Have you been struggling with debt? Filing for bankruptcy can seem like the only way out. It’s not easy, but there are ways of making it easier on yourself – especially if your bankruptcy attorney is in Denver!<\/p>\n
Burdened by dental work or student loans or debt that just won’t stop growing despite all efforts at repayment–you’re probably thinking “I could go bankrupt too.” Well, hold onto those thoughts because we have an excellent team here who would love nothing more than helping someone get back up again.<\/p>\n
Let\u2019s talk about how you can get out of debt with the help of a Denver Bankruptcy Lawyer<\/a> at Dray Legal.<\/p>\n Because of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCP), many of my clients in Denver and other parts of Colorado believe they do not qualify for bankruptcy. Even with the new rules, Chapter 7 eligibility remains. The new bankruptcy rules only affect 3% of filers, the government claims.<\/p>\n They choose Chapter 7<\/a> because it discharges almost all unsecured debts without recourse.<\/p>\n The BPC defines gross income broadly. However, it excludes SSI and SSD (SSD). Without regard to whether or not the spouse files, the debtor’s spouse’s gross income is included.<\/p>\n Chapter 7 is automatic if the debtor’s gross income is less than the median income for their family size. Military or Homeland Defense personnel with unsecured business debt and a 30% disability rating automatically qualify for Chapter 7<\/a>.<\/p>\n Debtors who earn more than the DOJ’s inflation-adjusted threshold must pass the Means Test. The Means Test subtracts withholding taxes. The Means Test also limits deductions to IRS regional and local allowances. After deducting all authorized costs, a debtor must file chapter 13 and pay a trustee monthly (usually for 60 months).<\/p>\n Disability, recent unemployment, or even death may qualify a debtor for Chapter 7. Student debt payments are rare. No unusual circumstances exist, the debtor’s income is reasonable, and Chapter 13 is not preferred.<\/p>\n A debtor may be denied a discharge if they act in bad faith, such as making excessive luxury purchases.<\/p>\n To determine eligibility under Chapter 7 or 13, contact Dray Legal for legal help and individual evaluation.<\/p>\n To prevent overreaching creditors from seizing all of a debtor’s property, the Bankruptcy Code references Colorado state law (i.e. what a debtor can keep). Creditors or the trustee may sell a large portion of the debtor’s property to pay debts. Many would-be filers never consult a Denver bankruptcy attorney on how they can protect their assets<\/a> and get a fresh start. Dray Legal can help you maximize your Chapter 7 or 13 exemptions.<\/p>\n With Chapter 7 and Chapter 13 bankruptcy<\/a>, Colorado provides extensive property homestead exemption and others. Find out from our experienced bankruptcy attorneys what your exemptions may be.<\/p>\n The initial payment has no bearing on the property’s value. The property value on the day of bankruptcy<\/a> is vital. Vehicles and furniture depreciate quickly.<\/p>\n Assume you own a $300,000 home that you want to keep, but was purchased for $350,000. The loan is $200,000. It’s a $100,000 profit! If you’re under 60 and not disabled, your non-exempt equity is less than $40,000.<\/p>\n A chapter 13 payment plan may be preferable to a chapter 7 trustee selling the house to repay unsecured creditors. If the debtor qualifies, Chapter 7 protects the home up to $260,000 in value. If you have too much equity, you can sell or refinance.<\/p>\n If you have no equity, you can sell the house and pay off your debts. Surrendering a large equity home is clearly not the best option.<\/p>\n The Colorado Bankruptcy Exemptions also protect property from seizure and sale. The income from an otherwise exempt property can still be used to determine eligibility or the Means Test. For example, sheltered retirement income.<\/p>\n Knowing what a Chapter 7 trustee may liquidate allows you to protect your most prized possessions. A bankruptcy lawyer at the Dray Legal law firm will fight tirelessly to keep your property.<\/p>\n The U.S. Trustee appoints trustees. A trustee is not a judge but locates and liquidates non-exempt assets for unsecured creditors. For example, a boat or timeshare are \u201cnon-essential\u201d personal property items.<\/p>\n By surrendering non-exempt property, most debtors repay part or all of their debts under Chapter 7 or 13. Our bankruptcy attorneys can help you protect your assets.<\/p>\n Colorado trustees are more proactive due to limited asset protection. Debt relief through Chapter 7 is quick and easy. A debtor must either immediately return an exempt item or pay its value monthly. Ordinarily, a \u201cno-asset\u201d trustee receives $60 plus a fee.