Preparation is the Key to Success in Any Legal Matter.
Basic Information, answers to frequently asked questions.
The Bankruptcy laws allow the debtor to keep a certain amount of property so that the debtor can begin his or her financial life again with the basics needed to get started. For example, in Colorado, debtors are allowed to keep $3,000 worth of household items such as furniture, appliances, etc. The exemption is $6,000 for a married couple who file jointly for Bankruptcy. Even though bankruptcy is a Federal Law, the exemptions are set by state law here in Colorado. If you have not been living in Colorado for the two years prior to your case filing date, then another state’s law( where you were living, usually) or the Federal exemptions must be used.
In Colorado, a person or couple can exempt $75,000.00 of equity from the bankruptcy estate in a Chapter 7 case. (for persons older than 60, the exemption is $105,000) What this means is that, in general, you can keep the house you live in when the case is filed, so long as you do not have more than the stated limit of equity in that home.
Secured creditors such as your mortgage holder(s) do have a right to regular payments in a chapter 7 case. If you are seriously behind on your mortgage payments, it may still be possible to save your home by filing a chapter 13 case. In a chapter 13 case mortgage arrears can be paid through the plan.
It is always best to seek legal advice well before the foreclosure process has started. The earlier you take control of your finances by contacting a bankruptcy attorney, the easier it will be for an attorney to help repair the situation. In many cases, the foreclosure on your home can be stopped by a timely bankruptcy filing.
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.
An individual can keep up to $7,500 worth of equity in up to 2 (two) cars. A couple filing jointly can keep $15,000 worth of car equity ($7,500 X 2 in four cars). Elderly persons, which is defined as 60 years or older can keep $10,000 each of equity in a car. So unless you own very valuable cars where there are no loans, you can probably keep your car away from your bankruptcy trustee. When you have a car loan, you will have to continue to pay the loan to keep the car and your lawyer and you will have to discuss reaffirmation agreements. I have provided blog entries on the main page discussing reaffirmation agreements, please see those to read about them.