Skip to main content

Know all your rights through bankruptcy consultation Denver in Colorado

 Most individual bankruptcies in the US are filed either under Chapter 7 or Chapter 13, that eliminate your debt differently. You need to pursue different procedures for full or partial repayment to your creditors. If you take bankruptcy consultation Denver in Colorado, you will come to know that Chapter 7 bankruptcy could be an option if your financial means fall below a specified limit, which is the Median income of the family of your size in the state of Colorado. If your average income for the past six months before filing of Chapter bankruptcy is less than the Median income of the size of your family the Colorado, you will primarily pass the test and be eligible to file for Chapter 7 bankruptcy. However, your assets valued beyond an exempt amount will be forfeited and sold, and the proceeds will be distributed among your creditors.   

  

A trustee will be appointed by the bankruptcy court to oversee your personal assets and finances, and ensure that your creditors are paid off in the right order, as per “Absolute Priority” rules. Secure debts are cleared first, followed by unsecured debt. Secured debts are backed by collateral to reduce the risk associated with lending. In case of default, the bank will seize the collateral, sell it, and use the proceeds to pack the creditors. Debts that are secured include mortgages and auto loans. Interest rates on secured debts are often lower. Unsecured debts are not backed by any collateral. Credit card bills and medical costs are two examples. Your lawyer providing you with bankruptcy consultation Denver, such as the ones available with Recovery Law Group, will work to wipe out most or all of your unsecured debts.  

  

However, certain assets are exempt under Chapter 7 bankruptcy, which are:  

  

·         A certain amount of home equity  

·         A vehicle of a certain value   

·         Some tools of the trade  

·         Many household goods  

·         Most public benefits  

·         Retirement accounts, etc.   

  

Reorganization plan under Chapter 13   

Get to know more about exemptions under Chapter 7 during your bankruptcy consultation Denver. However, if you earn sufficiently and only need extra time to repay your debts, you may be suggested to file for Chapter 13 bankruptcy wherein you will agree to a reorganization plan to repay your debts under the supervision of the court. Chapter 13 will halt the foreclosure process that would have resulted in your home being seized. You will pay all your secured debts, mortgages, car loans, etc., over a period of three to five years, and pay a portion of your unsecured debts, such as credit cards. You will pay an agreed-upon sum each month, that will effectively consolidate all your debts into a single monthly payment.   

  

At the end of the repayment plan, any remaining debt, with certain exemptions, will be discharged by the court, which means you will not be required to repay that. Your Recovery Law Group attorney providing you with bankruptcy consultation Denver will ensure that automatic stay is implemented as soon as you file for bankruptcy, be it Chapter 7 or Chapter 13. Automatic stay means your creditors will not be able to contact you as soon as the bankruptcy is filed, and must stop all their collection and recovery efforts. If they still continue, Recovery Law Group’s specialist bankruptcy lawyers will sue them for violating the automatic stay.   

 

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Chapter 7 bankruptcy Las Vegas to eliminate your debts and give you a fresh restart for financial stability

Chapter 7 bankruptcy focuses on liquidating your non-exempt assets, and your many types of unsecured debts are eliminated. You may be suggested to file for Chapter 7 bankruptcy by your lawyer based on certain signs, like your unsecured debts are more than half of your annual income, or it would take you five years or more to pay your debts even if you took extreme measures. Bankruptcy will set you financially free as debts get discharged, and you also get peace of mind. When the stress and anguish go away, you will be in a condition to make better decisions, and handle your financial life in a better way.         When the process is complete, a vast majority of debts will be eliminated, and you will have a cleaner slate to start afresh. To qualify for Chapter 7 bankruptcy Las Vegas in Nevada, you will have to pass a Means Test, that aims to prevent low earners from getting the benefits of Chapter 7 bankruptcy protection. To qualify for the test, your averag...
Post a Comment
Read more

All that you need to about bankruptcy and expectations in bankruptcy consultation

You may feel the need to file for bankruptcy for many reasons, like your debts have become overwhelming and unmanageable, or you experienced job loss or reduction in income, that may make it hard to keep up with your payments and other regular financial commitments. Though filing of bankruptcy could be a difficult decision, especially when it has a stigma attached to it, nevertheless, it’s a legal option that gives you a chance to put your business together and have a financial restart. However, not everyone is aware of which type of bankruptcy they qualify for, and how to proceed with it. It’s here that the expertise of specialist bankruptcy lawyers, such as Recovery Law Group, can make all the difference to your financial future. When you consult for bankruptcy, you will come to know that all individual bankruptcy cases are handled by federal courts in the USA. Most individual bankruptcies are filed either under Chapter 7, or Chapter 13 of the US Bankruptcy Code.   You may ...
Post a Comment
Read more

Understanding the role of Chapter 13 bankruptcy trustee and their critical functions

  Chapter 13 bankruptcy, also known as “Wage Earner’s Plan”, is offered to individuals who need some extra time to pay off their outstanding debt. To qualify for Chapter 13, the debtor must have a steady income from various sources, and should not have more than $2,750,000 in unsecured debts, and $2,750,000 in secured debts. The debtor is given 3 to 5 years of time to repay their outstanding debt, and must demonstrate the ability to make the scheduled payment based on their income. The proposed plan must be feasible, and for this, the bankruptcy court will appoint a trustee to work out the plan, and how to repay the creditors.        The trustee has an important role to play in Chapter 13 bankruptcy. He will ensure that the proposed repayment plan complies with legal requirements, and is feasible based on the debtor’s income and expenses. The role of Chapter 13 bankruptcy trustee is quite comprehensive, he has to collect monthly payments from the debtor, an...
Post a Comment
Read more