Denver Bankruptcy Lawyer
Living with overwhelming debt can be terrifying. Many individuals who find themselves financial trouble have no idea how they will pay what they owe and still make ends meet.
When your debt feels insurmountable, filing for bankruptcy with help from a skilled attorney may be the solution. These federal cases provide individuals, married couples, and businesses the opportunity for a fresh financial start. If you think bankruptcy may be your best option, a Denver bankruptcy lawyer could provide you with the appropriate legal guidance and help you pursue a positive outcome.
Understanding Bankruptcy in Denver
During bankruptcy, the person filing the case—known as the debtor—must submit a petition that lists all their assets and property as well as all their debts. If the debtor completes the bankruptcy successfully, most of their unsecured debts will be forgiven. However, some types of obligations, like outstanding child support payments or student loan payments, cannot be forgiven.
Each kind of bankruptcy has its own income and property requirements. Depending on the case, a debtor may be required to sell assets or make monthly payments toward their debts. A Denver bankruptcy lawyer could offer further clarification about how an individual debtor’s filing may proceed.
Preparing for a Bankruptcy
Filing for bankruptcy is not as simple as submitting a petition at the courthouse. The petition itself, as well as its supporting documentation, often span hundreds of pages and require complex calculations to prove that a person is eligible to file a certain type of case. Keeping track of these complex calculations is just one reason why getting in touch with a bankruptcy lawyer in Denver may be helpful.
Debtors may have to submit several years of tax returns and months of paycheck stubs and bank statements—as well as complete a debt counseling course—just to avoid a dismissal. Once the debtor completes the initial petition, they would have to attend a meeting of creditors.
If the debtor filed a Chapter 13 case, they might need to revise their payment plan several times if their bills or financial circumstances change. If any of their creditors object to the bankruptcy, the debtor may also need to defend that case simultaneously.
Chapter 7 Bankruptcies
Most bankruptcies that individuals or couples file fall under Chapter 7 of the bankruptcy code. These cases have an income limit based on the debtor’s family size and generally cannot be used by high-income or high-asset individuals.
During a Chapter 7 bankruptcy, the trustee in the case sells all the debtor’s non-exempt assets and use those proceeds to pay off creditors. If there are no non-exempt assets, the individual’s debt may be wiped out entirely without paying the creditors.
Chapter 13 Bankruptcies
People who are not eligible for a Chapter 7 bankruptcy often file under Chapter 13. Unlike Chapter 7, Chapter 13 debtors are allowed to keep their property while making monthly payments toward their debts. If they complete the case within three to five years, any remaining unpaid debt would be forgiven.
Chapter 13 bankruptcies are a common way for people facing foreclosure to save their home. These cases stop a foreclosure case and allow the debtor to make up missed payments over time.
Contact a Denver Bankruptcy Attorney
Bankruptcy cases are complicated and can be difficult for even the most knowledgeable debtors to complete without help. A Denver bankruptcy lawyer could review your financial history for the past several years to help you determine your eligibility for bankruptcy and the type of case you can file.
If your financial situation feels hopeless, a qualified bankruptcy attorney could help you regain control. Schedule an appointment today to learn more about restructuring your debt and taking back your life. The Amy G Law Firm co-counsels bankruptcy cases.