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If you are reading this webpage, it’s probably for one of two reasons. Either you are facing foreclosure on your Denver home and want to stop it or you’re thinking of filing for bankruptcy so that you can keep your home. Maybe both of those reasons are why you’re here.
Either way, it can be hard to admit that you need help and that you owe more than you can pay. We applaud you for taking the first step in seeking debt relief help, whether you live in Denver County or the surrounding region.
After all, your house is not just real estate, it’s your home. It is where you live and raise a family. If you are at risk of losing your home, it is time to take the next step. You should contact an experienced Denver bankruptcy attorney to see what your options are so that you can make an informed decision as to what is right for you. If you are under threat of foreclosure or have an active foreclosure pending, it is not too late to save your home.
The cost of living throughout Denver is rising yearly. Thousands of homeowners across the state are struggling with crushing debt and are worried about losing their homes due to foreclosure.
If that sounds like you, bankruptcy is an option you may want to seriously consider. But how might it affect your status as a homeowner? Take a look at the answers to these 5 frequently asked questions about bankruptcy and foreclosure—then contact our firm for a more personalized assessment.
1. Will I lose my home if I file for bankruptcy in Denver?
This depends on your situation. Bankruptcy may directly cause you to lose your home if you file Chapter 7 and cannot protect your home from the liquidation process. This protection is called an exemption. On the other hand, iIf you file Chapter 13, you won’t need to worry about liquidation. You will have 3-5 years to catch up on delinquent payments (and continue making regular payments), and, if you succeed, the threat of foreclosure from your lender will be gone by the end of your case.
2. What is the best way to protect my Denver home during bankruptcy?
Colorado offers generous exemptions when petitioners file for bankruptcy in the state. An exemption is a law that protects your property when you file for bankruptcy. The Colorado homestead exemption allows homeowners who file bankruptcy to protect $250,000 of equity in their home ($350,000 if they are 60 or older). Some other examples of Colorado state bankruptcy exemptions include:
3. Will I be able to buy a home after declaring bankruptcy?
If you’ve filed for bankruptcy or been through foreclosure at some point and want to buy a home, all hope is not lost. If you take the right steps, it can be possible to obtain a mortgage and buy a new home. The biggest hurdle will be the waiting period if you’re planning on financing a new home. Government-issued loans such as FHA or VA loans have a waiting period of 1-3 years, and conventional loans have a waiting period of 2-7 years. The amount of time that needs to pass before you qualify for a new mortgage depends upon several factors, such as the type of loan you’re applying for, the type of bankruptcy filed, and whether or not you have a prior foreclosure in your credit history.
4. Will filing for bankruptcy stop my house from being foreclosed on?
Because of the automatic stay that goes into immediate effect as soon as your bankruptcy case has been filed, bankruptcy both prevents foreclosure and halts existing proceedings. But the automatic stay only lasts for the duration of your case, so your deficiencies must be resolved at the end of your bankruptcy if you want to keep your home after filing. Generally, Chapter 7 delays foreclosure by several months, while Chapter 13 may help you permanently eliminate the threat. The following two sections of this webpage offer more in-depth answers about Chapter 7 and Chapter 13 bankruptcy and foreclosure.
5. What is the best way to keep my Denver home if I’m deep in debt?
Unfortunately, there is no one size fits all answer to this question. It’s impossible to answer without a comprehensive assessment of your unique situation. Some Denver homeowners will greatly benefit from bankruptcy, while others will benefit more from a bankruptcy alternative. The best way to determine which debt-relief strategy is right for you is to retain counsel from an experienced lawyer with experience handling bankruptcy cases.
Although Chapter 7 bankruptcy can temporarily stop foreclosure proceedings, its ability to ultimately save your home from foreclosure is limited. If you want to permanently stop foreclosure, you’ll need to get current on your payments by the end of your Chapter 7 bankruptcy.
However, you can still temporarily halt foreclosure proceedings if you file for bankruptcy thanks to the automatic stay, and this can sometimes give you the time that you need to get the money to get caught up with your mortgage.
For the best chance at saving your home during bankruptcy, you should work with a CO bankruptcy attorney. Someone with experience and knowledge that can help you figure out whether you will be able to keep your home before filing for Chapter 7 bankruptcy because you can’t cancel the bankruptcy proceedings once they’ve started.
Chapter 13 bankruptcy, also known as reorganization bankruptcy, is usually the best option for Coloradans looking to keep their home from foreclosure. This is because filing Chapter 13 bankruptcy allows you to include your past due mortgage payments in your bankruptcy plan to avoid foreclosure.
With Chapter 13 bankruptcy, all of your debts are combined into one manageable payment meant to help you pay down your outstanding debt over the course of several years.
Chapter 13 may be a good option for Coloradans who have a stable income, as you will be required to maintain the agreed-upon payments for between three to five years. However, it’s worth noting that if you lose your job or experience adverse financial circumstances that prevent you from staying current on your payments, you can ask the bankruptcy court to modify your plan and reduce the payment amount or convert your case to Chapter 7.
Bankruptcy is not a solution for everyone. However, if you are unable to pay your debts or you are at risk of losing your home, bankruptcy may be a good solution to help you regain your financial independence. Our Denver bankruptcy attorneys can help stop foreclosures, prevent repossessions and stop harassing debt collectors.
Bankruptcy can be a difficult process to navigate alone, especially if you’re worried about the added possibility of losing your house to foreclosure. Personal bankruptcy can help qualified individuals receive a fresh start and rid themselves of unwanted debt, including past-due mortgage payments.
An experienced Denver Bankruptcy Lawyer from our law firm can help guide you through the process. Our mission is to provide outstanding and affordable services to all of our clients, help them discharge unwanted debt, and guide them on the path toward the fresh start they deserve. We are ready to help you do the same.