Myths about Chapter 7 Bankruptcy

Myths about Chapter 7 Bankruptcy

Chapter 7 bankruptcy, or liquidation bankruptcy, can be an effective debt relief option. It is not for everyone, however, as there are some limitations regarding who can pursue a Chapter 7 case, as well as what a Chapter 7 case can do.

To set the facts straight, below we have dispelled some of the most common misconceptions about Chapter 7 bankruptcy cases in Colorado. When you are ready to get answers about your best debt relief options, contact a Denver bankruptcy attorney at Garcia & Gonzales, P.C.

Chapter 7 Bankruptcy Myths Debunked

  1. I can get rid of all of my debt via a Chapter 7 bankruptcy case – Not necessarily! It depends on what type of debt you have, as not all debt is dischargeable via a Chapter 7 case. In fact, just some of the types of debts that won’t be eliminated via Chapter 7 include student loan debt, some tax debts and child support-related debts. So, if you are considering Chapter 7, take a careful look at the types of debts you have to see whether you would really benefit from any discharge.
  2. If I file for Chapter 7, I’m going to lose my home – This is also not necessarily true. Depending on your debts and the value of your home, you may be able to retain your home through a Chapter 7 case by taking advantage of the Colorado homestead bankruptcy exemption. So, don’t make this assumption.
  3. I can’t file for Chapter 7 if I have currently have a job – Not true at all! Whether or not you qualify for Chapter 7 in Colorado is not based on whether or not you have a job/income. Instead, it’s based on whether you “pass” the Colorado means test, which evaluates your income to debt. While earning too much income can preclude you from filing for Chapter, simply having a job is not the deciding factor.
  4. If I have filed for Chapter 7 before, I can’t ever file for it again – Wrong again! It is possible to file for Chapter 7 again in Colorado, with the eligibility to file another case being contingent on how long ago the previous case was resolved. So, again, don’t count this option out if you have filed for bankruptcy in the past. You may still be able to file again now.
  5. I don’t need a lawyer to help me with a Chapter 7 bankruptcy case – Well, you don’t need a lawyer if you are not serious about protecting your rights and interests in the bankruptcy process. If, however, you are intent on resolving your debt issues as favorably as possible – and retaining as much of your assets as possible through the process, retaining a lawyer will be essential.

Contact a Denver Bankruptcy Attorney at Garcia & Gonzales, P.C.

Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy attorney at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services.

To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.

When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.

Categories: Bankruptcy