Chapter 13 Bankruptcy In Colorado May Be Your Best Option

Most people researching bankruptcy have read that a bankruptcy will stay on your credit report for 10 years from the day you file. It’s true that a Chapter 7 bankruptcy will stay on your credit report for 10 years, but that’s not the case for a Chapter 13 bankruptcy.

Chapter 13 bankruptcy requires to repay a certain amount of your debt for a period of three to five years. Since you repay some of your debt, Chapter 13 will only stay on your credit report for 7 years from the day you file.

This is important information for people who assume that Chapter 13 will stay on their credit report longer than a Chapter 7 since the repayment period can be so long.

How long a bankruptcy will be reported on your credit report is only one factor to think about when considering bankruptcy. You should also know that an employer cannot fire you for filing, but in Colorado it hasn’t been decided whether or not an employer can make a hiring decision based on your bankruptcy filing. If you’re concerned about them finding out, the best course is to tell them before they run your credit report.

You should also know that if you are married and decide to file bankruptcy without your spouse, your filing will not have any impact on your spouse’s credit report. Your spouse will not be included on your bankruptcy petition. The only issue related to filing without your spouse is that we have to take into consideration his or her income when determining whether or not you’re eligible for a Chapter 7 bankruptcy or how much you would have to repay your creditors in a Chapter 13 bankruptcy.

Bankruptcy is just one option you have if you’re struggling with your finances. If you have questions, we hope you’ll come in for a free, no-obligation consultation with an attorney. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.

You don’t have to dig up all your creditors to file bankruptcy. That’s our job.

After a potential client comes into my office for a free consultation, it isn’t unusual to not hear from them for many months. There are several things that may keep someone from filing bankruptcy right away. As the option of last resort, they may want to wait as long as possible before filing.

But one thing that often slows them down in the filing process is trying to list all of their creditors and exactly how much they owe for fear that they’ll miss a debt and it  won’t be included in their bankruptcy. The good news is that we run a credit report that collects information from all three credit bureaus (this is included in the cost of your bankruptcy). That report should have the most up to date balance of your accounts.

In any event, knowing the exact balance of what you to your creditors won’t keep your bankruptcy from being completed and your debts from being eliminated. Although there are limits to how much you can discharge in chapter 13 bankruptcy, there are no limits in chapter 7. For most people, the amount they owe is used for statistical purposes only. If any of your creditors have to be paid (in a chapter 13 or in an “asset case” in chapter 7), the creditors will have to file a proof of claim which will include an amount that you owe.

One of the reasons to hire a bankruptcy attorney is to guide you through the process and make sure that your bankruptcy petition is complete. That is the best way to ensure an uneventful filing. In most cases, you’ll find that the only thing that happens after your case is filed is the meeting of creditors. For most of my clients, it’s just a matter of waiting for the passage of time for the court to enter their discharge order which shows they are no longer legally liable for their debts.

Schedule A Free Consultation With A Bankruptcy Attorney In Denver

If you have questions about the bankruptcy process and what you need to do and what information you’ll have to provide, we hope you’ll come in for a free, no-obligation consultation with an experienced bankruptcy attorney. You’ll leave your consultation with a better understanding of the bankruptcy process and will be able to decide if it is a good option for you to get your personal finances under control.

You can schedule your free consultation by calling 303.331.3403 or by using our online scheduling system.

An experienced Denver bankruptcy attorney can make sure your bank accounts are protected.

One of the reasons that you should hire an attorney when you file bankruptcy is that an experienced lawyer can guide you through the process safely. One of the trademarks of a good attorney is her ability to explain the process to you in a way that you understand and her willingness to answer any questions you have.

Unfortunately, sometimes I can fall short of thoroughly explaining things to my client. During the intake process with a new client, we talk about the timing of filing their petition. Timing can be crucial for some of my clients, so it is a big element in preparing for filing. One reason is that the bankruptcy trustee in Colorado can force a filer to turn over any wages he has earned but not been paid for on the day his petition is filed. Another factor relating to timing is that the bankruptcy trustee in Colorado can  force a filer to turn over any money that he has on hand the day his petition is filed, whether it is in his bank account, his mattress, or his wallet. Keep in mind that in the case of wages, in Colorado the trustee can only force you to turn over 25% of your take home pay, whether it has been earned but unpaid or deposited in your bank account. If the money in your bank account is from another source, the trustee may be able to take more of it.

