Bankruptcy Basics from Denver Area Debt Settlement Attorneys

The law firm of Wink & Wink represents consumers and small business owners who live in Denver, Aurora, Littleton, Arvada, Lakewood, and more, in Chapter 7 bankruptcy and Chapter 13 bankruptcy. We handle individual cases and cases for married couples filing jointly.

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What is Bankruptcy?

Bankruptcy is a legal process to get out of certain kinds of debt that can cost you based on your ability to repay (i.e. assets or income). The majority of people who file bankruptcy keep everything they own and pay little to nothing to the creditors in the process. Determining whether you should file bankruptcy, and, if so, which chapter of bankruptcy is right for you, depends on a number of factors: household income, assets, and the type and amount of your debt.

While bankruptcy will show up on your credit history for 10 years, it clears your debt and enables you to start rebuilding your credit score very quickly. The negative impact of a bankruptcy doesn’t last the full 10 years. It is possible to achieve a 700+ credit score within 24 months and be eligible for a mortgage within two to three years of filing.

There is no shame in filing for bankruptcy! While some people want to avoid the stigma of bankruptcy, our debt settlement lawyers encourage everyone to focus on the most cost-effective debt relief option. In many cases, bankruptcy is by far the most cost-effective form of debt relief. In these situations, bankruptcy is also the most efficient means of rebuilding your credit.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also called a “straight” bankruptcy, can provide you with relief from your unsecured debts. Chapter 7 can help you reset your finances if you’re behind on bills and can no longer afford monthly payments and living costs. When you file for Chapter 7 bankruptcy in Denver, the court will place a temporary stay on current debts to stop creditors from collecting from you, garnishing your wages, repossessing or foreclosing on your property, turning off your utilities, or evicting you.

Learn more about eligibility and how filing works.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is sometimes called a “reorganization” bankruptcy. This type of bankruptcy requires you to pay back a portion of your debt, but allows you to discharge the rest of your unsecured debts, like credit cards and medical bills. When you file for Chapter 13 bankruptcy, your property is not sold, especially if you successfully complete a court-mandated repayment plan. The amount you’ll need to repay depends on your income, assets, and total debts.

Learn more about qualifying for Chapter 13 bankruptcy.

What is Small Business Bankruptcy?

According to the U.S. Small Business Administration, between 2005 and 2017, only about one-fifth of new businesses survived more than one year. Small business bankruptcy helps your business eliminate or pay back debt through liquidation or reorganization. Depending on how you’ve legally structured your business, you can file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Learn more about how to file for small business bankruptcy.

If you live in the Denver area and need help determining how to get debt settlement, contact Mike and Gigi Wink at Wink & Wink, with offices in Broomfield and Denver.