Things to Consider in Filing for Bankruptcy
If you are considering filing for bankruptcy there are some key points that should be evaluated first. For instance, what is the status of your financial situation? Some questions to consider are:
- Are you buying necessities on credit cards?
- Are you unable to pay, or only able to make the minimum payments for credit cards?
- Are your credit cards maxed out (have you utilized all of your available credit? )
- Are debt and bill collectors contacting you, and have you considered debt consolidation?
Depending on your answers and your available assets, bankruptcy may be your best opportunity to “start fresh.” However, bankruptcy may not be necessary. There may be opportunities to work with your current creditors to restructure your payments or settle your debts using LONG & LONG P.C. and avoid bankruptcy altogether. Take note, however, that forgiven debt outside of bankruptcy can be taxed to the borrower as income. This could be an unwelcome surprise when you file your taxes. On the other hand, debt that is discharged in bankruptcy is not taxable income.
Our Centennial Bankruptcy Lawyer location, just southwest of the I-25 and Arapahoe Road exit, is convenient from anywhere along the Front Range with free parking and extended hours. We are often available to meet on weekends as well as on weekdays and evenings. As a Denver Bankruptcy Lawyer and law firm, we represent clients throughout Colorado including the Denver metro area and Front Range cities of Denver, Aurora, Lakewood, Arvada, Littleton, Castle Rock, Centennial, Parker, Fort Collins, and Colorado Springs
At your initial consultation you should be prepared to discuss your financial details. So, gather a list of your unpaid debts, current paystubs or income, and your monthly expenses. Multiple factors go into determining if you should file bankruptcy, what Bankruptcy Chapter to file (usually Chapter 7 Bankruptcy or Chapter 13 Bankruptcy), should both spouses file jointly or just one, strategies leading up to filing, and when to file. Everyone’s financial situation is unique.
The Bankruptcy Code is complex, and you will need proper legal advice. For example, there are some debts which are not dischargeable under Chapter 7 or Chapter 13 of the bankruptcy code; if your main objective is to discharge certain debts it is important to understand that some of those debts (such as income taxes, student loans, child support and alimony) may still exist after the bankruptcy process.
Filing for Bankruptcy
There are two ways to file for bankruptcy.
The first is more common which is a voluntary petition. This involves you affirmatively filing in the bankruptcy court under either Chapter 7 or Chapter 13 and undergoing the procedures while receiving the protections afforded by the bankruptcy code.
The second is when your creditor(s) petition the bankruptcy court and order you to declare bankruptcy.
The Automatic Stay
One of the most important aspects of a bankruptcy is the legal effect of an automatic stay. This prevents further collection efforts, wage garnishment, and foreclosure or repossession proceedings (if they have not yet been completed). This is one of the most important considerations when filing.
You must file before any foreclosure sale or repossession sale takes place if you wish to keep the property. Depending on which chapter you file under, you may be able to keep your house and other property during the repayment period which is overseen by the bankruptcy trustee.
Additionally, preventing your creditors from garnishing your wages or pursuing any collection actions against you will give you time to organize your affairs and proceed through the bankruptcy process with oversight without the barrage of phone calls or collection threats.
Small Business Bankruptcy
Persons who own their own business are industrious risk-takers. It is not unusual that the industry you are in is volatile, with shifts in demand. This is not your fault. If you find yourself unable to pay the bills, then bankruptcy may be the solution. Oftentimes, particularly in service industries, bankruptcy allows you to continue your business or trade. A business owner is usually personally liable for the major debts of the business. A business bankruptcy may involve a personal bankruptcy as well to get a fresh start.
A business bankruptcy, or personal bankruptcy involving a business, is more complex. This may involve a winding up of the business, releasing employees, paying taxes and wages, before closing a business. For this reason, you should hire an experienced Denver Bankruptcy Lawyer like LONG & LONG P.C.
Creditors and Bankruptcy
Usually, the first time a creditor becomes aware of a bankruptcy by its customer is when they receive a notice in the mail from the U.S. Bankruptcy Court. In a business-related bankruptcy time is of the essence as the creditor has deadlines within which to assert its interest in the bankruptcy estate. Interests may include an administrative claim for goods and services provided within twenty days of the bankruptcy filing, or a claim to reclaim goods provided within forty-five days of the bankruptcy filing. The debt may have been obtained through actual fraud entitling the creditor to claim the debt is not dischargeable.
Hire a Denver Metro Area Bankruptcy Attorney with Experience
Navigating a bankruptcy and the decision of whether or not to file requires experienced and practiced attorneys. As a former trustee for the U.S. Bankruptcy Court, with over thirty-five years’ experience, Attorney Martin Long is an expert in the industry with decades of experience in Bankruptcy Law in Colorado and also serving Aurora, Centennial, Highlands Ranch, Denver, Littleton, Castle Rock, Colorado and the Denver metro area and Front Range. For help with your financial matter, call LONG & LONG P.C. now for a free initial consultation at 303-832-2655 or go to www.denverbankruptcylawyer.net and make a consultation request.
LONG & LONG P.C.
6860 S. Yosemite Court
Suite 2000
Centennial, Colorado 80112
303-832-2655
www.denverbankruptcylawyer.net
