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Chapter 7 Qualifiers in Littleton, Aurora and Centennial

Learn more about Chapter 7 bankruptcy qualifiers in Colorado.

Aurora Chapter 7 Bankruptcy: Liquidation Bankruptcy

The “liquidation” bankruptcy, known formally as Chapter 7 in cities like Aurora, Centennial and Littleton, is beneficial to the person filing because it cancels and erases debt. The trade-off is that certain nonexempt assets may be taken and sold by the trustee to pay creditors.

Centennial Chapter 7 Bankruptcy: Requirements for Filing Chapter 7 Bankruptcy

The following are the requirements for filing a chapter 7 bankruptcy in Aurora, Centennial and Littleton:

  1. You must have taken a credit counseling course within the last 180 days.
  2. You must not have received a Chapter 7 discharge within the last eight years or a Chapter 13 discharge in the last six years in which less than 70% of your unsecured debt was paid in the plan.
  3. You must meet the “means test.”  There are two ways to meet the “means test.”  If your income is below the Colorado median income ($86,377 for a family of four in 2015), you automatically meet the means test.  Even if you do not meet the automatic test, you may still be eligible for Chapter 7 if your “disposable income” is less than a certain amount.  Calculating “disposable income” can be enormously complicated and you are advised to retain experienced bankruptcy counsel to assist you.

Littleton Chapter 7 Qualifiers are Complex: It is Wise to Consult a Littleton Bankruptcy Lawyer

If you are determining whether or not you qualify for Chapter 7 bankruptcy in Colorado, don’t hesitate to contact an experienced Littleton or Aurora Chapter 7 bankruptcy attorney who can take a look at your financial situation. The bankruptcy code is complex and confusing. Working with a Littleton or Aurora Chapter 7 bankruptcy lawyer who has a thorough knowledge of the law may end up saving you money at the end of the day.

If you have any questions about chapter 7 qualifiers in Aurora, Denver or Lone Tree, Colorado, contact bankruptcy attorney Barry Arrington for a free initial consultation. He will give you a good picture of what to expect when you file. Contact him at 303-205-7870, or submit the “Get Help Now” form to begin your journey towards financial freedom.