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Everyone struggles with debt at some point in their life. Getting laid off from work or even a global pandemic can lead to less income, making it more difficult to pay the bills.
Sometimes one or two missed credit card payments can turn into something far worse. A lengthy hospital stay often leads to a mountain of medical bills. Even the repercussions of a divorce can make it difficult to get caught up on bills to the point where you reach a tipping point.
Eventually, high-interest rates and a lack of funds can lead to an endless cycle of unmanageable debt. That’s when creditors and debt collectors start calling your house in the middle of the night, or possibly even your boss or family members. The bank begins threatening to repossess your car or foreclose on your home. Perhaps a particularly angry creditor petitions the court to garnish your wages.
If any of this sounds familiar, you’re probably asking the following questions:
Are you maxed out on one or more credit cards?
Thousands of Colorado residents ask these same questions every day. Fortunately, the United States government developed a program to help people who are struggling with unmanageable debt. It’s called bankruptcy.
If you have questions about bankruptcy and would like to know whether it’s an option you should entertain, you can talk to one of our Jefferson County bankruptcy lawyers without cost or obligation. In the meantime, review the information on this webpage to get a basic overview of the bankruptcy process.
When many Americans hear the word bankruptcy, they imagine a person who is irresponsible with their finances. Much of the social stigma related to bankruptcy has to do with portrayals in the media, but bankruptcy is a tool offered by the United States government to help people suffering from unmanageable debt once again become participants in our nation’s economy.
This makes good sense when you think about it because someone suffering from unmanageable debt will eventually lose everything and become a burden on the state. By offering consumers a way to correct their finances and get a fresh start, this negative end result is avoided. Most importantly, hard-working Americans have an opportunity to start over again financially.
And make no mistake about it, the overwhelming majority of people who file for bankruptcy were responsible with their finances. So why did they end up filing for bankruptcy? Statistics show that the number one reason Colorado residents file for bankruptcy is because of medical bills.
In fact, this is true all over the country because of the dire state of our medical health industry. It is estimated that 656% of Americans file for bankruptcy because of medical bill debt. All it takes is one illness or one accident to incur a mountain of medical bill debt. Tragically, the vast majority of people who file for bankruptcy because of medical bill debt have health insurance.
So as you can see, filing for bankruptcy is nothing to be embarrassed about. Quite the contrary, it’s a tool that can help you get a fresh start financially.
If you are feeling the stress and anxiety associated with unmanageable debt, contact one of our Jefferson County bankruptcy attorneys and find out whether bankruptcy is right for you. If so, they will help you file all the necessary paperwork and diligently work with you to achieve the goals you seek to attain.
For example, if you use your vehicle to get to and from work and are afraid that filing for bankruptcy will cause you to lose your vehicle, your attorney will work with you to figure out a plan best suited to maintaining ownership of your vehicle.
Contact our law office in Jefferson County today for more information.
One of the best ways to wipe the slate clean and start over financially is by filing for Chapter 7 bankruptcy. Often referred to as a clean slate bankruptcy, Chapter 7 is the simplest, fastest, and cheapest variety of bankruptcy.
When you file for Chapter 7 bankruptcy, any property you own that is not exempt may be used to help pay back your debt. While this may sound a little scary, the state of Colorado has a generous list of exemptions that allows you to maintain ownership of the possessions most important to you. Ultimately, a bankruptcy trustee will make decisions regarding property liquidation but you and your attorney will play a key role in this process.
When you talk to one of our Jefferson County debt relief attorneys, you can outline the possessions that are most important to you. In turn, they will provide you with a list of options designed to help you achieve that goal.
While Chapter 7 is the most popular form of bankruptcy in the state of Colorado, it’s not ideal for most people. Additionally, persons filing for Chapter 7 bankruptcy are required to pass a means test, which determines whether the filer’s income is at a level that allows them to file Chapter 7. If your income is too high, you may need to explore other options like Chapter 13 bankruptcy.
Often called reorganization bankruptcy, persons who don’t qualify for Chapter 7 because of maintaining a steady income still have the opportunity to reorganize their finances. The benefit of this is that your finances become manageable, but you still have to make monthly payments for a period of time, usually 3 to 5 years.
