Filing Bankruptcy In Colorado: 4 Things You Need To Know
6 days ago Filing bankruptcy in Colorado consists of taking a credit but it is possible to often file Chapter 7 bankruptcy without an attorney.
Jun 30, 2021 If you own little property and dont make a lot of money, it might be possible to file bankruptcy pro se . But while filing;
Apr 4, 2020 So, a debtor who qualifies to file bankruptcy under Chapter 7 can do so in the Bankruptcy Court for the District of Colorado if he or she has;
Debts That Can And Cant Be Discharged In Chapter 7 Bankruptcy
Chapter 7 should dismiss most of the debts you owe, but there are some hard-and-fast debts that cant be discharged in Chapter 7.
The list of non-dischargeable debts includes:
- Child support
- Student loans must prove undue hardship
- HOA fees if you surrender your home or condo
- Any other form of unsecured debt.
Do People Ever Recover From A Bankruptcy
Bankruptcy is an overwhelming experience. However, it is important to remember that there is a life after bankruptcy. Bankruptcy is a tool to be used to get a person back on his or her feet. It is not meant to destroy but to provide an opportunity to build again.
There are many things a person can do to rejuvenate their credit and find themselves back on their feet in a few short years after filing bankruptcy.
First, it is important to let go of the fact that you had to file. No one is going to be actively seeking your information unless they are looking to give you a loan. Most of the time, you will have given that person permission beforehand.
Next, most professionals suggest using a small credit card to make one purchase a month and pay off the entire amount each month so you dont accrue any interest charges. This will begin to build your credit piece by piece.
Next, it is important to keep a vigilant eye on your credit score to understand what is happening with its growth. Many free websites allow you to monitor your score without price or penalty.
A bankruptcy can get you back on the road to financial freedom. It is amazing how much stress is alleviated once the decision is made to use the bankruptcy to get out from underneath the burden on debt.
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Is Bankruptcy Right For Me
Until you meet with a bankruptcy attorney from Cohen & Cohen, P.C., we cannot answer that question. But chances are that if you are looking at bankruptcy as an option you have already exhausted all other options. Usually an individual comes to the conclusion that bankruptcy might be an option months after it truly became a good option for them. Probably in only 1 out of 10 consultations will we advise a client not to file for bankruptcy due to other options, and trust us, we believe that a client should pursue other options if they make sense. Bottom line, if you think you need bankruptcy protection, your probably right.
What Is The Secret To Knowing If Your Credit Score Will Go Up After Filing Bankruptcy
Just as there is no real secret pill to lose weight, there is no easy secret to know if your credit score will be restored after filing bankruptcy. There can be a dramatic shift in your score after the bankruptcy if you had a stronger credit score to start with, usually 650 or greater. If the score is low to start with there will not be as much of a noticeable decrease.
It is possible to use some credit reporting tools to get an estimation of what the decrease will be, as well as the estimated 12-month post- bankruptcy score.
It is a common myth that your credit score stays low for seven to ten years following a bankruptcy.
This is simply not true. The seven to ten year period is how long the actual notation of the Bankruptcy Filing as a public record will stay on your credit report.
In fact, if you are diligent in your efforts to rebuild your credit, it is entirely possible to be back in the 700s within two years from the filing of a bankruptcy. This includes knowing your current score, using a credit card wisely by repaying it in full each month, and staying vigilant to notice changes in your score.
An experienced bankruptcy attorney can help guide you on how to go about re-establishing credit post-bankruptcy as well as how to monitor your credit to make sure that none of the debts included in the bankruptcy comes back to detrimentally impact your score, which is illegal once the case is filed.
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Why Do I Feel So Bad About Filing Bankruptcy
In all our years of practice, we have never had a client who wanted to file bankruptcy. People have an overwhelming feeling that they have failed, that they are doing something terribly wrong, and that the consequences in the long run will be bad. All people feel a strong moral obligation to pay their debts, and feel terribly guilty that they must consider bankruptcy as an option. These feelings are based on fear.
To understand this fear and the guilt that goes with it, you must look at the real causes of bankruptcies for most people. It is not being irresponsible or bad in some way, but it is being hit with some of the devastating problems that happen in life to everyone. We have found that bankruptcies are generally caused by certain life events that wreak havoc with your finances. They are: problems with unemployment or a loss of pay; health problems; problems with a child or elderly parent; divorce; problems with a small business; or, particularly lately, problems with real estate. These problems hit everyone you know at some time in their lives, but depending on your circumstances and timing, they can be devastating to your finances through no fault of yours.
