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Drowning in debt and being harassed by creditors is a disorienting way to live. If you’re overwhelmed with bills or coming up short on your mortgage or car payment, you need debt relief help now. But how do you know if bankruptcy is the right option for you? And if you think bankruptcy is the right option, how do you know whether or not you qualify?
Most people seek debt relief by filing for bankruptcy because they simply have no other way out of their financial crisis. Harassing phone calls from creditors can lead to stress levels that are off the charts. Worse, sometimes unscrupulous debt collection agencies seek to contact family members and employers in an attempt to embarrass you into paying them money you simply don’t have.
If you’re facing financial hardship and need a fresh start by filing for bankruptcy, we’d be happy to talk with you about your options. Our team of legal professionals has years of experience using a results-oriented approach that offers clients a compassionate and, ultimately successful, experience during one of the hardest times in their lives.
Our trusted Denver legal team has helped clients all over the state, including:
If you’re unsure whether or not you qualify for bankruptcy, you can trust our experienced CO bankruptcy attorneys to give you the crucial guidance you need as you sort out your options. Our firm specializes in helping clients resolve their debts so that they can quickly return to a normal life.
We know most people who are struggling financially are good people who have fallen on hard times. Whether you’ve been knocked down by divorce, medical problems, or job loss or just made some mistakes starting out with credit, you deserve a fresh start.
Chapter 7 bankruptcy is the most commonly filed individual bankruptcy chapter in Denver. However, thanks to a new law passed in 2005, it’s become much harder to file for Chapter 7 bankruptcy than it was in previous years.
That new law is called the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). It makes it harder to file for bankruptcy to keep people from abusing the system. Before the BAPCPA was passed, you could file for bankruptcy under Chapter 7 regardless of your income level; rich or poor, middle class or wealthy, Chapter 7 was a safety net for anyone seeking debt relief through bankruptcy.
Now, in order to file for bankruptcy you need to take a means test that will determine your assets and income versus your ability to pay your debts. That means that in order to be able to file for bankruptcy in Denver you must meet all of the conditions, including passing the means test.
There are two ways to pass the means test:
1. If your income is below the Colorado median for your household size you are exempt from the test and may file a Chapter 7.
2. If your income is over the Colorado median income for a household your size then you must complete the means test by calculating your income and expense information. This portion of the means test allows you to deduct allowable monthly expenses from your current monthly income to calculate your disposable income. The expenses used are a combination of national and Denver expenses, and disposable income is the income available after expenses that may be used to repay your debts. If your disposable income is below a specific amount, you may still qualify for Chapter 7 bankruptcy.
Chapter 7 Bankruptcy is used to eliminate debt. It is often referred to as “liquidation” or a “straight” bankruptcy because virtually all debt is eliminated in a relatively short amount of time. Generally, Chapter 7 bankruptcy cases last only 4-6 months from start to finish.
That, of course, is why it is the most popular bankruptcy Chapter, and why so many people took advantage of Chapter 7 bankruptcy before BAPCPA was enacted.
It’s important to note that another deciding factor on whether or not you can file for Chapter 7 bankruptcy in Denver County and the surrounding areas is whether or not you’ve filed for bankruptcy before. If you have previously filed a bankruptcy case (either Chapter 7, 11, or 13), and received a discharge, there is a waiting period before you can obtain another discharge.
As of 2005, you can now be denied a discharge if you received a discharge in another Chapter 7 case filed in the last eight years; before BAPCPA, you had to wait six years instead.
For a more in-depth look at Chapter 7 bankruptcy qualifications, head over to Debt.org’s Chapter 7 Bankruptcy page, or contact our experienced Denver County Chapter 7 Bankruptcy attorneys today for a no-cost case evaluation.
The second most common form of personal bankruptcy filed in Denver is Chapter 13. Just like with Chapter 7 cases, there are specific requirements to be eligible to file a Chapter 13. The most important eligibility requirement is that you must have regular income to file a Chapter 13. That is why Chapter 13 bankruptcy is commonly referred to as a “wage-earners bankruptcy.”
The primary purpose of a Chapter 13 bankruptcy is to create a repayment plan for your debts. It allows you to retain all of your assets while repaying all or a portion of what you owe to your creditors over a 3 to 5-year period. In many cases, you will only be repaying your unsecured creditors a small percentage of the debt you owe.
Filing a Chapter 13 means that you will make monthly payments to the Chapter 13 Trustee – these are called Plan Payments. The amount of your monthly payment will depend on several factors, including your income, the amount of your debt, what assets you want to keep, and the value of your assets. You will be required to provide all of your financial information to your attorney and who will work with you on your budget so that you can achieve an affordable monthly payment.
Deciding whether or not to file bankruptcy is both a personal and challenging decision. There are many reasons why people file for bankruptcy, but it is important that you choose the right type of bankruptcy to address your particular financial problem. Many people recognize that they need help but do not know or understand their options. That’s why it’s important to hire an experienced Colorado bankruptcy attorney.
No matter the scope and complexity of your problem, we can help you resolve your debts and financial obligations. Our knowledgeable Denver County area bankruptcy attorneys are experienced, helpful, and compassionate.
The bankruptcy attorneys at our firm have experience in Chapter 7 and Chapter 13 bankruptcies, foreclosures, and repossessions. Our clients have found relief from their credit card debt, medical debt, wage garnishments, payday loans, and creditor harassment. We recognize the unique difficulties and responsibilities Coloradans face and tailor our services to meet your needs.
Contact us today for a free case consultation. Our attorneys are available to meet with you or talk on the telephone to answer your questions and discuss what type of bankruptcy is best suited for you