I had thought this was a thorough explanation of potential issues related to timing until last week during an appointment with a client. Her petition was ready to file. I had actually gone to her office so she could sign the petition. At the moment she was without a car and using the bus system. It was going to big a much bigger hassle for her to catch a bus to my office than for me to drive to hers. After she signed the petition, she asked, “So when is the trustee going to take money out of my account?”

I’ll admit that I was surprised by the question, but I realized it was my fault for not explaining things well enough.

While the bankruptcy trustee can force you to turn over money that is in your bank account on the day you file or any earned but unpaid wages, she won’t have access to your bank account to take that money. And you also won’t have to pay that money on the day you file. Typically, you won’t find out whether you’ll have to pay anything to the trustee until your meeting of creditors, which takes place about a month after we file your petition. I can certainly give you a good idea whether I think the trustee will want that money, but if it’s a relatively small amount, the trustee may not even bother with it. As a a general rule, though, if there is more than a $1,000 for him to take, he probably will. Under $500 and you’re probably safe. Between $500 and $1,000 is a gray area and varies by trustee in Colorado.

If there is enough money for him to force you to turn over, you’ll have the chance to pay that over time. At the meeting of creditors, he’ll let us know what he thinks he’s entitled to. If there’s no dispute, we’ll come to agreement on when you’ll have to start paying.

Schedule A Free Consultation With A Denver, Colorado Bankruptcy Attorney

If you have questions about the bankruptcy process, we hope you’ll come in for a free consultation with an attorney. You can schedule a consultation by calling 303.331.3403 or by using our online scheduling system.

One of things I have learned as a lawyer is that there is a great deal of legal misinformation out there. The Internet has done nothing but help to amplify these legal myths. As a bankruptcy lawyer, I frequently meet people whose notions of bankruptcy are completely contrary to the facts.

One of those notions is that bankruptcy is used by people who are trying to defraud their creditors after irresponsibly running up their debt without any intention of repaying them. While I’m sure that such people exist, I can’t recall that being the case for any of my clients.

As a bankruptcy attorney, I believe it is one of my responsibilities to clear up some of the myths out there about people who file. I can’t think of a better example than a woman who came to me several months after her husband died. He passed after a brief but painful bout with cancer. As you can imagine, his battle resulted in a great deal of medical bills. After he passed, those providers still expected to be paid, and they went after my client without any regard for giving her a chance to grieve his passing. Unfortunately, my client had also left many of the household financial duties to her husband. After his passing, she discovered they owed back taxes and had some credit card debt.

When she came to me, she was unsure what her options were. Since she was retired, her only source of income was social security. I explained to her that her creditors and husband’s medical providers wouldn’t be able to take any of her social security income. For her, bankruptcy would primarily provide her psychological relief. It would stop the phone calls, but wouldn’t have any effect on her personal finances since she wasn’t paying these debts anyway.

Ultimately. she decided to file chapter 7 bankruptcy. For her, she needed the relief from the debt collection efforts that bankruptcy provides. The second we filed her petition, those phone calls had to stop. That was what she needed. To feel the pressure of the debt collectors on top of the feelings of grief for the loss of her husband were too much.

If you have questions about whether bankruptcy may help your financial circumstances, we hope you’ll come in for a free, no-obligation consultation with one of the attorneys at Colorado Bankruptcy Law Group, LLC. During the consultation you’ll get the chance to ask all the questions you have about the bankruptcy process and leave with a better idea of whether it might be a good option for you.

You can schedule your appointment by calling 303.331.3403 or by using our online appointment scheduling system.

Several times a week, I’ll get calls from people who have gotten a summons for a lawsuit from a creditor. Often, they’re surprised. They’ve been making payments and didn’t expect the creditor to sue them. When I ask them if they’ve been making the full monthly payment, more often than not they haven’t been.

Keeping creditors from suing you by paying them less than what you owe is a common misconception. Right up there with “possession is 9/10th of the law”.