Do I Have To Qualify For Bankruptcy
Sort of. You do have to qualify for a Chapter 7 bankruptcy by passing the Means Test. This is based off of your last 6 months of income. It is important to note that they did not take away bankruptcy with the new law. This is a myth which we hear all too often. Even if you dont qualify for a Chapter 7, you can almost always find relief under Chapter 13 or even Chapter 11.
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Colorado Bankruptcy Filing Process
The bankruptcy filing process in Colorado is similar to other states. Generally, the process is as follows for Chapter 7 bankruptcy:
Is Filing Bankruptcy Expensive
Filing anything in court can be an expensive process. Filing fees alone can make bankruptcy an unattractive option.
Chapter 7 filing fees total to $335. and Chapter 13 costs $310.
These payments can be made in installments with permission from the court.
In rare circumstances, the court may even waive the fee entirely for indigent individuals. This means you must make less than 150 percent of the poverty line, and you must be unable to make the necessary installments.
You will also be required to receive credit counseling within six months. This can cost around $50 per class, but there are places that do offer it cheaper.
You will also have the fees of an attorney if you choose to hire one. The cost of an attorney is dependent upon your specific circumstances and what Chapter of bankruptcy it is determined is best for you.
There are clear advantages to hiring an attorney so you do not end up losing any of your property or otherwise doing anything to potentially impact your ability for a discharge.
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Filing Bankruptcy In Colorado
Youll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America . There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers .
What You Cannot Do When In Bankruptcy In Colorado
If you will be getting married before filing for bankruptcy, your lawyer will need to know your spouses income, as this income may push a chapter 7 into a;
If you do have non-exempt equity, there are steps you can take to minimize it which should be discussed with a knowledgeable chapter 7 bankruptcy attorney in;
Filing chapter 7 bankruptcy in your state, Colorado, including applicable exemptions, a means test calculator, and access to lawyers all free and specific;
Colorado Do-it-Yourself Bankruptcy filers can receive the same results as a Colorado Bankruptcy Lawyer by filing their paperwork here, and will later;
Wink & Wink offers free consultations with one of our attorneys. Colorado Bankruptcy Exemptions Filing Bankruptcy Without Your Spouse;
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Can I File Bankruptcy Myself
At Cohen and Cohen, we encounter a lot of interest from potential clients in filing their own Colorado bankruptcy pro se. You can do it. In fact, there are some instances where there are not any problems. But we cannot stress enough why filing on your own is a bad idea for several reasons:
You will have a far easier time with less risk if you file bankruptcy using an experienced Colorado bankruptcy attorney. Have an attorney available to advise you from the start and avoid common pitfalls and unnecessary risks.
Chapter 7 Bankruptcy Lawyers In Loveland Working To Provide You With A Brighter Future
Financial stress and mounting debt can be a major headache for anyone, especially when trying to make ends meet. Struggling to maintain a certain standard of living is a telltale sign that something might need to be done about your financial situation. Fortunately, there are laws and procedures in place that allow those struggling with debt a way to shed their financial struggles and start fresh. Bankruptcy is a viable method to clear debt from your name and reposition yourself.
Although there are a few types of bankruptcies available, a popular choice among certain people is Chapter 7 bankruptcy. Chapter 7 bankruptcy gives you the ability to smash the reset button and gain financial control over your life again. Chapter 7 is not for everyone as it requires specific qualifications to be eligible. A Chapter 7 bankruptcy lawyer can check your eligibility and guide you through the bankruptcy process from beginning to end.
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Are Certain Debts Non
Absolutely. The right to a fresh start is not without limitations. You cannot discharge fraudulent debts, some taxes, student loans , amongst others. The list of what is non-dischargeable is as much black letter law as it is good lawyering. However, if you have been honest and forthright, chances are that you will not have any problems.
Colorado Bankruptcy Exemptions Protect The Following Property:
- Home, including mobile homes up to $75,000.00 in equity, or $105,000.00 if you are older than 60 or disabled
- Household goods up to $3,000.00. Household goods include, but are not limited to, computers, sound systems, cameras, bicycles, and the usual furniture, appliances, etc.
- Food up to $600.00.
- Motor vehicles up to $7,500.00 in equity in vehicles or bicycles, or $12,500.00 if you are older than 60 or disabled
- Tools of your trade up to $30,000.00
- Clothing up to $2,00.00.
- Jewelry up to $2,500.00
- Miscellaneous up to $1,500.00 in books and family pictures; one burial site for you and each of your dependents; health aids; up to $3,000.00 for library of professional person.
