s strict deadlines
• Start you on your path to rebuilding your credit score

For more in-depth information on bankruptcy, consider perusing the following websites

United States Bankruptcy Court-District of Colorado

Department of Justice- Bankruptcy Information Sheet

United States Courts-Bankruptcy

Debt.org- Should I File for Bankruptcy?

DoJ- Information on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

And for more specific answers to questions about your specific situation, please consult our team of experienced Colorado Bankruptcy Attorneys.

Payday loans have been marketed as a quick and easy way for people to access cash between paychecks. Chances are, you’ve seen the advertisements on television, heard the radio jingles, or have seen these buildings around town. Also commonly known as check advance lenders, deferred deposit loans, or online cash advance loans, these companies use deceptive tactics to lead you into taking a loan that carries terms that benefit the lender at your expense.

Maybe they got you in the door with their policy of “serving people who have been denied access to credit by traditional lenders.” Most people obtain a payday loan because they’re trying to pay an overdue bill, falling into what’s known as a debt trap. This is a vicious cycle where you’re forced to take fresh loans to repay your existing debt obligations.

For more information on predatory lending, visit the Center for Responsible Lending website. If you’ve fallen victim to a predatory payday lender in Centennial and need help getting out of debt, contact our Colorado bankruptcy attorneys. We’ve helped many Arapahoe County residents get free from these insidious lenders through bankruptcy.

Located in Arapahoe County, the city of Centennial is named in honor of Colorado’s admission into the United States during the country’s centennial year in 1876. As Colorado’s 11th most populous municipality, Centennial has been ranked as one of the United States’ safest communities since its incorporation.

No matter your interests, Centennial has countless opportunities for you to explore. History buffs will enjoy a visit to the 17 Mile House Farm Park. One of only 2 farmhouse mile houses preserved as a window to the past, this attraction offers visitors the opportunity to explore a 160-year-old farm, complete with a historic house, red barn, silo, milk house, and loafing shed.

Foodies flock to Centennial for its annual Brew-N-Que Festival. Featuring local food vendors as well as breweries and live music, this day-long festival in July has been going strong for 7 years and is a favorite of residents and visitors alike.

Outdoor enthusiasts will enjoy a unique hiking experience at Centennial Center Park. In addition to an amphitheater, playground, and picnic area, this 2012 addition to Centennial includes a “Viewfinder Walk” trail, which provides trail walkers with an interactive trivia challenge that takes visitors on a quest throughout the park.

If you feel like you’re climbing a mountain of debt, securing help from a Centennial bankruptcy attorney is as easy as a walk in the park.

If you are heavily in debt and facing creditor lawsuits, home foreclosure, or repossession of a vehicle, bankruptcy could be a viable option that might bring you tremendous relief. You should also consider bankruptcy if you are living paycheck to paycheck, using your credit cards to meet basic living expenses, or borrowing money from family and friends to pay your bills.

If you’re tired of struggling to pay your bills; if you’re ready to get your life back and put an end to your problems with debt, contact our Centennial bankruptcy attorneys today. Our goal is to help every client pursue relief from their debts and make a fresh start financially. And we are ready to help you.