Chapter 13 is limited to consumers who are making regular income but who are unable to repay their debt. Chapter 13 allows such individuals to repay their debts in installments over a period of 3 to 5 years. A consumer may only file for Chapter 13 if their debts do not exceed certain dollar amounts.

• Calculate Future Income

  Consumers who wish to pursue filing under Chapter 13 must calculate their future income from all sources including, commissions, wages, childd support, spousal support, social security, workers compensation, unemployment, disability benefits, retirement, and dividends.

• Develop Repayment Plan

  The consumer must determine the amount of income available to repay debts by subtracting normal living expenses from their projected income. The amount of the consumer's income remaining, after normal living expenses are subtracted, is the maximum amount available to repay debts pursuant to a three or five year plan. If the individual's income is insufficient to repay his debts in full over three to five years, the individual may be eligible for a partial payment plan, aka "best efforts" plan. Under the partial repayment plan, the consumer repays his debts up to the amount that his income will allow. Once the plan is completed, the remaining portion of his debts will be discharged. The benefit of a repayment plan is that it allows a consumer to make smaller more manageable payments, thereby preventing garnishments by certain prepetition creditors so long as the plan is followed.

• Not all Debts are discharged under Chapter 13

  Only those debts provided for under the plan will be discharged. If the debtor left any creditors out of the plan, those debts will remain after the plan is completed. There are other debts which will not be discharged under Chapter 13 and these may include education loans; spousal and child support; drunken driving fines and restitution; criminal fines and restitution; and certain long-term obligations, such as real estate mortgages. An attorney experienced in bankruptcy law can explain which debts are eliminated as a result of a Chapter 13 discharge and which will remain.

• Result of a Salary Increase during payment plan

  It is possible that a client's income will increase during the repayment period and a determination needs to be made of what to do with the additional income. An attorney will provide guidance on how to proceed so as to best protect your assets.

If you have unmanageable debt, you may be qualified to file a Chapter 7 bankruptcy. The benefit of a chapter 7 bankruptcy is that is allows consumers to discharge their debt without making payments. In 2005 the United States Bankruptcy Code changed the filing requirements for individuals seeking to file for a chapter 7 bankruptcy.

• Means Test

  If your income for the last six months does NOT exceed a certain level based on your family size, you will not be required to take the Means test for eligibility. If your income exceeds a certain level and you are required to undergo means testing, your attorney will explain how to proceed.

• Credit Counseling

  Consumers filing under chapter 7 of the bankruptcy code must have attended and completed a debt counseling course within the six months preceding the filing date of their petition. In addition, you will be required to complete a financial education course prior to discharge of your debts.

• Certain Nonexempt property converted to cash

  In most cases, a debtor will have few, if any, nonexempt assets. Nonexempt assets are those assets which are not protected by the State exemption statutes (note that Colorado has opted out of the Federal Exemptions). If the client has nonexempt assets (unprotected assets) he/she must relinquish those assets to the bankruptcy trustee, who will then sell the property, and use the proceeds to pay the debtor's creditors. In return, the debtor receives a Chapter 7 discharge of certain eligible debts, pays the filing fee, completes financial management courses and obeys the court's directives.

  • Colorado has very generous exemption statutes, and in most cases, a consumer will be allowed to keep all or most of his/her assets.
  • Exemptions are protected allowances for the value in certain assets. For example, a homestead exemption protects the equity you have in your home, up to a certain value. It is not unusual for someone who is representing their own bankruptcy filing to lose significant assets because they were unaware of how to proceed under the bankruptcy code.

Bankruptcy Fees

We encourage you not to choose an attorney based on price.
When it comes to filing for bankruptcy, we understand the temptation to find the most affordable attorney. Although our fees are competitive, we do not charge or advertise the lowest rates in Denver. The firms advertising the lowest rates rarely charge such a low price and if they do quote you such a low price, you should be very cautious. The maxim: "you get what you pay for" is no less applicable to hiring an attorney.  We prefer to charge a fair price, based on industry standards, while taking on fewer cases. Our clients are often surprised by how available their attorney is to address their concerns both before and after they have filed bankruptcy. A lot can go wrong when it comes to filing bankruptcy. We have never had a client's case dismissed for ineligibility and we are often able to save our clients money in a liquidation. Most of our cases are 'no asset' cases, meaning our clients have been able to keep all of their personal property after filing a chapter 7.   

When people know that filing bankruptcy is inevitable and have consulted with an attorney regarding their eligibility to qualify, it is usually advisable that they pay their attorney's  fees with money that might otherwise have gone to pay unsecured creditors. It is better to pay for good legal representation rather than continue to pay unsecured debt that is going to be discharged in a chapter 7 bankruptcy or re-structured in a chapter 13.

Filing bankruptcy is a serious matter, we suggest you contact an attorney you feel comfortable working with rather than go it alone. The majority of pro se bankruptcy petitions are dismissed for failure to follow the rules and there are implications associated with repeat filing.

The Bankruptcy Court charges a filing fee of $299.00 for a Chapter 7 case, and $274.00 for a Chapter 13 case. There is a small additional fee for mandatory pre and post credit counseling.

Automatic stay

In most cases the automatic stay will go into effect immediately upon filing your case with the bankruptcy court. The automatic stay prevents creditors from taking any act to collect on your debt. If you have filed for bankruptcy in the past, your attorney will explain the effect this may have on the duration of the automatic stay in your case.

Jurisdiction

Your case is filed in the District where you have resided or have your domicile (or for a business, its principal place of business) for the greater part of the 180 day period prior to the date your case is filed. All of the paperwork necessary to file your case will be filed electronically. Whether you live in Denver or a remote location such as Durango we can file your case from our office. This allows us to serve clients throughout Colorado at reasonable rates.

 The information provided on this website is for informational purposes only and must not be taken for legal advise.