Figuring out what property youll be able to keep when you file bankruptcy is one of the best reasons to hire an experienced lawyer.
To learn more about Colorado bankruptcy exemptions and whether or not Chapter 7 bankruptcy or Chapter 13 is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Use our online scheduling system allows to schedule bankruptcy consultation at a time that is convenient for you or call 303.331.3403.
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What Debts Will Be Discharged In Chapter 7 Bankruptcy
If you are eligible to file for Chapter 7 bankruptcy, you may find that you are able to discharge many pesky common debts that have been affecting you for years. Common debts that are discharged after filing for Chapter 7 bankruptcy may include credit card debt, medical bills and expenses, and certain personal loans. You may also be able to have your mortgage and auto loans discharged but it is possible that you will also have to surrender the rights to those properties. In other words, filing for Chapter 7 bankruptcy doesnt mean you can stop making car or mortgage payments and expect to keep them. Consulting with a bankruptcy lawyer can clue you in on what types of debts can be discharged in your Chapter 7 bankruptcy.
Will They Send Someone Out To My House To Look Through All Of My Things
Although this is very unlikely, there are circumstances where a trustee may be required to visit your home. Typically this is required if you fail to report certain assets or properly provide values to your property. If you are honest, and you properly report your assets you will protect yourself from such an intrusion.
A trustee will never, of course, show up unannounced. They must set a time with you, but you must also show up as requested. Trustees will also not be allowed to take things from your home without your permission. Even so, an attorney can be by your side to protect you from these intrusions.
Your attorney will help you to make certain you have appropriately and accurately reported your assets so no one will need to come to your home.
Do You Represent Primarily Debtors
In the past that is generally what we did. However as our practice has grown we tend to represent both sides of the coin. But we cannot stress enough how valuable representing both sides is to our consumer and business clients as we have become that much more familiar with the creditor side of the bankruptcy laws.
Will I Lose My Car
Like the exemption described above for your home, there is a similar exemption in place for car owners. The most important fact here is that if you do not own your car, or you are not currently making payments, you cannot keep your car even if it does fit in an exemption. Therefore, it is important that you stay up to date on your car payment if you plan to keep it.
You first must determine how much equity is in your car. If you own your car with no loan, the equity in your car is its total fair market value. If you do have a loan, equity is the totally fair market value minus the amount left on your loan.
Finally, if you have leased a vehicle or for some other reason have no other ownership rights, you have no equity to defend. If you have no equity, your car cannot be sold, but the lender may repossess your car. In Colorado, an individual can exempt $7,500 in equity .
Just as if you have equity in your car over the allowed exemption, you can use a Chapter 13 bankruptcy to protect the car and pay back the equity through the bankruptcy.
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Alternatives To Filing Chapter 7 Bankruptcy
If you are wondering;if you should file for bankruptcy, there are many nonprofit consumer credit counseling organizations that have the ability to negotiate more favorable terms with creditors. Its particularly effective with credit-card companies. The repayment program will be managed expertly and fees could be avoided.
Here are some options:
Debt Management Plan; Entering into a debt management program can provide relief from interest rates, late fees and penalties from creditors. Under a DMP, which is negotiated by credit counselors, you promise to pay back the full principal over time in an efficiently managed manner.
The debt management program provides an organized monthly payment plan. It provides an opportunity to handle the debt more efficiently than trying to sort it out yourself. By keeping the payments on track, it will be good for your credit score.
Some caveats: There is generally an enrollment and maintenance fee and the DMP is never a guaranteed option. Creditors have no obligation to participate.
Debt Consolidation This option reduces interest rates and combines all of your debts into one manageable monthly payment. Under debt consolidation, you take out a loan, which is used to consolidate and pay off all of your other debts.
Personal Loan for Bad Credit; Yes, you can get a personal loan with bad credit, depending on your situation. You can expect high interest rates and should only consider this option if you can truly afford the monthly payment.
Bankruptcy Myth #: I Cannot Discharge My Irs Tax Debt
There is a common myth that you cannot get rid of tax debt in bankruptcy. This is not true. However, there are very specific rules that must be met in order to eliminate your tax debts in bankruptcy.
The general rules are as follows:
- The tax debt must be more than 3 years old,
- The tax return must have been filed at least 2 years prior to the bankruptcy filing; and
- You cannot have been found guilty of fraud or tax evasion for the dischargeable tax years.
Tax situations can be more complicated than the basic rules mentioned above. It is advisable to seek the counsel of an experienced bankruptcy tax attorney to make sure you do not lose out on the advantages bankruptcy may provide in eliminating taxes.
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