IS FILING BANKRUPTCY RIGHT FOR YOU? Learn more by scheduling a private financial consultation and analysis with a bankruptcy attorney.
During your consultation, you'll learn:
The two kinds of bankruptcy available to personal debtors — Chapter 7 and Chapter 13 — and how to decide which one is best for your situation. How to stop a foreclosure instantly. Plus, discover one common kind of debt not covered by bankruptcy. How to force creditors to accept a reduced payment plan that works with your current level of income. How to stop collection calls and restore financial sanity to your life. We have helped more than 1,000 people file for bankruptcy in Colorado — both Chapter 7 and Chapter 13. We will help you find the best course of action for your unique situation. Simply complete the form and schedule a complimentary consultation. Your privacy is guaranteed.		Please contact me to schedule a no-obligation private consultation with a bankruptcy lawyer. Name: Email: Phone:     You can also contact us by phone at 720-493-9733. Your privacy is guaranteed.

ANSWERS TO COMMON BANKRUPTCY QUESTIONS*

What Is Bankruptcy?
Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in Federal Court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

What Can Bankruptcy Do for Me?
Bankruptcy may make it possible for you to:

• Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge" of debts. It is designed to give you a fresh financial start.
• Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
• Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
• Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
• Restore or prevent termination of utility service.
• Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

What Can Bankruptcy Not Do?
Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:

• Eliminate certain rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the debt.
• Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and some taxes.
• Protect co-signers on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the co-signer may still have to repay all or part of the loan.
• Discharge debts that arise after bankruptcy has been filed.

What Different Types of Bankruptcy Cases Should I Consider?
There are four types of bankruptcy cases provided under the law:

• Chapter 7 is known as "straight" bankruptcy or "liquidation." It requires a Debtor to give up property which exceeds certain limits called "exemptions" so the property can be sold to pay creditors.
• Chapter 11, known as "reorganization" is used by businesses and a few individual Debtors whose debts are very large.
• Chapter 12 is reserved for family, farmers and fishermen.
• Chapter 13 is called "debt adjustment." It requires a Debtor to file a Plan to pay debts (or parts of debts) from current income.

Most people filing bankruptcy will want to file under either Chapter 7 or Chapter 13. Either type of case may be filed individually or by a married couple filing jointly. If your income is above the median income for a family the size of your household in Colorado, you may have to file a Chapter 13 case (In 2011, the median income in Colorado for a family of 4 was $82,621).

Will Bankruptcy Affect My Credit?
There is no clear answer to this question. Unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse. The fact that you have filed a bankruptcy can appear on your credit record for ten years. But because bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills and you may be able to get new credit.

What Does It Cost to File for Bankruptcy? (Filing Fee Only)
The Court now charges $299 to file for bankruptcy under Chapter 7 and $274 to file for bankruptcy under Chapter 13, whether for one person or a married couple. The Court may allow you to pay this filing fee in installments if you cannot pay it all at once. If you are unable to pay the filing fee in installments, you may request that the Court waive the filing fee. If you hire a bankruptcy attorney, you will also have to pay the attorney's fees you agree to.

The Bankruptcy Law Professionals of Colorado, 4610 S. Ulster Street, Suite 150, Denver, Colorado 80237,
is a debt relief agency. We help people file for relief under the Bankruptcy Code. Licensed in Colorado.

* This information is used with the permission of the National Consumer Law Center,
77 Summer Street 10th Floor, Boston, MA 02110 and was taken from the Consumer Bankruptcy Law
and Practice Special Guide to the 2005 Act, 2005 Supplement by Henry J. Sommer and John Rao.
Copyright 2005 by the national Consumer Law Center Inc.

Copyright 2011 Bankruptcy Law Professionals of Colorado — All rights reserved.