Bankruptcy In Colorado
The uncertain economic climate has left many consumers with mounting debt and financial difficulties. Bankruptcy can be a viable solution to offer you a clean slate and an opportunity for a new financial beginning. Once a bankruptcy petition is filed, creditors are prohibited from attempting to collect on debts. Home foreclosure proceedings and wage or bank account garnishments are immediately suspended. Contact a bankruptcy lawyer in your Colorado city or county for assistance in understanding your bankruptcy options.
Benefits Of A Colorado Bankruptcy Lawyer
Bankruptcy laws vary from state to state. The most common types of consumer bankruptcy under Colorado bankruptcy law are:
- Chapter 7 - Liquidation
- Chapter 13 – Reorganization
Under a Chapter 7 bankruptcy, a debtor is required to liquidate non-exempt assets, which are sold by a Bankruptcy Trustee. The proceeds are used to pay creditors, which typically amounts to a fraction of the original debt. Under Colorado law, certain assets are exempt from liquidation, such as a home, automobile and most personal property. Chapter 7 bankruptcy is ideal for a debtor with few assets. A Chapter 7 bankruptcy provides a clean slate, free from debts other than recent delinquent taxes and some types of student loans.
A Chapter 13 bankruptcy requires a debtor to formulate a payment plan through which to pay creditors over time. All debts must be included in the payment plan, which is then approved by the Bankruptcy Court. Monthly payments are made to the Bankruptcy Trustee and disbursed among creditors. Time limits for debt repayment typically range from three to five years. This type of bankruptcy allows a debtor to retain assets including a home, automobile, bank accounts and personal property. Chapter 13 bankruptcy is designed for a debtor with a steady source of income with which to pay creditors.
Your Colorado bankruptcy lawyer can help you decide which type of bankruptcy is best suited to resolve your financial difficulties. Your lawyer will assist you with preparation of the required documents, file the bankruptcy petition, and represent you in Bankruptcy Court proceedings.
Connect With A Colorado Bankruptcy Lawyer Now
ColoradoLawyerLocator.com is an excellent resource to locate Colorado bankruptcy lawyers. Our service is FREE and easy to use. Simply submit your information in our online form. You will be connected with a bankruptcy lawyer in your city or county. Use ColoradoLawyerLocator.com to connect with a Colorado bankruptcy lawyer today!