Garcia & Gonzales, P.C.
5 Questions to Ask Yourself (& Answer) before Filing for Bankruptcy
When you are ready to take action to resolve serious debt issues, filing for bankruptcy can be one of your better options for debt relief. Before you proceed with a bankruptcy case, however, answering the following questions can help you determine:
- What type of bankruptcy case may be best suited for you, based on your situation and needs
- Whether there are additional steps you may need to take before submitting the official bankruptcy petition with the court.
Important Questions to Answers When Preparing for Bankruptcy
- How long ago was my prior bankruptcy case? – If you have filed for bankruptcy in the past, how long ago your prior case was will matter now, as it can preclude you from being able to pursue certain types of bankruptcy this time around. For instance, if your last case was a Chapter 7 case, you will have to wait at least 8 years before you can file for Chapter 7 again in Colorado.
There are different time limits for filing for bankruptcy again in Colorado, based on when the last case was filed, as well as what types of bankruptcy case(s) was/is being pursued. So, this is an important consideration, as it can indicate when people may need to consider bankruptcy alternatives.
- Have I taken the means test? – If not, you need to do this if you are considering filing for Chapter 7 bankruptcy. The means test, which assesses people’s income versus debts/expenses, will dictate whether you are eligible to file for Chapter 7. Those who are generally ineligible for Chapter 7 will be people who fail the means test (which can occur because, for instance, people earn too much money).
- How much nondischargeable debt do I have? – Not all debts can be discharged via bankruptcy. Understanding your debt situation and whether bankruptcy will (or won’t) eliminate your debts can be another important step in determining whether Chapter 7 or Chapter 13 is a better option for you.
- Have I completed the credit counseling requirement? – If not, this will have to be done before you file for bankruptcy. That’s because a bankruptcy petition can be dismissed when people have failed to complete the credit counseling requirement. And, when this happens, petitioners will typically have to wait at least 180 days before they can once again submit a bankruptcy petition to the court.
- Have I received any notices from creditors regarding impending lawsuits, garnishments, and/or repossessions/foreclosures? – If so, then time is of the essence with your bankruptcy case, as you will want to get your petition submitted to the court before a judgment against you is issued, the garnishment goes into effect and/or your assets or home are taken from you. Filing for bankruptcy can halt all of these proceedings, but it cannot reverse them once they have gone into effect.
Contact a Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust an experienced Denver bankruptcy lawyer 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 or by emailing us using the contact form at the bottom 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.