Finding it difficult to make the ends meet? Then bankruptcy can help to improve your financial situation. No matter if you are living in Denver, Aurora, Englewood, Centennial, Littleton, Lakewood or other surrounding cities. Denver bankruptcy laws can help you overcome your financial difficulties. Read on to find the bankruptcy laws in Denver, Colorado.
Denver Bankruptcy Laws
Financial problems can happen to anyone, if they happened to you, bankruptcy might be an option to overcome them. But you need to understand the basics first, including the type of bankruptcy (chapter 7 or chapter 13) that suits your needs. Besides, you should also know about the governing laws while opting for a Denver, Co bankruptcy. Given is the list of all the essential information that you should know before filing bankruptcy in Colorado.
Denver Colorado Bankruptcy Exemption Laws
People filing for bankruptcy have this major concern that whether they’ll be able to keep their assets and property. In fact, you can keep your property and it solely depends upon your state laws. If you are living in Denver, Littleton or anywhere in Colorado, you are eligible to exempt some assets during bankruptcy. Colorado has its own list of exempted assets for bankruptcy. And the bankruptcy trustee will not be able to take them and liquidate to benefit your creditor. You can check the complete list of Colorado bankruptcy exemptions here.
However, what will happen to the nonexempt assets depend on the type of bankruptcy you filed for. Generally, these assets get liquidated to pay back your debt in chapter 7 bankruptcy. On the contrary, none of your nonexempt property is taken over in chapter 13 bankruptcy. However, you are bound to pay your creditors through a repayment plan.
Which States Exemption Laws Apply in Your Bankruptcy
If you are living in Denver, Lakewood or Centennial and want to apply for Colorado bankruptcy. Then you should first figure out whether Denver bankruptcy laws apply in your bankruptcy or not.
The rule is simple, if you are a resident here in the Denver area for past two years prior to bankruptcy filing. Then you qualify for Colorado bankruptcy exemption. Or if you were not domiciled here for this time period and also stayed at other states. Then the rule of 180 days will apply. According to this rule, that state’s law will apply where you’ve spent majority of 180 days preceding the two-year period.
These rules are created so that individuals may not take advantage of choosing a state with generous exemption laws. However, if you find yourself ineligible for your state’s exemption system. Then you might be able to apply for federal bankruptcy exemptions as well.
Bankruptcy Means Test for Chapter 7
The means test is helps check your eligibility for filing a chapter 7 bankruptcy in Colorado. The residents of Englewood, Denver, Aurora or other neighboring cities must pass this test before applying for chapter 7 bankruptcy. The test simply tells that your family income is less than the median income of Colorado state. And you can apply for chapter 7. In contrast, if things are turn out to be the other way round, you cannot apply for it. Use this Colorado means test calculator to check your eligibility. Also, a similar calculation can be done for a chapter 13 payment plan.
Debtor Education in Colorado
No matter which city of Colorado you are living in. You should complete two types of debtor education courses to successfully complete your bankruptcy. One must be done before filing and the other after getting a discharge. Each state has its own list of education providers approved by the U.S. government. In fact, you can also find a list of approved debtor education agencies for Colorado on the U.S. trustee website.
Bankruptcy Court in Colorado And Official Website
The filers in Denver, Littleton, Centennial, Englewood, Aurora, Lakewood, and other surrounding cities can file bankruptcy at U.S. Bankruptcy Court for the District of Colorado, Custom house 721, street 19 Denver, Colorado 80202 (Phone: 720-904-7300). Also, the basic instructions, as well as the local rules, are available on the official website: http://www.cob.uscourts.gov.
Consult with An Experienced Bankruptcy Attorney
Before filing for bankruptcy, you should consider talking to a knowledgeable bankruptcy attorney in Colorado. Because it’s always better to let the expert handle your legal matters. In this way, you’ll get a professional bankruptcy representation which will also help to protect your interests. Denver bankruptcy laws can get complicated so it is best to use a trusted attorney. Schedule a free consultation and take your first step towards a fresh start!