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Even the most financially responsible can face financial hardship. The government understands this and therefore created the U.S. Code Title 11, or the law that guides bankruptcy proceedings in the United States. Chapter 13 of Title 11 guides what is called “reorganization bankruptcy.” Chapter 13 allows you to keep both your secured and unsecured assets if you complete a court-mandated payment plan.
Chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, involves selling your assets to pay off your debts. Chapter 13 bankruptcy allows you to keep your assets as long as you pay off your debts. To determine which is better for you, contact Adams County bankruptcy attorneys focusing on Chapter 7 and Chapter 13 cases. They will be able to guide you on which bankruptcy option is right for your unique financial circumstances.
Many people choose to file for Chapter 13 bankruptcy because it helps them to avoid foreclosure on their Colorado home. Others choose Chapter 13 because it’s less expensive to file than Chapter 7. Some simply choose Chapter 13 because it only stays on your credit for seven years compared to ten.
To file for Chapter 13 bankruptcy, first, you need to find Chapter 13 bankruptcy lawyers in Thornton. They will help you to determine the best course of legal action to resolve your specific financial circumstances. If they advise you to proceed with Chapter 13 bankruptcy, the process will go as follows:
1. You Will Attend Credit Counseling
Before you can file for Chapter 13 in Thorton, you are first required to take a credit counseling course approved by the U.S. Trustee’s office. The Department of Justice offers a list of programs on its website.
2. You Will Collect Documentation
Next, you will work with your Adams County Chapter 13 bankruptcy lawyers to collect all the paperwork needed for filing. Some forms you may be found in the District of Colorado bankruptcy court, along with checklists containing the types of documents your attorney will request.
3. Your Attorney Will File The Bankruptcy Petition
Once you and your attorney have collected all the necessary documents, you will file them along with a repayment plan online with the District of Colorado bankruptcy court.
4. You Will Start The Repayment Process
30 days after filing for Chapter 13, you will make your first payment. Making a payment communicates to the court and your creditors that you intend to honor the payment plan system. If you do not make a payment, the District Court of Colorado may cancel your Chapter 13.
5. You Will Attend A Meeting Of Your Creditors
Next, the Colorado courts will issue a “Notice of Commencement of Case.” This notice is sent to all the creditors involved in your case and followed by a meeting with your creditors known as meeting 341(a). In some cases, only your Thornton Chapter 13 bankruptcy attorneys will attend this meeting. The meeting is designed so creditors can ask questions and learn more about your financial status. In some circumstances, creditors may choose not to attend. Upon the conclusion of the meeting, creditors have 60 days to dispute your right to discharge.
6. You Will Go To The Confirmation Hearing:
Next, you will attend a confirmation hearing. The Colorado judge will review and approve your case if there are no objections from your creditors or your trustee.
7. You Will Make Your Court-Mandated Chapter 13 Payments
8. Attend A Debt Education Course
Finally, you will attend a debt education course. Like the credit counseling course, this course must be approved through the Department of Justice. You can find a list of approved debt education courses on the Department of Justice website.
Speak to your Colorado Chapter 13 bankruptcy lawyers to determine if you are eligible. They will help you to understand if Chapter 13 is your best course of action, or if another legal option is best for you. Chapter 13 is less stringent than Chapter 7, with no need to take a means test in order to qualify. To qualify for Chapter 13, you must be an individual or filing jointly as two individuals, meaning organizations like limited liability companies (LLCs) and corporations are ineligible. Next, you will need to earn a regular income, which includes retirement and social security income. Finally, your total unsecured and secured debt cannot exceed $2,750,000 as of the date of filing in order to meet the qualification.
Both secured and unsecured debts can be discharged with Chapter 13 bankruptcy in Thornton. However, certain debts may not be included. These include things like debts for spousal or child support, tax debts, student loans, and some civil or criminal debts. Regardless of the Chapter 13 ruling, you will still be responsible for paying these debts.
There are many benefits to hiring a bankruptcy attorney to handle your Chapter 13 bankruptcy in Thornton, Colorado. These include:
1.Attorneys understand all the legal differences between different types of bankruptcy filings. They can help to guide you through what option is best for your unique financial circumstances.
2.Chapter 13 bankruptcy lawyers serving the entire Thornton Metro area understand the laws specific to Adams County, the State of Colorado, and the federal government. They will guide you through the process.
3.Bankruptcy attorneys help save you money. They will minimize the number of exemptions you claim thus helping you to save your property and assets.
4.When you hire an attorney, they deal with all the documentation and negotiations with the creditors and courts. In this way, you can focus on getting yourself back on track.
5.Finally, your Thornton bankruptcy attorney will ensure that everything is filed properly and without questions or errors. Your bankruptcy can proceed quickly and efficiently.
Chapter 13 bankruptcy is a helpful option for individuals struggling with overwhelming debt. The best way to determine if Chapter 13 is right for you is to speak to a qualified bankruptcy attorney in Adams County. They’ll provide the guidance you need to make the best financial decision for your future.