February 24, 2010 - William L. Henry IV
Bankruptcy is the liquidation or restructuring of you personal or business debt. Your goals and unique situation will determine what bankruptcy chapter you must file under. In this article, our bankruptcy attorneys walk you through an overview of the bankruptcy process.
A Colorado chapter 7 bankruptcy involves you, the chapter 7 trustee, and your creditors. The chapter 7 trustee acts as a gatekeeper and reviews your case to determine if any of your property should be liquidated to satisfy the claims of creditors. Only non-exempt property can be liquidated. Therefore, it is important to understand what bankruptcy exemptions apply to your situations. Colorado bankruptcy exemptions include those for your home, vehicle, and personal property. Other exemptions may also apply to your case.
Not everyone is eligible to file a Colorado chapter 7 bankruptcy. First, you must undergo a "means test", which is based on national standards for your area. The means test can be complex, because there are different tests that you may go through in order to determine if you qualify. Never assume that you do not qualify for a bankruptcy without talking to a Colorado bankruptcy lawyer first. If you are eligible to file a chapter 7 bankruptcy, you will also need to take a bankruptcy class (credit counseling).
The filing of a bankruptcy begins with a petition. On the petition, schedules, and statement of financial affairs. You must provide a full list of your creditors, assets, income, and living expenses.
Once the petition is filed, an automatic stay is in place. This means that creditors cannot continue to levy your bank accounts, garnish your wages, or pursue other collection actions. If any of your property is nonexempt, the trustee will control it and direct whether and how it will be sold.
Twenty to forty days after the petition is filed, the bankruptcy trustee will first the first meeting of creditors, commonly referred to as a 341 meeting. After the meeting, creditors have sixty days to file an action with the court and argue that your debt is nondischargeable. Following the sixty day period, your debts are generally discharged.
Robinson & Henry maintains Colorado offices in Castle Rock, Denver, and Colorado Springs. A bankruptcy attorney from our firm is available to meet with you in person at any of our offices. Please contact us for a free consultation.
We are a debt relief agency, we help people file for bankruptcy relief under the bankruptcy code.
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