What is Bankruptcy?

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The Bankruptcy Process

The Colorado bankruptcy process is guided by federal rules and is designed to help consumers and businesses get rid of their debt under the protection of the United States Bankruptcy Court located in Downtown Denver. As you may know, there are two ways for individuals to file bankruptcy under the law: Chapter 7 and Chapter 13. The trick is to hire experienced Colorado attorneys that understand the law and know how to save your house, car and possibly save you thousands of dollars in the long run. You run a severe risk of not getting the full benefits of bankruptcy if you file for yourself or use one of the many filing services that are found all over the internet. You need experienced Colorado bankruptcy attorneys that will fight for your financial future and who can tell you which option is the best for you, after interviewing you about your unique financial situation

What is the difference between Chapter 7, Chapter 13 and Chapter 11?

Chapter 7 Bankruptcy

This refers to the corresponding section of the United States Bankruptcy Code that deals with liquidation. In a Chapter 7 liquidation case, a bankruptcy trustee collects your “non-exempt” property and converts it into cash. This is one of the most important reasons why you should hire an attorney: to get the most exemptions possible under the law. The trustee then distributes the cash among all of your creditors according to an order of priority described in the Bankruptcy Code. If you do not have much money—Do not Worry! Most times, creditors do not receive the full amount owed through this process; in fact, most may receive no payment at all and in most cases you keep all your property. When liquidation and distribution are complete, the bankruptcy court will discharge or excuse most remaining debts that you may have in as little as three months. It sounds simple, but you need a Colorado bankruptcy attorney to guide you through the complicated process and hearings. More information here.

Chapter 13 Bankruptcy

This refers to the corresponding section of the United States Bankruptcy Code that deals with reorganization. A Chapter 13 bankruptcy can only be used if you have regular income from one or more sources. A Chapter 13 case is usually filed on behalf of individuals who are behind on their mortgage, car or real estate taxes or who have too many assets or income to qualify for a Chapter 7 case under the law. Other times, our clients use the Chapter 13 bankruptcy process to discharge their second mortgage on the house they would like to keep to lower the payments in the future. In a Chapter 13 case, you will enter into a payment plan, which usually lasts between 3 and 5 years. For most plans, only a portion of what you currently owe to your creditors is paid over time by making regular monthly payments to a single Colorado bankruptcy trustee, who then pays your creditors. Thus, you only pay back what you can afford to pay back. Even better, the attorneys at Weselis & Suchoparek LLC allow you to put most of your Chapter 13 legal fees into the Chapter 13 repayment plan. More information here.

Chapter 11 Bankruptcy

A Chapter 11 bankruptcy refers to business reorganization. Although it is often the type of bankruptcy the general public hears about via the news media, this type of bankruptcy usually applies to businesses and not individuals. Therefore, your individual bankruptcy options are Chapter 7 and Chapter 13, which are discussed above.


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