The fact is, if you pay a creditor less than what is required under your contract, you’re going to be in default under the terms of the contract. What I’ve noticed is that this issue frequently comes up in paying medical bills. People think that a hospital can’t sue them if they’re paying something. At some point before or after you were admitted to the hospital or emergency room, you agreed to pay for their services. Somewhere in that agreement are the terms under which you agreed to pay. You shouldn’t be surprised to learn that they don’t want to get paid for a $10,000 emergency appendectomy at $10 a month.

You can’t modify that contract by simply making smaller payments. The creditor has to agree to that smaller payment. The creditor is also not under any obligation to change the terms of your contract. If it decides that it wants to sue you for defaulting under the contract, it can. There are only two ways to stop their collection: paying the debt or filing bankruptcy. If they get judgment, they’ll start taking money out of your paycheck (25% of your take home pay).

Bankruptcy will stop their lawsuit and their garnishment. Chapter 7 bankruptcy will eliminate your obligation to repay all dischargeable debts. Chapter 13 bankruptcy may require you to pay back a certain amount of what you owe. Anything left over will be eliminated.

Talk To A Denver Bankruptcy Lawyer About Stopping Collectors

If you’re having problems paying your hospital bills and other debts, we hope you’ll come in for a free consultation. Bankruptcy may be an option and will allow you to get a fresh, financial start. You can meet with an experienced bankruptcy lawyer by calling 303.331.343 or by using our online scheduling system.

Paying Credit Card Bills Before You File Bankruptcy

Not all of the people who come in for a consultation are behind on their credit card bills. Many are current on all of their bills but have seen the writing on the wall and know that it’s just a matter of time before they’ll have to stop paying them. One of the last questions they ask at the consultation is whether they should stop paying their credit card bills.

First, you should know that you don’t have to be late on your bills to file bankruptcy. Second, when you stop paying your credit card bills can depend on when you plan on filing bankruptcy. When you stop making payments it won’t be long before your creditors start trying to get hold of you. They’ll call and send letters. Eventually, they’ll take legal actions and file a lawsuit. When that happens, the clock starts ticking. Personally, I would like to see someone file his bankruptcy petition before the creditor gets judgment. If the creditor gets judgment, it will be able to garnish your wages and bank account. If you own a home, it can place a lien on it. Of course, you can also file bankruptcy after someone gets judgment. If you need time to file your bankruptcy, you can file an answer to your creditor’s lawsuit, which will buy you more time. Remember, though, that creditors will probably take at least 60 to 90 days from the date of your last regular payment before they file a lawsuit. If you’re going to file bankruptcy in that time, you should be safe from lawsuits.

One additional question to also ask yourself is whether it makes any sense to pay debts that you’re going to eliminate in the next month or two. You can probably use that money for other things, like your mortgage payment, rent, or other living expenses.

Talk To A Colorado Bankruptcy Attorney About How To Eliminate Credit Card Bills

If you’re feeling overwhelmed by making the minimum monthly payments to your credit cards, personal bankruptcy may be the best option to get a new financial start. We hope you’ll come in for a free consultation with an experienced bankruptcy lawyer to learn how bankruptcy can help you. You can call 303.331.3403 to schedule an appointment or use our online scheduling system.

Student Loans And Bankruptcy

Many of my clients are people who are working on their college degree or are parents of college students. They are concerned about how bankruptcy will affect their ability to get any student loans after they file bankruptcy.

As you may know from your research, student loans are generally not dischargeable in bankruptcy. Meaning that you usually can’t rid of them.

The flip side of that is that Section 525(c)(1) of the Bankruptcy Code prohibits a lender of federally guaranteed student loans from denying a loan because someone has filed bankruptcy. Section 525(c)(1) states that a

governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.

This is good news for anyone considering bankruptcy and is worried about how it will affect their education. Bankruptcy is designed to provide a fresh start, not wreck your financial future. By allowing you to qualify for student loans for higher education, bankruptcy could be the first step you need to get on the road to financial recovery.

Come In To Learn How Bankruptcy Will Affect Your Student Loans

If you have questions about whether you can continue to get student loans if you file bankruptcy, or if your student loans can be discharged, we hope you’ll come in for a free consultation with an experienced bankruptcy lawyer. You can set up an appointment by calling 303.331.3403 or by using our online scheduling system.

