Chapter 13 Bankruptcy Overview
Chapter 13 Bankruptcy in Colorado is essentially a repayment plan supervised by the United States Bankruptcy Court. These payments can range from 36 months to 60 months and generally do not pay the creditors in full (i.e., you and your family can save a lot of money!). When you file your Chapter 13 Bankruptcy, you make payments to a Colorado Chapter 13 Trustee and the Trustee, for a fee, distributes the money to certain creditors in accordance with Colorado Bankruptcy Laws and the Chapter 13 Plan that was created by your attorney and approved by the court. This generic description is true whether you are filing Chapter 13 Bankruptcy in Colorado Springs or in the Denver Metro area.
Chapter 13 Bankruptcy affords you a chance to, among other things, catch up the mortgage or car payment, strip off a second (or third) mortgage lien off of your real estate, or even keep some property that you otherwise would have lost in a Chapter 7 Bankruptcy. Obviously, there are various reasons why a person files a Chapter 13 Bankruptcy and the attorneys at Wagner Law Office, P.C. will determine whether you need to file a Chapter 13 Bankruptcy and what your payment terms would likely be.
Process for Filing a Chapter 13 Bankruptcy in Colorado
So, what is the process for filing a Chapter 13 Bankruptcy? Because the Chapter 13 Bankruptcy process in Colorado is quite complex, the first step is to come in for your FREE consultation at Wagner Law Office, P.C. in order to find out whether or not a Chapter 13 Bankruptcy is right for you. Then, depending upon the circumstances in your case, you may have additional, monthly meetings with one of our experienced bankruptcy attorneys to strategize your Chapter 13 filing or we may prepare to immediately file your case. Whether you are filing for Chapter 13 Bankruptcy in Colorado Springs or in the Denver Metro area, our attorneys will explain in detail Colorado Bankruptcy Laws and how they relate to your particular situation. We will review numerous, required documents at our office and will sign them under penalty of perjury before they are filed with the court.
Once you have filed, the United States Bankruptcy Court will assign you a case number and will give you a hearing date, (also known as the “Meeting of Creditors”), where you will testify under oath before an attorney for the Trustee. By that hearing date, you should already know which party is objecting to the payment plan you are proposing.
If there are no objections filed in your case prior to the hearing date, then your payment plan will likely be “confirmed” by the court very soon thereafter and, so long as you follow through with what you promised you would do, (i.e., you make your monthly payments to the Trustee), you will receive a discharge of most of your debts at the end of your payment plan.
If there are objections filed in your case prior to the hearing date, (unfortunately, there will be objections filed in most cases), then our job is not over. Our office will need to address the objections that were filed and try to resolve them. These efforts can be adversarial and time consuming depending upon the objections filed. There will be a subsequent, court hearing called a Confirmation Hearing where your attorney will appear before the Judge and will inform the court as to the status of the outstanding objections. The Judge will enter an Order which could, among other things, (a) Dismiss your case, (b) Continue the hearing date so that the attorney can convince the objecting parties to withdraw their objections or, (c) Deny your Chapter 13 Plan and give your attorney a deadline for the filing of an Amended Chapter 13 Plan.
When the creditor’s objections are finally resolved, the court will “confirm” your Chapter 13 Plan which means the plan your proposed is now a court order. You agree to make your payments and the creditors agree to be bound by the terms and conditions of the Chapter 13 Plan. When your plan payments are completed as agreed to, you will receive a discharge of the balance of your remaining debts. Many times, if your case is strategized properly, your unsecured debts, (credit cards, medical bills, etc.), do not receive much money in a Chapter 13 Bankruptcy.
Just like a Chapter 7 Bankruptcy, there are some debts that you will still owe after your discharge. These can include student loans, some tax obligations, child support obligations but one of our attorneys will advise you as to your particular circumstance prior to filing your case. Chapter 13 Bankruptcy Lawyers in Colorado must be well-versed in these matters so that you are able to make good decisions through this difficult process. The knowledgeable and affordable bankruptcy attorneys at Wagner Law Office, P.C. will get you and your family to a better place in life.
Take action now to begin the fresh start you deserve by calling us today at 303-996-0149 or by filling out our online EASY CONTACT FORM for a free case evaluation with an experienced bankruptcy attorney at Wagner Law Office.