Colorado Chapter 7 and Chapter 13 Bankruptcy Resources
Bankruptcy is your legal right to debt relief. Bankruptcy can wipe out certain debts forever and can give you time to repay debts that bankruptcy cannot avoid.
When you file bankruptcy, you will receive the benefit of an automatic stay. This means that:
- harassing phone calls from creditors will stop
- wage garnishments will stop
- most lawsuits and judgments against you are halted
- all foreclosure proceedings and auto repossessions are stopped
Finally, you will keep much of your personal property after bankruptcy.
The are two main types of personal bankruptcies – Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is a relatively short process of three to five months where you keep exempt property and discharge your unsecured debts (those are debts not attached to specific property, such as a mortgage). In Colorado the exemptions, or the property you keep, are fairly generous. A bankruptcy lawyer can help you plan before filing to make sure you keep as much of your property as possible. At the end of the process, many types of remaining debt, including credit card debt and medical expenses, will be wiped out. To qualify for a Chapter 7 bankruptcy, you must earn less than the median income set by the federal government.
Chapter 13 bankruptcy is a process which takes three to five years and is for people who make more than the median income or have non-exempt assets they wish to keep. In Chapter 13, you are allowed to keep all of your property, but your disposable income over the next three to five years will go to pay your creditors. At the end of the three to five years, your unsecured debts will be wiped out. Additionally, you can use the repayment period to catch up on debts you have fallen behind on, such as back taxes, mortgage payments and auto loans. Wink & Wink can assist you in developing a repayment plan that will be accepted by the Colorado Bankruptcy Court.
Contact Wink & Wink to schedule a free consultation with a Bankruptcy Lawyer. Begin your fresh start today.