Chapter 7 Bankruptcy
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What is the Chapter 7 Bankruptcy Process in Colorado?
Bankruptcy is a legal process in which people can seek to get their debts discharged. Those debts must be so overwhelming that a person believes they cannot repay them. While it is a “last resort” option, bankruptcy should not be seen as a bad thing. Bankruptcy laws exist for the sole purpose of helping people start over, therefore, if you are in a position where you cannot repay your debts under any circumstances, you may have options.
Chapter 7 bankruptcy is the most comprehensive type of debt forgiveness, as most, if not all, of your debt can be discharged if you file successfully. Individuals, partnerships, and business entities can seek relief from unsecured debts such as credit card balances, auto loans, mortgage payments, etc. through chapter 7 bankruptcy.
To determine whether or not to grant you relief under chapter 7 of the US Bankruptcy Code, a judge and court trustee will examine your assets and liabilities. The bankruptcy trustee will then compile and sell your nonexempt assets to pay back creditors, meaning you may lose property in the bankruptcy process. However, if the court believes that you do not have enough assets to repay all your debts, you may get legally relieved of them and no longer be subjected to harassing creditors.
Whether it be Chapter 7 or Chapter 13, our experienced Colorado chapter 7 bankruptcy lawyers are committed to helping you navigate the complicated legal structure of the Bankruptcy Code and building yourself a brighter financial future. Please contact our firm online or at (888) 458-0991.
Chapter 7 Eligibility
Unfortunately, not everyone qualifies for chapter 7 bankruptcy. Although most petitioners are successful in their attempts to get debt relief, they must be eligible to file first and foremost.
With this in mind, you must satisfy the following requirements to qualify for chapter 7 bankruptcy:
- Your debts total more than half your annual income
- Your debt hinders your quality of life, such as your relationships and sleeping habits
- You have little to no disposable income
- Your monthly income is below Colorado’s average income level
- You received credit counseling from an approved agency within 180 days of filing
The factors above are evaluated in what is called the “means test.” The means test determines whether or not you are entitled to a Chapter 7 discharge by comparing your monthly income and expenses to the state’s average. The purpose of the means test is to ensure you are not abusing the powers afforded under chapter 7 of the US Bankruptcy Code.
Filing for Bankruptcy? We Can Help.
Worrying about foreclosure, wage garnishment, or repossession of your assets? Those endless debts and sleepless nights do not have to last forever, as the US Bankruptcy Code affords viable debt discharge or debt repayment options to eligible individuals. While many people perceive bankruptcy as a bad thing, we encourage you to view it as an opportunity to gain a fresh financial start.
Roughly 750,000 individuals filed for bankruptcy between March 2018 and March 2019, according to the US Courts, which demonstrates just how common this process is utilized. Thus, if you are experiencing debt in your business or personal life, bankruptcy may be a viable option to elevate the financial stresses of your life.
While the idea of filing for bankruptcy can be frightening, know that you are not alone. With the help of our Colorado chapter 7 bankruptcy lawyers, you can feel peace of mind knowing that we will help you navigate the process and provide the clarity and strategies required to help you move forward. Our mission is simple: Working to get your debts discharged. Thus, you can rest assured that we will invest the time, resources, and efforts needed to help you achieve just that.
Schedule your free consultation online or at (888) 458-0991 to speak with us about your situation. We are here for you!
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