Additionally, it’s common for a large portion, if not all, of your unsecured debt to be entirely wiped away. When you file for Chapter 13 bankruptcy, the court implements a formula to determine the amount of money you will be required to pay every month. The amount is based on your income and expenses.
For homeowners seeking to prevent their houses from being repossessed, Chapter 13 bankruptcy offers a viable solution. In fact, Chapter 13 bankruptcy is often referred to as home saver bankruptcy.
If saving your home from foreclosure is important to you, don’t waste another minute. Contact one of our CO bankruptcy lawyers for a free consultation without delay.
Whenever you deal with the United States court system, you’re confronted by words and phrases that may seem entirely foreign. Getting started with bankruptcy is no different because the United States bankruptcy code is full of words and phrases entirely unique to the bankruptcy process.
What follows is a breakdown of some of the more common words and phrases you will hear when filing for bankruptcy.
Automatic stay – one of the most stressful parts of dealing with unmanageable debt is getting phone calls from creditors and debt collectors at all hours of the day and night. Some of the more unscrupulous debt collectors will call your boss or even family members in an attempt to embarrass you into giving them money.
The automatic stay goes into effect the moment you file for bankruptcy and it prevents any of your creditors from contacting you in any way. Another benefit of the automatic stay is that it stops all wage garnishments, vehicle repossessions, and even home foreclosures.
Discharge – when the court determines that you no longer need to pay a creditor back for a debt you incurred, the debt is considered to be discharged. Discharging debt is one of the key ways the court helps persons filing for bankruptcy get back on their feet financially.
Adversary proceeding – this is a civil lawsuit encompassed by the bankruptcy process in which debtors, creditors, trustees, and third parties weigh in to help the court decide whether that is going to be discharged
Exemption – when you file for bankruptcy, certain dollars are attached to various categories of assets that you can earmark for assets that you own. These are called exemptions because the assets are exempt from liquidation. The State of Colorado has a generous list of exemptions but it’s extremely helpful to work with a qualified Jefferson County bankruptcy lawyer who understands how to apply the list of exemptions to personal assets.
Garnishment – if you fall behind on loan payments, the lender may ask the court for compensation by garnishing your wages. Obviously, wage garnishment is something to be avoided at all costs.
Means test – as explained above, the means test is used to determine whether a person qualifies for Chapter 7 bankruptcy. Simply stated, if you make too much money, you won’t qualify for Chapter 7 bankruptcy and the means test is used to make the determination. If you’re curious about whether you qualify, take a look at the Department of Justice means test web page.
Meeting of creditors – persons living in Jefferson County who file for bankruptcy are required to attend this meeting, sometimes referred to as a 314 meeting. However, in most cases, your Colorado debt relief lawyer can attend the meeting in your place. It’s also highly possible that creditors won’t show up to the meeting. During this meeting, creditors are afforded the opportunity to inquire why you are filing for bankruptcy.
Predatory loans – when creditors use deceptive practices or prey upon vulnerable people experiencing unmanageable debt, the loans they offer are called predatory loans. Honest hard-working people hate falling behind in debt, so they may seek out a payday loan lender to help them pay a late car payment or a late house payment. However, the ridiculously high-interest rates associated with predatory loans often make the situation worse.
Common payday loan outlets use phrases like fast cash, cash advance loans, or check advance loans. If you fail to pay back the loan with interest, the more unscrupulous lenders May threaten you or try to coerce you into withdrawing money from your retirement account to pay down the loan. It is never a good idea to withdraw money from a retirement account to pay down a loan. If you’re dealing with a predatory lender, you need to contact our law office immediately so that we can help.
Schedule – this is basically a form. When you file for bankruptcy, you’re required to fill out schedules which are then submitted online or in person in the district of Colorado Federal Bankruptcy Court, which is located in Denver. When you work with one of our Jefferson County bankruptcy attorneys, they make sure that all of your schedules are filed correctly and on time.
Secured debt – when you take out a loan and use something as collateral, it is referred to as secured debt. A common example of secured debt are loans on vehicles where the vehicle is used as collateral for the loan. If you can’t pay back the loan, the lender can repossess your car because it was used as collateral.
