Bankruptcy in Boulder, CO

Does your debt feel overwhelming and impossible to overcome?

Owing more than you can handle can be daunting. Nonetheless, some advice and legal counsel can ease the burden. You may even secure a fresh start for your finances.

From understanding the differences between Chapter 7 and Chapter 13 bankruptcy, our articles will provide valuable insights. Join us in our in-depth exploration and discover how the right attorney can help you create a brighter future.

Types of Bankruptcy in Boulder, Colorado

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Boulder, CO to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11, or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Most bankruptcy cases from Boulder go through the U.S. Bankruptcy Court for the District of Colorado. However, you should consult your attorney to be certain.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Boulder  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

However, there are several reasons why someone may choose another type of bankruptcy over Chapter 7. First, it can be difficult for someone from Boulder to pass the means test. This step tests your income level and expenses against the state median. Making more than that amount can limit your options. Additionally, you may have options that do not involve liquidating your property.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

Chapter 11 is one of the most intricate and time-consuming bankruptcies to manage. There are comprehensive legal procedures and filings for the court system to approve. The financial documents alone a petitioner from Boulder must submit include the following:

• Schedule of assets and liabilities
• Statement of financial affairs
• Disclosure statement

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Boulder, CO after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

Qualifying for Chapter 13 in Boulder starts with meeting the income requirements. This step is vital since this chapter involves a repayment plan. For instance, your unsecured debts cannot exceed the established threshold. The U.S. Courts need proof that you or your organization do not have more than $2.75 million in these liabilities.

The Bankruptcy Process in Boulder, Colorado

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Boulder to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

The law allows you to keep certain assets and protect them from liquidation. For example, bankruptcy filings from Boulder choose between federal and state bankruptcy exemptions. Notable state options include up to $75,000 in equity in your primary residence in Boulder. Additionally, you can claim up to $7,500 in value for your motor vehicle. Your attorney will guide you toward the most advantageous option for your circumstances.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Boulder, Colorado Lawyer

Hiring a local bankruptcy lawyer in Boulder during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can be discharged or can’t be discharged. An experienced Colorado attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Boulder can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Colorado state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!