Filing for Chapter 7 Bankruptcy in Denver
With a Chapter 7 bankruptcy filing, most debts are discharged in a quick and simple manner. Fast, easy, and convenient, Chapter 7 is often the preferred chapter of filing for those facing bankruptcy.
If you are considering chapter 7 bankruptcy or simply want to learn more about your options, Benham Law, Inc. is here to help. Contact us today in South Metro Denver for a free consultation!
Advantages of Chapter 7 Bankruptcy
The advantages of filing for Chapter 7 bankruptcy include:
- The elimination of most forms of debt without a repayment plan
- Ability to preserve and keep assets like cars, your home, personal belongings, and retirement accounts
- No limitations on the amount of debt that can be discharged
- Rapid discharge of debt; the whole process usually lasts approximately three months
Whether you’d like to see results quickly or simply have no way to keep up with your bills, Chapter 7 bankruptcy can help you achieve a debt-free future.
What Are the Eligibility Requirements for Chapter 7?
In order to qualify for Chapter 7 bankruptcy in the State of Colorado, you must either have an income lower than the median income in the State of Colorado or, if your income is higher, you must pass the means test. For a family of four, the median income is currently $83,330.
The means test examines your income and your debt to determine whether you are able to pay anything back to creditors. The means test is very complicated, even for attorneys, and is best calculated by an experienced bankruptcy attorney, like those at Benham Law.
You’re exempt from the means test if your primary debt is not consumer debt, if you’re a disabled veteran, or if you accrued debt primarily during active duty.
What Happens in Chapter 7 Bankruptcy Proceedings?
Before you begin filling out paperwork, schedule your free consultation with Benham Law, Inc. to make sure Chapter 7 is the right choice for you. There are countless factors that must be considered before deciding to file any chapter of bankruptcy, and an attorney at BenhamLaw can help you assess all those factors.
Before you can file for Chapter 7 bankruptcy, you will first be required to complete a credit counseling course online or by phone. Your attorney will help you prepare official bankruptcy forms that list all of your property and debts to file with the court. Your attorney will also provide the trustee with your most recent income taxes.
After you file, you and your attorney will attend a meeting of creditors where the trustee will ask you questions about your case. These meetings are very brief and take place in a casual setting, unlike a formal courtroom. If the trustee determines that you have non-exempt or non-protected assets, he or she will liquidate those assets after the meeting and use the proceeds to pay some of your debt. If the trustee determines that you don’t have any non-exempt assets to liquidate, the case proceeds to the final discharge stage. Finally, you will be required to complete a final budget counseling session before the court will issue your final discharge order. The discharge order usually enters within 60 to 75 days of the meeting of creditors.