When President Bush changed the bankruptcy laws in 2005, the section of the Bankruptcy Code that changed the most was the provision of Chapter 7 bankruptcy. Now there are strict rules and procedures that must be followed in order to ensure successful discharge. Unfortunately, some individuals not represented by counsel will have their case dismissed or lose property that could have easily been kept if they just did it right. We cannot tell you how many times we have been in the Colorado Bankruptcy Court and seen people lose assets they own that could have easily been kept if their bankruptcy was prepared and filed correctly or if these clients were represented by an attorney during their bankruptcy hearing. Our clients will never have to worry about this because we are a full representation law firm and will represent you from the start to the finish of your Chapter 7 bankruptcy.
Chapter 7 refers to the corresponding section of the United States Bankruptcy Code that deals with liquidation. However, if done right, you will almost always keep all your property in a consumer bankruptcy case. In a Chapter 7 bankruptcy case, a Bankruptcy Trustee may collect your “non-exempt” property and convert it into cash for the benefit of your creditors. This is one of the most important reasons why you should hire an attorney: to get the most exemptions possible under the law. Thus, if your attorney can exempt all of your assets for you, you will be able to keep all of your assets in your Chapter 7 bankruptcy.
If there are any non-exempt assets in your case, the Bankruptcy Trustee then sell your items for cash, and then distribute the cash among all of your creditors according to an order of priority described in the Bankruptcy Code. In most cases where the Bankruptcy Trustee is administering assets, the creditors only receive a very small portion of what is owed. When the liquidation and distribution are complete, the Colorado 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, attend necessary hearings and prepare your case with the correct Colorado state law exemptions.
If you are worried about losing an asset if you file for Chapter 7 Bankruptcy in Colorado—DO NOT WORRY! Our Bankruptcy attorneys will point out many possible red flags prior to filing your case. After all, we file hundreds of cases a year and hopefully this will be the only one you file in your lifetime. Shouldn’t you hire an attorney to make sure it is done right?