Wondering which debts are or aren’t dischargeable in a Chapter 13 bankruptcy in Centennial and across Colorado can be complex. It is always wise to consult an experienced bankruptcy attorney to make sure you get the most financial relief from your Chapter 13 bankruptcy. Don’t risk making a costly mistake by trying to go through the filing process alone and figuring out the complexities of bankruptcy by yourself.
What is a Chapter 13 Bankruptcy in Littleton and Across Colorado?
A Chapter 13 bankruptcy in Littleton, Douglas County and across Colorado is a “reorganization” bankruptcy. This means you will set up a repayment plan over a period of time to pay off your debt. Thankfully, in most cases, the majority of your debt can be discharged in a Chapter 13 bankruptcy. The most common debts that aren’t commonly discharged, however, include back taxes, student loans, child support or alimony. You should always consult an experienced Chapter 13 bankruptcy attorney if considering a Chapter 13 bankruptcy anywhere in Colorado.
Discharging Unsecured Debts in an Aurora Chapter 13 Bankruptcy
Generally, in a Chapter 13 bankruptcy in Aurora, Greenwood Village and everywhere else in Colorado, most types of nonpriority unsecured debts can be discharged. Some of these include medical bills, personal loans, utility bills or credit card debt.
Are Secured Debts Dischargeable in a Parker Chapter 13 Bankruptcy?
Always consult an experienced lawyer to be sure which debts are discharged in your bankruptcy.
Typically, the answer is no. But, there are options available to you to help you find financial relief. For example, if you have a lien (a second mortgage, for example) in Parker or Castle Rock, it is considered a secured debt. If you miss your mortgage payments, that property could be foreclosed on. Fortunately, in a Chapter 13 bankruptcy, lien stripping may be an option for you. With lien stripping, your second mortgage will become an unsecured debt and the lien will be removed. However, you are only able to strip a second mortgage if your first mortgage is greater than the property value. Furthermore, you may “cram down” a secured debt. A cramdown in a Chapter 13 bankruptcy means you can pay the value of the property that a debt is secured by, instead of the original loan amount. Most people use cramdowns with car loans. However, like many other aspects of a Chapter 13 bankruptcy, you must follow guidelines before being able to use a cramdown. Talk to knowledgeable bankruptcy lawyer Barry Arrington to learn more.
Dischargeable Debts in a Chapter 13 Bankruptcy Questions? Call Barry
If you have more questions about which debts are discharged in a Chapter 13 bankruptcy in Colorado, contact Chapter 13 bankruptcy attorney Barry Arrington for more information. As said before, navigating through a bankruptcy alone is difficult. The United States Bankruptcy Court actually advises against it. Contact Christian bankruptcy lawyer Barry Arrington today to set up a free initial consultation to begin your journey to financial freedom.
If you have more questions about discharging debt in a Chapter 13 bankruptcy in Colorado, call bankruptcy lawyer Barry Arrington today to request your free initial consultation meeting at 303-205-7870. Or, submit the “Get Help Now” form to begin your journey toward financial freedom.