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:
- You must have taken a credit counseling course within the last 180 days.
- 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.
- 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.