If you have reached this page, you are more than likely deeply concerned about debt relief in your financial situation and are considering taking aggressive action, such as bankruptcy. While you will learn about bankruptcy here, the advice of an experienced bankruptcy attorney is essential in providing you with information and hope, and in allowing you to form a plan of action to replace the paralysis of financial worry.
Debt Relief… A Fresh Start… These are the essence of the federal right known as Bankruptcy. Under the new bankruptcy code, when your debts become unmanageable, you are permitted to restructure your financial life to allow you to go forward with a plan. Your lawyer can assist you in this regard with debt counseling, advice and representation and help to relieve the stress that comes with financial pressure. Your bankruptcy lawyer will assist you to stop foreclosure actions, stop garnishment against your wages and bank accounts, stop repossession of your property, and stop lawsuits from proceeding until you can make a plan to move forward in an orderly manner. Contrary to rumor, credit card debt relief is still available.
If you are an individual or operate a small business, there are basically two forms of bankruptcy that are suitable for your purposes:
– Chapter 7 Bankruptcy – Liquidation
– Chapter 13 Bankruptcy – Plan Of Repayment For Individuals With Regular Income
Chapter 7 Bankruptcy will often be advised by your lawyer when:
– Debts are large in relation to income – There are no large arrearages on mortgages on property wished to be retained – No large recent tax debts – Most unsecured debts – No large equity in property
The Means Test. However, the current bankruptcy law contains a complicated “Means Test” that looks at your past six months, and current, income and your “allowable expenses” to decide whether you will be permitted to file this simpler, quicker form of bankruptcy. Generally speaking, if your six-month gross family income is above the Colorado “median income” for your household size, you might not be allowed Chapter 7 Bankruptcy relief. In this case, Chapter 13 may be your only alternative. If you do not desire to file Chapter 13, then timing may be essential in this determination.
As an example, the gross median annual incomes in Colorado ( as of 6/15/2017) for various “household” sizes currently are:
Using these figures as a starting point, if your gross income is below these figures, Chapter 7 Bankruptcy remains open as an alternative in most situations.
However, if your past six-month gross income exceeds these figures, further analysis is needed. Your allowable living expenses, not including debts that would be discharged, are then deducted from your gross income to determine if you actually have any disposable income at the end of the month. If these calculations show significant money available after living expenses, you might not be able to file Chapter 7 Bankruptcy. The rules for making this calculation are very confusing and complex.
Chapter 13 Bankruptcy will often be advised by your attorney when:
– You cannot pass the “means test”. – Mortgage foreclosure is threatened or begun – Car loans need to be caught up or car has been repossessed – Large tax debts exist – Equity in property is substantial – Co-signers need protection from your debt – Domestic support arrearages need to be caught up – Prior Chapter 7 Bankruptcy in past eight years – Non-dischargeable debt in Chapter 7 Bankruptcy such as fraud, willful injury. – You have a strong desire to repay debt
In a Chapter 13 Bankruptcy, your attorney will help you make a 3 to 5-year plan to make payments to the Court which will be used to pay certain “nondischargeable” debts, catch up mortgage and car payments, and pay some money to your general debts.
Of course, these examples regarding Chapter 7 & Chapter 13 are generalizations, and the details of every case must be considered in selecting a form of bankruptcy debt relief, from credit card debt relief and the elimination of other debt to debt consolidation. In any case, if you are considering the bankruptcy alternative, the most important thing you can do at this point in time is to arm yourself with the knowledge of an experienced lawyer. Even if bankruptcy is only a remote possibility, understanding the process may permit you to position your financial affairs so as to obtain the smoothest transition to your new financial life.
When you retain our office, we will pull yourFREE CREDIT REPORTfor you, so that we can better understand your situation and be sure that all debts are addressed.
For further information and videos regarding the bankruptcy process, click on any of the links on this page. Or contact us to arrange a free consultation with an experienced bankruptcy attorney, without cost or obligation on your part.
Considering filing for Bankruptcy or looking for Bankruptcy alternatives?
Contact our office to discuss your case, without cost or obligation at 303-797-3311
Serving the entire south Denver, Colorado (CO) Metropolitan area, including Littleton, Englewood, Centennial & Aurora in Arapahoe County, Highlands Ranch and Castle Rock in Douglas County, Denver and south Jefferson County, Colorado. Evening and weekend appointments are available.
This Law Firm is a federally designated DEBT RELIEF AGENCY as defined in the 2005 amendments to the US Bankruptcy Code. This law firm provides legal advice regarding filing bankruptcy and represents people and small businesses in filing for bankruptcy relief under the U.S. Bankruptcy Code. Debt Relief Agency Notice.