Gauss Law Firm- Denver Bankruptcy Lawyers
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Chapter 7 Bankruptcy


Overview of Chapter 7 Bankruptcy


In a Chapter 7 bankruptcy, you wipe out all of your debt and start over financially. Chapter 7 is sometimes called a “liquidation” bankruptcy. In chapter 7, a government employee called the trustee will review your bankruptcy forms and collect any non-exempt assets to be sold in order to pay creditors. In Colorado, there are “exemptions” which protect some of debtor’s property from being sold. Some of these exemptions are very generous, for example a person can keep an unlimited amount of their retirement funds and still wipe out most of their debts. Therefore in the vast majority of cases, chapter 7 bankruptcy wipes out the person’s debt and the person does not have to give up any property.


Debts such as mortgages and car loans can survive chapter 7 bankruptcy if you want to keep those items. There are some debts which can not be eliminated in Chapter 7, such as most tax debts, debts for most student loans, and alimony/child support obligations.

Preparation is the key to success in any type of legal matter. We have the bankruptcy experience necessary to prepare your case quickly and get it done right. We also have the expertise to determine whether chapter 7 is right for you, and suggest alternate bankruptcy avenues where appropriate.


 

Chapter 13 Bankruptcy


Overview of Chapter 13 Bankruptcy


Chapter 13 bankruptcy allows a person or couple to repay all or a portion of their debt under the supervision of the bankruptcy court. A good way to think of chapter 13 is as court ordered consumer credit counseling. If you commit to paying as much as you can (usually for three or five years) on your unsecured debts such as credit cards, then the court orders that the rest of your debt is wiped out.


A person who files for Chapter 13 relief must submit a plan to the court for repayment of debts. There are many requirements for this plan, and a person should seek legal help if they want to file for Chapter 13 relief. Creditors are prohibited from collecting on debts by the filing of a Chapter 13 case, and in many cases they are forced to accept pennies on the dollar in the debtor’s plan.


There are many differences between what is possible in Chapter 13 cases and what is possible in Chapter 7 cases. Usually persons choose to file Chapter 13 cases in order to protect property that could not be kept in a chapter 7, or they choose Chapter 13 because it provides more opportunity to rescue a home that is in serious default.


Preparation is the key to success in any type of legal matter. We have the bankruptcy experience necessary to prepare your case quickly and get it done right. We also have the expertise to determine whether chapter 13 or 7 is right for you, and we will suggest alternate bankruptcy and non-bankruptcy avenues where appropriate.