Colorado Bankruptcy Lawyers
Bankruptcy Provides Debt-Relief Options
Colorado bankruptcy laws are designed to help you get out from under your debt and get a second chance to succeed. Whether you're struggling with mortgage debt, credit card debt, or medical debt, bankruptcy laws may help you move on.
Don't spend another day worrying how you'll deal with your financial crisis. Talk to a Colorado bankruptcy attorney today and learn your options.
Simply fill out the free case review form below or call 877-833-2410 to arrange a free, no-obligation consultation with an attorney near you.
Chapter 7 Bankruptcy Laws in Colorado
Chapter 7 bankruptcy, also called "straight bankruptcy", is designed to wipe out credit card debts, medical bills and other unsecured debts—those that aren't tied to a specific item.
By far the most common type of personal bankruptcy in Colorado, Chapter 7 bankruptcy eliminates debts through a process called liquidation. In liquidation, the bankruptcy court may sell certain assets in order to pay back some creditors, and forgive any remaining debts.
However, most Chapter 7 cases in Colorado do not involve any liquidation of assets. This is because Colorado laws allow for some exemptions—assets that are protected from creditors. These exemptions include:
- Up to $60,000 for primary residence; Up to $90,000 if homeowner, spouse or live-in dependent is elderly or disabled.
- Up to 75% of disposable earnings
- Up to $5,000 of equity in all vehicles; Up to $10,000 if debtor, spouse or dependent is elderly or disabled.
- Up to $1,500 in clothing; $2,000 in jewelry; and $3,000 in household goods.
In these no-asset Chapter 7 cases, bankruptcy filers may be allowed to walk away from their debts without having to surrender any property.
Chapter 7 bankruptcy is not available to all bankruptcy filers. New bankruptcy laws introduced in 2005 require anyone looking to file Chapter 7 bankruptcy to qualify under a "means test". This involves comparing your household income to Colorado's median income for your household size.
The good news is that many people who truly need Chapter 7 bankruptcy relief will likely qualify for this types of bankruptcy. Ask a Colorado bankruptcy attorney if you are likely to pass the Chapter 7 means test.
Chapter 13 Bankruptcy in Colorado
The other main type of personal bankruptcy available is Chapter 13 bankruptcy. Also known as wage-earner's bankruptcy, Chapter 13 is designed to create a single, manageable payment plan to catch up on debts.
Chapter 13 may also help those facing foreclosure or repossession pay back past-due amounts while maintaining control of their property.
In a Chapter 13 plan, you'll make a single plan to the bankruptcy court, which will then be spread to creditors. Secured debts (such as mortgages) receive priority, while unsecured debts may be reduced or completely eliminated, depending on your debts and income.
Bankruptcy Protections: The Automatic Stay
Regardless of which type of bankruptcy you decide to file, you may benefit from the powerful automatic stay: a special court order in bankruptcy that silences creditors.
The automatic stay goes into effect the moment you file bankruptcy, and may last throughout your entire case. This court order halts collection calls, foreclosure, repossession and debt lawsuits. It can gives you the breathing room to focus on your case and stop worrying.
Get Bankruptcy Help with a Colorado Attorney
Get to know your rights when it comes to fighting debt. Speak with a Colorado bankruptcy attorney today about the next steps to take.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.