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Colorado Bankruptcy Process
Bankruptcy is a touchy subject for many people, making it hard to discuss and contemplate. The truth is, the majority of people who file for bankruptcy do so because they have had a life changing experience such as divorce, the loss of a job, or a serious illness in the family. Our firm specializes in consumer bankruptcy actions, helping out individuals and small business owners who are looking for a fresh start.
Bankruptcy law is one of the most confusing areas of the law, due to recent changes in the bankruptcy code and the myths that exist about what bankruptcy is, who can file, and the process that it entails. This site is meant to give you a general idea of the bankruptcy code and debunk the myths that surround bankruptcy law. If you would like more information on the bankruptcy process, keep reading. I also recommend reading an article from MSN Money, which can be viewed if you click here.
If you would like an answer to a specific question, or are wondering about the law in Colorado, keep reading, or call us today for a free initial consultation: 877.313.6927 or 303.500.5860
For individuals, there are two chapters under the US Bankruptcy Code that apply to you, chapter 7 and chapter 13.
Click Here For More Information About Chapter 7.
Click Here For More Information About Chapter 13.
2005 Bankruptcy Act Credit Counseling
The 2005 Bankruptcy Act requires all individual who file bankruptcy to undergo credit counseling within six months before filing for bankruptcy. In addition, you will have to complete a financial management instructional course after you file for bankruptcy.
2005 Bankruptcy Act Means Test
Under the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify for Chapter 7 or if you have to file for Chapter 13. The courts will look at the your average income for the 6 months before you file and compare it to the median income of Colorado. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you have file Chapter 13.
The remaining portion of the means test examines how much of your post expenses income can be devoted to your debts. The formula is complex, but we will help you figure out what options are available to you.
Gathering Paperwork
To begin the bankruptcy process you must gather some paperwork for us to help you through the process. Here is what you will need to do:
- Itemize your current income sources
- Disclose all major financial transactions for the last two years
- Determine what your monthly living expenses are
- Determine all of your debts
- Make a list of all of your property, including personal property
- Obtain a copy of your tax returns for the last two years
- Obtain the deeds to any real estate you own
- Obtain your car title(s)
- Obtain the documents for any loans and/or credit cards you may have.
Filing Bankruptcy
Once you have gathered this information, we will determine which property you own is exempt from seizure based on the Colorado exemptions.
The cost for filing a Chapter 7 bankruptcy is $299. This fee may not be waived but you may be able to pay it in installments. The fee of $274 for a Chapter 13 bankruptcy can not be waived. These fees are in addition to the fees that our law firm will charge for our services, so contact us to get a quote on our rates.