Chapter 7 Bankruptcy Lawyer in Aurora
Fast, Professional Service in Denver & Adams County
When you visit Consumer Law Pro for the first time, we can discuss which type of bankruptcy offers the best protection of your assets while discharging all your eligible debts. In many cases, we recommend Chapter 7 bankruptcy because of its affordability and immediate relief. Rather than organizing debt into a repayment plan, Chapter 7 liquidates nonexempt assets and reduces or eliminates unsecured debt.
When you work with our Aurora Chapter 7 bankruptcy attorney, you can benefit from:
- A bankruptcy interview and simple online questionnaire
- Answers to any questions you may have throughout the entire process
- Easy-to-follow instructions, explaining how to gather and submit the documents needed to complete your bankruptcy petition
If you have unmanageable debt, Chapter 7 bankruptcy may be the long-term solution you need. Call Consumer Law Pro at (303) 622-3833 to learn more during a free case evaluation. We are fully prepared to help you regain control over your financial future.
Eligibility for Chapter 7 Bankruptcy
Many people ask whether they are eligible for Chapter 7. Assuming you do not have a prior bankruptcy filing, your eligibility to file Chapter 7 is based primarily on the “means test.” Like it sounds, the means test measures your financial ability to repay your debt, as is required in a Chapter 13 reorganization. The intent behind the test is to treat similarly situated debtors equally and prevent some high-income debtors from qualifying. If you are below the median income for your household size and location, you should qualify.
If you are above the median income, you may still qualify, especially if you have a domestic support obligations or child care expenses. Many factors go into the analysis of whether an above-median income debtor will qualify.
Even if you qualify for Chapter 7, it may not be the most appropriate solution. If you have significant debt that would not be discharged in a Chapter 7 (e.g. tax debt), or you have high-value assets that the trustee would liquidate, Chapter 13 may be a better option. We take great care to assess each client’s situation before recommending a personalized strategy.
Under Chapter 7 of the Bankruptcy Code, you must have attended and completed a debt counseling course no more than 6 months before filing your petition. In addition, you will be required to complete a financial education course prior to the discharge of your debts.
In Chapter 7 bankruptcy, an asset is either exempt or nonexempt. 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. This amount cannot be used to repay your creditors.
Nonexempt assets, on the other hand, are not protected by state exemption statutes (note that Colorado has opted out of the federal exemptions). You must relinquish any nonexempt assets to the bankruptcy trustee, who will then sell the property and use the proceeds to pay your creditors. In return, you will receive a Chapter 7 discharge of certain eligible debts. Eligible debts generally include unsecured debt, such as credit card debt, personal or payday loans, medical or dental bills, utility bills, back rent, department store bills, and more.
Fortunately, Colorado has very generous exemption statutes. In most cases, consumers are allowed to keep all or most of their assets. It is not unusual, however, for someone to lose significant assets because they did not hire an attorney and did not fully understand exemption laws. That is why we highly recommend that you bring your case to our qualified attorney at Consumer Law Pro.
Reasonable Fixed Fees for Chapter 7
Streamlined Bankruptcy Process
Direct Access to Your Attorney
Thousands of Successful Chapter 7 & 13 Case Filings