What Our Bankruptcy Attorneys Can Help With When Filing Bankruptcy in Colorado
Financial burdens and the possibility of a new beginning can trigger various emotions. If you have already decided to file for bankruptcy, it is crucial to tackle this challenging undertaking with a balanced mentality. It is best to have a clear mind and understanding when dealing with a big decision, such as filing for bankruptcy. We will discuss how to fill out bankruptcy forms in Colorado or any part of the country below.
The complicated procedure of filling out bankruptcy documents needs the assistance of Colorado bankruptcy lawyers, like the Law Office of Clark Daniel Dray. Our bankruptcy attorneys provide knowledge and skills to help clients at each stage of the bankruptcy procedure. Their familiarity with the complexity of bankruptcy laws, rules, and processes guarantees that the paperwork is correctly filled out and adheres to all legal requirements.
Here’s a rundown of the important things you need to know:
- The Voluntary Petition for Individuals Filing for Bankruptcy (Form B101) is a crucial document to initiate the bankruptcy process.
- Key information needed includes the applicant’s Social Security Number, business name (if applicable), chosen bankruptcy chapter, filing fee payment method, past bankruptcy filings, home rental status, ownership of hazardous property, and completion of a credit counseling course.
- Detailed information about your property, collateralized debt, other debts, contracts, codebtors, income, expenses, and financial affairs must be provided accurately in the relevant sections of the bankruptcy form.
- It is essential to disclose past financial transactions and history, including income, lawsuits, safe deposit boxes, foreclosures, and more.
What Information Does a Bankruptcy Form Need?
Completing the official bankruptcy papers is not difficult, following the simple directions provided at the top of each page. Along with each question, there are instructions in the left-hand column. But remember that the forms do not provide any information about what may transpire in your bankruptcy case. Understanding the law, including whether you can safeguard your property, is crucial before filing. You will also want to determine if your debts are eligible for a discharge, the court ruling that cancels your debts.
What Forms Do I Need to File Bankruptcy?
Individuals searching for bankruptcy protection under the United States Bankruptcy Code must file a legal document known as the Voluntary Petition for Individuals Filing for Bankruptcy. This document, sometimes known as Form B101, is frequently submitted to the bankruptcy court to start the bankruptcy procedure.
In general, here are known information needed to provide in the form:
- Applicant’s Social Security Number
- Name of any business of the applicant
- Bankruptcy chapter that the applicant intended to file
- Filing fee mode of payment
- Did the applicant file for bankruptcy within eight years?
- Applicant’s home rental status
- If the applicant owns any hazardous property
- If the applicant completed a credit counseling course
Identifying specific information when filling out a bankruptcy form is crucial to ensure the procedure runs successfully.
You must list all your property on Schedule A/B: Property, including real estate, different vehicles (including cars, vans, trucks, motorcycles, etc.), watercraft, aircraft, personal property (including furniture, electronics, clothing, etc.), financial assets (including bank accounts and investments), debts owed to you (including tax refunds, loans, and other obligations), assets related to your business, and any other assets you may own.
The debt is a secured bankruptcy claim and will be shown on Schedule D: Creditors Who Have Claims Secured by Property if your creditor has the legal power to seize collateral if you fall behind on your payments. Two of the most typical collateralized loans are mortgages and auto loans.
You will include all your outstanding debts, including priority debts like child and spousal support, taxes, and drunk driving personal injury claims, on Schedule E/F: Creditors With Unsecured Claims. List any other amounts outstanding, such as credit card balances, medical expenses, personal loans, and utility payments.
Contracts and Leases
You most certainly have an executory contract or lease if your agreement has not yet expired, such as a gym membership or a rental agreement for equipment. Schedule G: Executory Contracts and Unexpired Leases is where you have to list it.
On Schedule H: Your Codebtors, you must include any codebtors or people who would be liable for your debt if you cannot make payments. Cosigners for auto loans and joint cardholders are frequent codebtors.
You disclose your income and employment details on Schedule I: Your Income. Consider a scenario in which you are married yet declare bankruptcy alone. In that situation, unless you are divorced, you need to disclose your spouse’s income. It is better to have a bankruptcy attorney as this is a tricky topic.
You will list your monthly expenses on Schedule J: Your Expenses. Deduct your expenses from the Schedule I net income number to calculate your monthly disposable income. Remember that if you apply for Chapter 7 and have a sizable disposable income, the judge may determine that you can afford to make a Chapter 13 payment to your creditors.
You must disclose details about your previous financial transactions and history on the Statement of Financial Affairs for Individuals Filing for Bankruptcy form. This information includes your gross income for the past two years and year to date, current lawsuits, safe deposit boxes, past foreclosures and repossessions, property transfers, assets held for other people, closed bank accounts, and business information.
You can inform the court about your assets, debt, income, expenses, and kind of debt by moving totals from your other schedules to the Summary of Your Assets and Liabilities and Certain Statistical Information form.
How Do I File for Bankruptcy in Colorado?
In most ways, declaring bankruptcy in Colorado is similar to declaring bankruptcy in another state. The bankruptcy procedure operates by annulling the agreements between you and your creditors and governed by federal law, not Colorado state law. You can start over because of that. In Colorado, they choose which assets you are permitted to keep in your bankruptcy case.
Chapter 7 Filing in Colorado
Due to its quickness and affordability, Chapter 7 bankruptcy is often chosen since it takes only a few months and requires no payments to creditors. The Chapter 7 trustee, who may sell luxuries, homes, or vehicles with high equity, sells non-essential property to pay creditors. Therefore, it is best suited for people with few assets. In contrast to Chapter 13, Chapter 7 does not offer a payment plan option for catching up on past-due automobile or mortgage payments, which could result in the loss of these assets if you are already behind on your obligations when you file.
Chapter 13 Filing in Colorado
Chapter 13 bankruptcy is a three- to five-year repayment schedule that allows filers to keep their assets while partially or fully satisfying creditors. It answers money concerns, such as getting behind on vehicle or mortgage payments or getting nondischargeable creditors to agree to acceptable payment schedules. However, some people may find it expensive, making monthly payments difficult. Businesses are also ineligible for Chapter 13. Owners should look into small business bankruptcy options to determine which bankruptcy is best for them.
Know How To Fill Out Bankruptcy Forms in Colorado Through Our Bankruptcy Attorney
Declaring bankruptcy may be tremendously difficult, emotionally draining, and challenging from a legal and financial perspective. Our Colorado bankruptcy attorneys can guide people and corporations through bankruptcy proceedings because of their in-depth knowledge of bankruptcy law.
Our attorneys from The Law Office of Clark Daniel Dray can help you when filling out forms for bankruptcy and provide guidance and advice on your journey with your bankruptcy. We have a free consultation for those who want to delve into bankruptcy. We also have other services like asset protection, probate, and trusts.