What Does It Mean When The Bankruptcy Trustee Issues A Notice Of Possible Dividends In My Bankruptcy Case?

In broad terms, there are two kinds of Chapter 7 bankruptcy cases: ” no asset” and “asset”.  A no asset case is when a debtor owns no property that is not covered by Colorado bankruptcy exemptions. In other words, all of the debtor’s property is protected and the bankruptcy trustee can’t take any of his property to give to his creditors. Most Chapter 7 bankruptcy cases are no asset cases.

Asset cases arise when a debtor owns property that is not protected by Colorado bankruptcy exemptions. For example, in Colorado one of the most common non-exempt (unprotected) assets is a debtor’s tax returns. If the trustee forces you to turn over your tax return, he will open an asset case. At that point he will send all of the creditors that you listed in your petition a Notice of Possible Dividends to let them know that there are assets available for distribution. If any creditor wants a portion of this distribution, it will have to file a Proof of Claim. If it doesn’t file a Proof of Claim, it won’t receive any money. You should also know that if you forget to list a creditor when you have an asset case, that creditor’s debt may no be discharged or eliminated when the court closes your case.

Our job is to make sure that you understand before you file whether or not you will have to pay anything to the bankruptcy trustee when you file your petition. We can make sure that there aren’t any surprises down the road and give you advice on how to avoid having to pay anything when you file.

Schedule A Free Bankruptcy Consultation With A Colorado Bankruptcy Lawyer To See If Your Property Is Protected

If you have any questions about whether your creditors will get any of your assets when you file bankruptcy, we hope you’ll come in for a free, no-obligation bankruptcy consultation. One of our primary objectives is to make sure you make it through the bankruptcy process with all of your assets and without having to pay the trustee or your creditors. You can schedule your consultation with an experienced bankruptcy lawyer by using our online scheduling system or by calling 303.331.3403.

What Happens To Your Security Clearance If I File Bankruptcy?

From time to time service members and defense contractors come into my office for a consultation. Besides wanting to know how bankruptcy will affect their financial lives, many of them also want to know if filing bankruptcy will cause them to lose their security clearance. As a veteran, I can understand their apprehension about how bankruptcy will affect their military career. The last thing they want is to have it affect their promotion.

If you’ve spent enough time around lawyers, you already know the answer: it depends.

You May Be Able To Keep Your Security Clearance If You File Bankruptcy

Filing bankruptcy does not automatically mean that you’ll lose your security clearance.

According to the United States Air Force Academy’s Legal Office,

The status of your security clearance can be affected, but it is not automatic. The outcome depends on the circumstances that led up to the bankruptcy and a number of other factors, such as your job performance and relationship with your chain of command. The security section will weigh whether the bankruptcy was caused primarily by an unexpected event, such as medical bills following a serious accident, or by financial irresponsibility. The security section may also consider the recommendations and comments of your chain of command and co-workers. This is an issue that can be argued both ways, so as a practical matter your security clearance probably should not be a significant factor in making your decision about whether to file bankruptcy. The amount of your unpaid debts, by itself, may jeopardize your clearance, even if you don’t file bankruptcy. In that sense, not filing for bankruptcy may make you more of a security risk due to the size of your outstanding debts. By the same token, using a government-approved means of dealing with your debts may actually be viewed as an indication of financial responsibility. Eliminating your debts through bankruptcy may make you less of a security risk. There is no hard and fast answer here, with one exception: it never hurts to have a good reputation with your co-workers and your chain of command.

As I advise my clients, whether they’re worried about how bankruptcy may affect their employment or their security clearance, the best course is to be proactive and disclose that they’ve filed bankruptcy. That way they can’t be accused of trying to hide information that might be considered important.

Come In For A Free Consultation To Talk About How Bankruptcy May Affect Your Security Clearance

If you have any questions about how bankruptcy may affect you and what your rights are when you file, we hope you’ll come in for a free, no-obligation consultation with an experienced Denver bankruptcy lawyer. You can schedule an appointment by using our online scheduling system or by calling 303.331.3403.