Trustee – a trustee is a person assigned by the court to review your finances when filing for bankruptcy. They will look for red flags or any indicators of fraud so it’s important to do everything right in the days and months leading up to filing for bankruptcy.
Unsecured debt – when you obtain a loan without collateral, it is referred to as unsecured debt. Common forms of unsecured debt include credit cards and medical bill debt. Persons filing for bankruptcy often have all or most of their unsecured debt discharged.
There are other words and phrases unique to bankruptcy not covered in this glossary. As you review the United States Bankruptcy Code if you have questions or concerns feel free to contact one of our Jefferson County debt relief lawyers so that they can help you take the next step.
For the most part, common consumers don’t acquire unmanageable debt because of negligence or irresponsibility. Almost everyone who files for bankruptcy in the state of Colorado does so because they fall on hard times. Nobody in their right mind purchases a vehicle expecting to fall behind on payments 2 years down the line.
However, all it takes is one or two unlucky events for many people to fall into the downward spiral of unmanageable debt.
Sadly, many people put off filing for bankruptcy because they’re embarrassed or are holding on to the idea that a sudden windfall will help them get caught up on bills. This is unfortunate because waiting to file for bankruptcy often makes problems worse.
The following statistics were compiled by our Jefferson County bankruptcy lawyers in an effort to show that filing for bankruptcy is nothing to be embarrassed about. Almost every American carries debt, which is why wealthy and poor Americans are both just as likely to take advantage of the bankruptcy process.
There are other words and phrases unique to bankruptcy not covered in this glossary. As you review the United States Bankruptcy Code if you have questions or concerns feel free to contact one of our Jefferson County debt relief lawyers so that they can help you take the next step.
Consider the following statistics:
To prove the point that bankruptcy isn’t just for the middle class, consider the fact that John Wayne, Thomas Jefferson, Mark twain, Walt Disney, and President Harry S. Truman all filed for bankruptcy. And it’s almost a guarantee that none of them felt any embarrassment about it.
If you’re interested in reviewing more statistics about bankruptcy in the United States, take a look at this consumer debt report from 2021.
Jefferson County boasts a population of more than a half million and is the fourth most populous city in the State of Colorado. Its nickname is “Gateway to the Rocky Mountains,” which is fitting because of its location and the fact that people travel through Jefferson County in search of their own Rocky Mountain high.
If you’re interested in reviewing more statistics about bankruptcy in the United States, take a look at this consumer debt report from 2021.
People living in Jefferson County, affectionately call it “Jeffco,” because it’s short for Jefferson. The county’s website is abbreviated to Jeffco, as is the school district. Even the airport used to be called Jeffco airport, proving that Jefferson County residents love nicknames almost as much as their county.
Lakewood is located in Jefferson County and it’s one of the most populous cities in Colorado. Golden Colorado is the county seat of Jefferson County and it’s famous for the Coors brewery. If you’re in Golden, you can go on the Coors Brewery Tour and learn all about one of America’s most famous beers.
Fun fact: Jefferson County is one of the very few counties in the U.S. that borders ten or more other counties. If you enjoy beer tours, bordering other counties, or abbreviations, you’re going to love Jeffco.
If you’re living within the boundaries of Jefferson County and are having trouble keeping up with bills, talk to one of our legal professionals about your situation and find out whether you qualify for bankruptcy.
If unmanageable debt makes you feel like you’re at the end of your rope, it’s time to take action. Imagine not having to worry every time your phone rings. Imagine not having to constantly look out of your window to make sure your vehicle hasn’t been repossessed. Imagine not having to worry about how you’ll pay bills every 30 days.
This is what bankruptcy can do for you and it all starts with a free consultation from one of our Jefferson County bankruptcy lawyers. When you call, there is no obligation. Our goal is simply to help you determine whether bankruptcy is right for you and forge a plan toward financial freedom.
If your car has been repossessed or the bank is threatening foreclosure on your home, don’t waste another minute. Bankruptcy is a tool thousands of Colorado residents use every year to escape the unbearable weight of unmanageable debt.
Financial freedom may be a phone call away. Contact our office today and let’s work together toward a viable financial solution.