Debt Relief That Allows You to Keep Your Most Valued Assets
Not every person struggling with debt has a small income. Excessive debt simply means you owe more than what you are able to repay, and it can hit you regardless of your income. Even if you do not qualify for a Chapter 7, Chapter 13 might be an available option that can allow you to pay what you are able to pay after your expenses, rather than your excessive monthly minimum payments while still keeping some of your assets.
If you qualify, Chapter 13 bankruptcy is a great way to get relief from excessive debt. Serving clients throughout Colorado, Bishop & Associates, L.L.C. can help. Fort Collins bankruptcy attorney Leah Bishop provided valuable counsel and skilled advocacy for our clients, helping them through the entire bankruptcy process.
About Chapter 13 Bankruptcy
The main purpose of Chapter 13 bankruptcy is that you get relief from excessive debt while still retaining the assets that you can still afford. In a Chapter 13, the bankruptcy court will look at all of your income and living expenses to create a budget. Whatever income remains after your essential expenses are paid is considered "discretionary," and it will go to the trustee to repay your debts.
Although both Chapter 13 and Chapter 7 bankruptcy are focused on relief from unmanageable debt, Chapter 13 is distinguishable from Chapter 7 in many ways:
- You must qualify for Chapter 13 bankruptcy: Since Chapter 13 is more focused on debt reorganization, you will be asked to show that you can earn more than your monthly living expenses under the new plan, not including payments made to creditors for unsecured debts like credit cards, personal loans and medical bills.
- You will need to start making payments right away: When filing for a Chapter 13, you will be required to send in your first payment within 30 days from filing.
- You must continue making payments: You must make monthly payments in a timely fashion or you will be dismissed.
- You can still go back to a Chapter 7: Once you receive debt relief through a Chapter 13 bankruptcy plan, you can still convert this into a Chapter 7 if you qualify in the future.
The bankruptcy process is a little different with a Chapter 13, as well, in that Chapter 13 includes a confirmation with a judge before discharging your debts.
Contact a Colorado Bankruptcy Attorney for a Free Consultation
Perhaps you are facing serious debt and just want to know more about bankruptcy and why you should hire a good bankruptcy attorney. You can talk to a lawyer and learn more. Contact us for a free initial consultation with an experienced bankruptcy attorney
