Unmanageable debts are one of the biggest problems of Americans today. If you are currently facing debt, like credit card debt, student loan debt, or other financial challenges, and you can’t see a way out, bankruptcy is a good option to relieve yourself from the stress of it. Aside from helping you get rid of your debt problems, you will also discover a brighter future as you begin your new financial journey.
Let our bankruptcy lawyers in Colorado Springs help you sort out your finances by getting you a fresh start.
What are the benefits of Bankruptcy?
If you are seeking debt relief, bankruptcy can do the following for you:
- It gives you a fresh financial start
- It reduces your loans
- It helps to stop creditor harassment
- It avoids property or a home foreclosure
- It prevents auto repossession
- It stops wage garnishment
How Do You Know if You Need to File a Bankruptcy Case Immediately?
Chapter 7 or Chapter 13 encourages you to file immediately especially if you are under the following circumstances:
- A wage or bank garnishment
- Levy by IRS
- Your home is being put up for sale
- Your car is about to be repossessed
- Your car is confiscated for parking tickets
- Your driver’s license is suspended for parking tickets, red light tickets, and similar offenses
What are the Types of Bankruptcy?
In the state of Colorado, USA, there are 3 types of bankruptcy as described by Chapter 7, Chapter 11, and Chapter 13.
Chapter 7 Bankruptcy is the most common type of bankruptcy in the state. It is where the debts are paid through the process of liquidating the assets of a person or a company and then the proceeds are given to the creditors.
Chapter 11 Bankruptcy, on the other hand, talks about the reorganization of debts. Under this law, companies are relieved from the debts but the assets are kept by them. This is an ideal option for companies that are willing to continue and recover from their unmanageable loans.
Finally, Chapter 13 Bankruptcy is another reorganization bankruptcy but it focuses on helping individuals rather than businesses. This is an alternative for people who are seeking to prevent property foreclosures and are willing to recover from their unmanageable debts.
Need Help with Chapter 7 Bankruptcy?
Dealing with cases wherein your creditor, liquidating trustee, trustee, bankruptcy court, or federal court sued you can be stressful. You don’t have to face a civil or bankruptcy litigation alone, Brighter Day Law is here to help you defend your case. We accept requests from defendants and plaintiffs who need lawyers in bankruptcy court according to Chapter 7. We also recommend and give preference actions in order to prevent preferential transfers and avoidance actions to prevent fraudulent transfers.
Our Colorado firm and lawyers are proactive, especially in bankruptcy filings and federal courts located in the El Paso, Teller, and Pueblo Counties in Colorado. In cases where there are no bankruptcy matters, our lawyers can help creditors file lawsuits that deal with business disputes including breach of contract, promissory notes, and import-export matters. In terms of arbitration cases before the American Arbitration Association (AAA) and JAMS, we can also help you.
We Can Help With Strategic Debt Settlement
Our bankruptcy attorneys are professional and knowledgeable enough to give you the best debt relief strategy. We use our legal wisdom, negotiation skills, and legal background to help you find the most effective solution. We understand that there is no fixed solution to debt settlement, which is why we make sure that our lawyers are using steps specific to client needs, including debt negotiation and litigation defense. We also provide legal advice compared to other non-attorney debt relief companies out there. With our law firm in Colorado Springs, you are guaranteed to work with lawyers who take Fair Debt Collection Practices Act seriously.
Helping You Get Discharged From Student Loans
In general, student loans are not on the list of debts that can be relived by Colorado bankruptcy laws. But considering the exceptions, we can refer to the provisions under Section 523 of Bankruptcy Code stating that an individual must be struggling from undue hardship so he/she can be discharged from such loans. Our law firm in Colorado has relieved many clients from student loans. If there is a possibility that you can be discharged, we help in initiating the process.
Can Bankruptcy Affect Your Credit Records?
Since bankruptcy plays a big role in your credit records, it can affect your credit by eliminating all your good history. Your bankruptcy record will most likely appear for at least 10 years and your future creditors and lenders will be able to see this record. You also need to disclose this matter when you are applying for a job and filling out documents related to medical and the government. Although you can always rebuild your credit history, your bankruptcy records need to be reported and disclosed as long as you are dealing with financial matters.
What Are The Best Practices During Bankruptcy?
While you are in bankruptcy, there are best practices that you can do to avoid impeding the bankruptcy process.
First, remember not to make financial decisions that will make your creditors, trustees, judges, and or the court think that your bankruptcy case is fraudulent. You have to be honest all the time.
Next, if you need to keep your tax returns updated especially if you are availing of your options under Chapter 7 or Chapter 13 of the Colorado bankruptcy laws. You should be able to file properly in the previous four tax years.
Also, you must keep your secured debt payments timely and full all the time. This will help you avoid facing challenges during the bankruptcy process, especially if you want to retain the property you are paying.
Contact Us Now
Reducing the damage of unmanageable debts can save your financial future. If you are looking for someone to help you relieve your financial stress, don’t hesitate to contact the Brighter Day Law and talk to our Colorado bankruptcy lawyers. Let’s schedule a consultation to better assess the options you have. We will definitely help you decide the best course of action in relation to your Chapter 7 bankruptcy.