Continuing from Filing for Colorado Bankruptcy: FAQs (Pt. 1), here, we will respond to some more frequently asked questions about this debt relief option.
More Answers about Filing for Colorado Bankruptcy
Q – Will I lose my house by filing for Colorado bankruptcy?
A – Not necessarily. In fact, by filing for bankruptcy, in some cases, people may be able to keep their homes even after a bank has threatened to foreclose on it. The reasons for this can be that:
- With Chapter 7 bankruptcy, there is a homestead bankruptcy exemption, which allows petitioners to exempt up to $60,000 of their home or other qualifying property from the bankruptcy estate. In some cases, this exemption may be increased (or even doubled), depending on the personal circumstances of a given petitioner.
- With Chapter 13 bankruptcy, petitioners may be able to work out viable repayment plans that allow them to effectively get caught up on mortgages that may be arrears and, in doing so, keep their homes.
So, if you are worried about losing your home and you are facing a lot of debt, again, filing for Colorado bankruptcy may be your best option for debt relief.
Q – Is Chapter 7 or Chapter 13 better for me?
A – We can’t respond to this question without knowing the particulars of your financial situation. However, in general:
- Chapter 7 bankruptcy may be a better option for you if you have little to no income, a large portion of your debts are unsecured debt (like credit card or medical bill debt) and/or you haven’t filed for bankruptcy before in the past.
- Chapter 13 bankruptcy may be a better option for you if you earn a significant amount of income, you want to retain as much of your assets as possible through the bankruptcy case and/or you have recently filed for bankruptcy in the past.
If your business is facing a financial crisis, contact us to learn more about your best options for corporate debt relief.
Q – What are the benefits of filing for Colorado bankruptcy?
A – Depending on your situation, there can be a lot of benefits to filing for Colorado bankruptcy. Just some of these can include:
- Stopping creditors from harassing you
- Stopping creditors from suing you, garnishing your wages, repossessing your assets and/or foreclosing on your home
- Eliminating a large portion (if not all) of your unsecured debt
- Getting a financial fresh start.
For some more answers about filing for Colorado bankruptcy, don’t miss the upcoming conclusion of this blog series!
Denver Metro Area Bankruptcy Attorneys at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
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.