Chapter 7 bankruptcy is known as “straight” bankruptcy or “liquidation” bankruptcy. It requires you to give up property which is not “exempt” under the law, so the property can be sold to pay creditors. Generally, people who file Chapter 7 keep all of their belongings except property which is very valuable or which has been used as collateral for a loan.
Chapter 13 bankruptcy is a type of “reorganization” used by people to pay all or a portion of their debts over a period of years. In a Chapter 13 bankruptcy you file a “plan” that shows how you will pay off some of your past-due and current debts over three to five years. Importantly, a Chapter 13 bankruptcy will allow you to keep valuable property, such as your home or car, that might otherwise be lost in a Chapter 7 bankruptcy.
To learn more about whether or not Chapter 7 bankruptcy or Chapter 13 bankruptcy is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule bankruptcy consultation at a time that is convenient for you.