Filing for bankruptcy is a big decision. Knowing which type of bankruptcy is right for you can take time and effort. Our Colorado bankruptcy team will explore the different types of bankruptcies and help you decide which is suitable for your situation. We will also discuss the benefits and drawbacks of each type of bankruptcy so you can make an informed decision.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common type of bankruptcy and is designed for individuals who have limited income and few assets. During a Chapter 7 bankruptcy, most of your unsecured debts, like credit card debt and medical bills, are eliminated. You may be required to surrender some nonexempt property in order to pay off creditors, but this is usually minimal. Chapter 7 bankruptcy requires you to complete some paperwork and attend a court hearing.
In order to file for Chapter 7 bankruptcy, you must first complete a means test to determine whether or not you qualify. The means test will evaluate your income, assets, and debts in order to determine if you are eligible for this type of bankruptcy. If you do qualify, then you must complete the necessary paperwork and attend a court hearing.
Chapter 13 Bankruptcy
If you have a steady income, Chapter 13 bankruptcy may be the right choice for you. This type of bankruptcy allows you to reorganize your debt into an affordable repayment plan and eliminates some of your unsecured debts. You must make monthly payments for three to five years before any remaining balances are discharged. Additionally, you will likely be able to keep your property.
In order to qualify for Chapter 13 bankruptcy, you must have a steady income and be able to make the required monthly payments. You are also required to complete some paperwork and attend a court hearing. This type of bankruptcy is more complex than Chapter 7 bankruptcy and requires more paperwork and financial documents.
What If I Am Facing Foreclosure?
If you are facing foreclosure, bankruptcy may be an option for you. Depending on the type of bankruptcy, filing for bankruptcy can temporarily stop a foreclosure sale and allow you to stay in your home while you work out a repayment plan with creditors. We will discuss your options with you so that you can make an informed decision about which route is best for your situation.
No matter which type of bankruptcy or debt relief option you choose, our Colorado bankruptcy team is here to help you make the best decision for your situation. We will walk you through each step of the process and ensure that all paperwork is filed correctly and on time. Contact us today to get started.
Ready to Take the Next Step?
If you're considering taking the next step toward financial freedom, it is essential that you speak to an experienced Colorado bankruptcy attorney to discuss your options and find out which type of bankruptcy is right for you. Our knowledgeable team can help guide you through the entire process, from filing paperwork to attending court hearings. Contact us today for a free consultation. We look forward to hearing from you!
If you need help filing for bankruptcy, we can help. Don't hesitate to contact us today through our website or give us a call at (303) 536-5124 to schedule a consultation.