Understanding Chapter 13 Bankruptcy Eligibility in Colorado
Debt can be a crushing burden that affects every aspect of your life. Fortunately, there are options available for those struggling with debt, such as Chapter 13 bankruptcy. If you live in Broomfield, Boulder, Denver, Littleton, or Louisville, Colorado and are considering filing for bankruptcy, it’s important to understand the process and determine whether you qualify. If you’re wondering, “Do I qualify for Chapter 13 in Colorado?” a bankruptcy attorney can help you assess your eligibility and guide you through the process.
The Law Office of Clark Daniel Dray has handled thousands of bankruptcy cases, both under Chapter 7 and Chapter 13 bankruptcies. Our Colorado bankruptcy attorney offers personalized bankruptcy and debt resolution services that will relieve you of your financial problems and help you get a fresh start. Our goal is to provide you with the information you need to make an informed decision about your financial future. Schedule a free consultation with us now!
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal process that allows individuals to reorganize their debt and make payments to creditors over a period of three to five years. It is also called as “wage earner’s plan”. It enables individuals with regular income to develop a plan to repay all or part of their debts.
What are the Eligibility Requirements for Chapter 13 Bankruptcy in Colorado?
To file for Chapter 13 bankruptcy in Colorado, you must meet certain eligibility requirements. These requirements include:
- Residency requirements: You must have lived in Colorado for at least 91 days before filing for bankruptcy.
- Debt limits: You must have unsecured debts of less than $419,275 and secured debts of less than $1,257,850. These amounts are adjusted periodically to account for inflation.
- Regular income: You must have a regular source of income that is sufficient to cover your living expenses and make payments to your creditors under the repayment plan.
- Priority debts: You must have paid all of your priority debts, such as taxes and child support, for the past four years. If you have outstanding priority debts, you must include them in your repayment plan.
- Credit counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved agency. The course must be completed within 180 days before filing.
If you meet these eligibility requirements, you can file for Chapter 13 bankruptcy in Colorado. However, it’s important to note that filing for bankruptcy can have long-term consequences on your credit score and financial history. It’s important to consult with an experienced bankruptcy attorney like The Law Office of Clark Daniel Dray to determine whether Chapter 13 bankruptcy is the right option for you.
How to File for Chapter 13 Bankruptcy?
Filing for Chapter 13 bankruptcy in Colorado can be a complex and time-consuming process. Here are the steps involved:
Step 1: Pre-filing requirements
Before filing for bankruptcy, you will need to complete a credit counseling course from an approved agency. This course can typically be completed online or over the phone and must be completed within 180 days before filing.
The purpose of the course is to help you understand your financial situation and explore alternatives to bankruptcy. You will also need to gather all of your financial information, such as your income, expenses, and debts, to provide to your bankruptcy attorney.
Step 2: Filing the bankruptcy petition
To begin the bankruptcy process, you will need to file a petition with the bankruptcy court in your district. The petition will include information about your finances, such as your income, expenses, assets, and debts. You will also need to provide information about any previous bankruptcy filings, lawsuits, and property transfers.
Step 3: Meeting with creditors
After filing the petition, you will be required to attend a meeting with your creditors, also known as a 341 meeting. During this meeting, you will answer questions from your creditors and the bankruptcy trustee about your financial situation. Your bankruptcy attorney will be present to represent you and ensure that your rights are protected.
Step 4: Confirming the repayment plan
Once the 341 meeting is completed, you will work with your bankruptcy attorney to develop a repayment plan. The plan will outline how you will pay your creditors over the course of three to five years.
The plan must be feasible and meet the requirements of the bankruptcy code. Once the plan is submitted, your creditors will have an opportunity to object to the plan. If there are no objections or the objections are resolved, the plan will be confirmed by the bankruptcy court.
Step 5: Completing the repayment plan
After the repayment plan is confirmed, you will begin making payments to the bankruptcy trustee. The trustee will distribute the payments to your creditors according to the terms of the repayment plan.
Once you have completed all payments under the plan, any remaining eligible debts will be discharged. It’s important to make all payments under the plan on time to ensure that you receive the maximum benefits available under the law.
Navigating the Chapter 13 bankruptcy process can be overwhelming, which is why it’s important to work with an experienced bankruptcy attorney like The Law Office of Clark Daniel Dray. An attorney can help guide you through the process and ensure that your rights are protected at every step.
What are the Benefits of filing for Chapter 13 Bankruptcy?
Filing for Chapter 13 bankruptcy in Colorado can provide several benefits for individuals struggling with debt. In addition to helping you reorganize and pay off your debts over time, Chapter 13 bankruptcy can also provide protection from foreclosure and repossession, lower interest rates and fees, and more time to pay off your debts. Additionally, as you make your payments on time under the repayment plan, your credit score will begin to improve.
To learn more about how Chapter 13 bankruptcy can help you, contact The Law Office of Clark Daniel Dray today.
Why do I need a Bankruptcy Attorney in Colorado?
Chapter 13 bankruptcy is a complex legal process that involves creating a repayment plan for your debts, negotiating with creditors, and appearing in court. An experienced bankruptcy attorney can provide valuable guidance and support throughout the process, helping you navigate the legal system and protect your rights. They can also help you avoid mistakes that could result in your case being dismissed or your debts not being discharged. That’s why it is highly recommended to have a Colorado bankruptcy attorney by your side.
At The Law Office of Clark Daniel Dray, we understand how difficult it can be to deal with overwhelming debt. That’s why we’re here to help. With over 10 years of experience, we have helped numerous clients find relief from debt and rebuild their financial futures. If you’re considering Chapter 13 bankruptcy in Colorado, contact us for a free consultation to see how we can assist you.
Call Our Trusted Bankruptcy Attorney in Denver, CO
Chapter 13 bankruptcy can be a powerful tool for managing your debts and getting your finances back on track. By reorganizing your debts and developing a repayment plan, you can gain greater control over your finances and avoid the stress and uncertainty of ongoing debt collection efforts.
At The Law Office of Clark Daniel Dray, we understand that bankruptcy is not the right choice for everyone. That’s why we offer a range of debt relief services, including debt consolidation, debt settlement, credit counseling, and debt management plans. Our experienced attorneys can help you explore all of your options and develop a customized plan that meets your needs.
If you’re struggling with debt in Colorado, don’t hesitate to reach out to us for help. We can also assist you with your estate planning concerns. Contact us today to schedule a free consultation and take the first step toward financial freedom.