Colorado Consumer Bankruptcy Attorneys
Chapter 7 or Chapter 13 for People in Debt: Call 720-809-8310
If you are having trouble falling asleep each night because you can’t stop thinking about your consumer debt, then it is time to think about filing for bankruptcy. Jorgensen, Brownell & Pepin, P.C. is here to show you that bankruptcy does not need to be the intimidating process that is often shown in entertainment media. When done correctly, bankruptcy can eliminate your debt and your stress without giving up your valued property.
Our team has decades of combined legal experience to put to use when working on your consumer bankruptcy case. After reviewing your finances, income, and debt, we can determine if you should consider a Chapter 7, 11, 12 or Chapter 13 bankruptcy filing. We do as much as we can on your behalf so you can continue to focus on other matters in your life and, hopefully, feel less overwhelmed by your debt.
Different types of consumer debts we can try to eliminate are:
- Credit card bills
- Medical bills
- Personal loans
- Utility bills
- Auto loans
- Personal Guarantees
- Student Loans (in hardship cases)
- Interest and penalties on Tax Debt
- Personal Injury Claims
Call (720) 809-8310 to speak with a consumer bankruptcy lawyer today. We have law offices throughout Colorado for your convenience.
Use Chapter 7 for Significant Debt
There are few worse feelings than knowing that you are living with significant debt that you cannot pay no matter how hard you try. Each month, you pay off only the interest on your debt but the bulk of it remains, effectively turning your loan into an indefinite one. There is a better way to clear your finances, though: Chapter 7 bankruptcy.
There are two primary forms of consumer bankruptcy filings: Chapter 7 and Chapter 13. Also called liquidation bankruptcy, Chapter 7 is often considered the more intensive one because it attempts to remove all possible dischargeable debts at once, including both unsecured debts and secured debts with collateral and liens. By the time your Chapter 7 bankruptcy filing is completed, there could be little to no remaining debt at all, but you may also forfeit some of your personal property and assets as collateral. However, Colorado bankruptcy exemptions could allow you to protect much of your property from repossession or collections.
Bankruptcy exemptions cover a range of assets and properties, such as:
- Real estate property
- Insurance benefits policies
- Pension accounts
- Food, clothing, and household goods
- Public benefits
- Equipment used in your occupation
In order for property to be exempt, it must fall under a certain value of equity. This value is adjusted every few years as inflation and the average cost of living changes, too. As your Colorado consumer bankruptcy lawyers, it will be our role to walk you through a Chapter 7 bankruptcy filing with the goal of discharging as much debt and keeping as much personal property through exemptions as possible.
Use Chapter 13 to Protect Your Assets
Chapter 13 bankruptcy for consumers is noticeably different than Chapter 7. Rather than trying to erase as much dischargeable debt as possible in one filing, it uses a multistep process to try to find an amicable middle ground between yourself and your lenders.
The typical Chapter 13 bankruptcy process involves:
- Reviewing your debt and income to determine the extent of your financial disparity.
- Negotiating with debtors to reduce your debt to reasonable amounts.
- Creating a 3- or 5-year plan to repay as much of the remaining reduced debt as possible.
- Making an honest effort to limit spending and stay on pace with the repayment plan.
- Discharging any remaining debt after the repayment plan ends.
- Cramming Down the amount of secured debt to the value of the property
You might understandably wonder why you would want to repay any of your consumer debt if Chapter 7 is an option. The benefits of a successful Chapter 13 bankruptcy are you risk less of your property to repossession due to liens, and you are likely to do less damage to your credit score. If it appears that you can repay a good portion of your debt with some loan adjustments and debt reduction, then we should consider Chapter 13 first.
There is no better time than now to get Jorgensen, Brownell & Pepin, P.C. on your side to start considering your consumer bankruptcy options. You have your options to end your daily financial struggles, including alternative debt relief options that do not rely on a bankruptcy filing. To get a clear picture of what you can probably do to mitigate your consumer debt and start breathing easier again, do not hesitate to contact us at the moment you need us.
Our Colorado consumer bankruptcy lawyers are standing by. Dial (720) 809-8310 now.
I am so grateful- D.H.
The service from James was professional and resulted in a satisfactory outcome.- T.W.
What a fantastic person to have at the front desk.- M.H.
We will use him again should the need arise.- L.J.
Thank you for your support and professionalism and never giving up.- Joan