Looking for a Denver, Colorado Chapter 13 bankruptcy attorney? You’ve come to the right place. We’ve helped hundreds of clients secure their financial future by guiding them through the Chapter 13 bankruptcy process. We’re confident that we can guide you safely through the Chapter 13 bankruptcy process as well.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a reorganization of your debts that allows you to pay what you can afford, instead of what your creditors are forcing you to pay.
What Are The Benefits Of Chapter 13 Bankruptcy In Colorado?
Besides allowing you to reorganize your debt into a more manageable plan, Chapter 13 bankruptcy has many other benefits. It can help you get caught up on your mortgage, get tax debt under control, and can even allow you to pay less than what you owe on your car loan in some cases. In some situations, it can eliminate judgment liens. Of course, it can also stop foreclosure. It can also reorganize debts that arise from a divorce.
How Long Does Chapter 13 Bankruptcy Last In Colorado?
The minimum length of time a Chapter 13 can be for is three years. The maximum a Chapter 13 can be for is five years.
The first factor that will determine how long your Chapter 13 bankruptcy plan will last is your income. If your household income is below the median income for your household size, your plan can be for three years. If your household income is over the median income for your household size, your plan must be for five years.
A five year plan can be reduced if all of your creditors will be paid 100% of what you owe them sooner than five years.
How Much Will I Have To Pay In A Chapter 13 Bankruptcy In Colorado?
Your Chapter 13 plan will typically be based on three factors: your income, your debt, and your assets. Each of these can affect how much you’ll have to pay. An experienced Chapter 13 attorney will ensure that you are paying the least amount possible.
When you come in for a free consultation, we’ll talk about your proposed plan payment. Keep in mind, though, it will just be an estimate. We won’t have enough information at that time to tell you exactly what that payment will be. If you decide to move forward, you’ll have a better idea what that payment will be before you file.
Do I Pay Any Interest To My Creditors In A Chapter 13 Bankruptcy In Colorado?
One of the benefits of a Chapter 13 is that most people don’t pay any interest on their unsecured debt. In the rare case, we have seen filers have to pay around 2% – 3% interest on unsecured debt. Those case usually involve filers with a significant amount of non-exempt assets. Those are assets they would lose in a Chapter 7 bankruptcy.
Even if a filer is paying 100% of their unsecured debt, the savings on interest will make a significant difference in eliminating the debt.
What Happens To My Home In Chapter 13 Bankruptcy In Colorado?
Your home is safe in Chapter 13. The bankruptcy court will not sell your home in Chapter 13. The only risk to your home in Chapter 13 is if you don’t pay your mortgage payments. As long as you keep making those payments, you’ll be able to keep your house.
All the bankruptcy court will care about is the value of your home and how much remains on the mortgage. The difference between those two numbers is called “equity”. If your equity is more than you could protect if you filed Chapter 7, your unsecured creditors will have to get at least as much as they would in a Chapter 7.
If you don’t pay that amount, then your case will be dismissed and you’ll lose the protection of the bankruptcy, but the bankruptcy court won’t take your home.
Do I Lose Any Assets In Chapter 13 Bankruptcy In Colorado?
You get to keep all of your assets in Chapter 13. But, just like your home, we have to see if you have any assets that are worth more than what you could protect in Chapter 7. If there are, that value is the minimum amount that has to be paid to your unsecured creditors. Just remember, there are other factors that can affect how much your plan payment will be.
Why Hire A Denver, Colorado Chapter 13 Bankruptcy Attorney?
Technically, you don’t have to hire an attorney to file bankruptcy. You can go through the process without one. Approximately 10% – 15% of people who file Chapter 7 file without a lawyer.
However, Chapter 13 bankruptcy is a whole other ball game. It is very technical, and I would never recommend someone file a Chapter 13 without a lawyer. There are too many potential landmines on the path to getting your Chapter 13 plan approved by the court. An experienced Chapter 13 bankruptcy attorney will make sure that the court approves your plan and that you are paying the minimum amount possible.
Talk To A Top-Rated Denver Colorado Chapter 13 Bankruptcy Attorney Today!
Come in for a free consultation with an experienced Denver, CO Chapter 13 bankruptcy attorney. We’ll thoroughly review your financial situation and give you an honest assessment of whether or not Chapter 13 would be a good option. You can schedule your free consultation by clicking here.