<\/p>\n The unsecured creditors’ trustee in Chapter 13 has additional duties. The remaining monthly plan payments go to unsecured creditors who filed timely Proofs of Claim. Late payments lead to dismissal. (A month behind is acceptable.) A trustee and a debtor’s lawyer will always be at odds over unsecured debt.<\/p>\n The chapter 13 trustee has a reason to complain: 10% of all payments. Subjective bankruptcy usually irks the trustee. Means-Test deductions raise plan payments (and request documentation or receipts). A 3-year plan (for low-income debtors) may result in more money paid to unsecured creditors and the trustee.<\/p>\n A bankruptcy trustee guarantees non-exempt asset value. In Colorado, the principal house homestead exemption is $60,000 ($90,000 for seniors or disabled). After mortgage liens and selling costs, a $20,000 non-exempt component must be \u201creconciled\u201d over 3\u20135 years (interest-free). So the debtor’s assets are protected.<\/p>\n Clark Daniel Dray, an experienced Denver bankruptcy lawyer, can help you protect your rights.<\/p>\n With our vast legal experience, we have helped clients and companies to reduce or eliminate credit card debt, medical bills, tax debt, and debt arising from foreclosure or repossession.<\/p>\n According to the client’s goals and the Means Test, Chapter 7 bankruptcy is not at all like Chapter 13 and requires no monthly plan payments. The quickest and easiest way out of debt is filing Chapter 7. To keep valuable assets and to restructure most debts into three to five-year monthly payments, one must file Chapter 13.<\/p>\n We offer a free initial consultation in our Denver, Colorado office to those considering bankruptcy. We’ll look over your finances to prepare your bankruptcy case as well as notify you of exclusions.<\/p>\n This data will be used to determine eligibility for Chapter 7 under the Means Test, Chapter 13 plan length, and monthly disposable income. Your case is filed and an Automatic Stay<\/a> is issued.<\/p>\n Bankruptcy petitions are filed using financial data, a retainer, and a court filing fee. A 341 hearing will be held 3-4 weeks after filing. If you file Chapter 13, we’ll discuss monthly payments and plan length.<\/p>\n Chapter 7 or 13 trustees usually hold a 10-15 minute meeting of creditors in the Colorado Bankruptcy Court. Within 45 days of the creditor meeting, you must complete a financial management course.<\/p>\n Objections to discharge in Chapter 7 must be made within 60 days. Absent an objection, the debtor is freed.<\/p>\n The Chapter 13 plan may be opposed three court days before the 341 hearing. An objection can be made by a secured creditor or the Chapter 13 trustee. Pre-meeting concerns will be addressed.<\/p>\n Another chapter 13 trustee hearing in Denver is set to determine if a confirmable plan exists. The court may modify or approve the plan on the spot. Upon approval, the debtor will pay monthly until discharged. The court approves most of our chapter 13 requests.<\/p>\n A petition filed in Colorado prevents most secured and unsecured creditors from collecting on a debtor’s property. A hearing in Colorado Bankruptcy Court is not required to obtain the Automatic Stay. The Automatic Stay protects almost all of our clients from creditors suing, garnishing, or levying their wages, bank accounts, etc.<\/p>\n A special motion may be filed within a year of the case to obtain the regular collection restrictions.<\/p>\n For example, Dray Legal will vigorously enforce the Automatic Stay to prevent creditors from:<\/p>\n It needs to be said that an automatic stay has limitations:<\/p>\n Unconfirmable plans can expect a 36- to a 60-month confirmable monthly payment schedule. Relief from stay request in a Chapter 13 case is avoided by paying the lender and the plan together.<\/p>\n Dray Legal Attorneys can help you determine which collection methods are illegal and enforce the automatic stay, to stop creditor harassment. Creditors who violate the automatic stay will face consequences. Trust that our reliable attorneys will make sure an extension of the automatic stay is processed for recent filers.<\/p>\n\n
New Colorado Bankruptcy Laws<\/h2>\n
Qualifying for Chapter 7<\/h3>\n
Qualifying for Chapter 13<\/h3>\n
Denver Bankruptcy Exemptions<\/h3>\n
Calculate the equity and any closing costs.<\/h4>\n
You may be wondering what happens if you have too much equity.<\/h4>\n
Bankruptcy Trustees<\/h3>\n
Colorado Bankruptcy Process<\/h2>\n
Bankruptcy Automatic Stay<\/h3>\n
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Secured and unsecured creditors in Chapter 13<\/h4>\n
Why do you need a bankruptcy attorney?<\/h2>\n