Chapter 7 Attorneys
in Westminster, Colorado

Chapter 7 bankruptcy can be a powerful way to eliminate debt and give people a financial fresh start. Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy.  However, in many instances, as long as your assets are within equity limits it is possible to file a Chapter 7 and keep your property. Chapter 7 bankruptcy essentially involves:

  • Transferring someone’s non-exempt assets into a bankruptcy estate
  • Liquidating them to pay that person’s creditors (to the extent possible)
  • Discharging the person’s debts so (s)he can start a new financial chapter in his or her life.

Chapter 7 Bankruptcy: When to Consider Filing

If you find yourself facing any of the following situations, it may be a good time to seriously start considering filing for Chapter 7 bankruptcy:

  • You have missed one or more bill payments in recent months because you couldn’t afford to pay them.
  • You have lost your job and don’t have any employment prospects in the near future.
  • Your debt seems to be growing month to month while your income remains stagnant (or non-existent).
  • You are getting a lot of calls and/or letters from creditors that may be threatening you with wage garnishments, repossessions, foreclosure, and/or lawsuits.

Chapter 7 Bankruptcy: The Means Test

When pursuing Chapter 7 bankruptcy, it’s important for people to realize that they have to first pass a “means test” in order to prove they qualify for this federal debt relief option. The means test for Chapter 7 bankruptcy:

  • Assesses a person’s average income for the past six (6) months
  • Compares this average to the median income for Colorado.

People whose average income for this period is lower than the median income for Colorado will have “passed” the means test and, consequently, will qualify for Chapter 7 bankruptcy in Colorado. If, however, people don’t pass the means test based on their income:

  • Other elements of the means test may still be used to see if these people can still qualify; or
  • These people can pursue a Chapter 13 bankruptcy case instead.

When people do pass the means test, they will also have to complete a state-approved credit counseling course within six (6) months before filing for bankruptcy in order to qualify for Chapter 7 bankruptcy in Colorado.

Chapter 7 Bankruptcy: The Benefits

The benefits of filing for Chapter 7 bankruptcy can be numerous. In particular, some of the most commonly realized advantages of this type of bankruptcy can include that it:

  • Provides people with immediate relief from creditors (and the punitive actions they may be threatening to take)
  • Grants people longer-term debt relief by discharging various types of debt (such as credit card debt, medical-related debt, mortgage debt, etc.)
  • Allows people to eliminate debt while still retaining some of their important assets (per Colorado bankruptcy exemptions).

Denver Metro Area Bankruptcy Attorneys at Garcia & Gonzales, P.C.

Are you ready to find out more about how Chapter 7 bankruptcy can help you? If so, it’s time to contact the experienced Denver bankruptcy attorneys at Garcia & Gonzales, P.C. 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.

Serving individuals, families, and businesses throughout Colorado since 1977, our attorneys can always be relied on to:

  • Clearly explain your best options for resolving your debt issues
  • Develop innovative solutions to unique financial issues
  • Provide you with effective, affordable and high-quality legal services
  • Treat you with respect while maintaining an open line of honest communication with you
  • Work diligently to help you achieve the best possible outcomes for your financial issues.

Let’s Talk about Your Debt Relief Options – Contact Us Today

To learn more about whether Chapter 7 bankruptcy is right for you, contact us today by calling 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.