Articles Posted in Chapter 7

The question often arises to what extent are divorce debts discharged in bankruptcy?A divorce often generates several different types of debts to a divorced person considering filing for bankruptcy. Chief among them are: Domestic Support Obligations The Bankruptcy Code exceptions to discharge of divorce debts are divided into two categories. One category is domestic support…

There is a new garnishment law in Colorado. For many years wages have been exempt to some extent in Colorado. An exemption means it cannot be taken by the judgment creditor or the bankruptcy trustee. Wage exemptions are crucial for bankruptcy purposes because the Colorado state exemptions are the only bankruptcy exemptions a Colorado resident…

How long after bankruptcy to qualify for a home mortgage? People are often concerned whether they will be able to purchase a home or qualify for a home loan after bankruptcy.The answer is not as long as you might think. It usually depends if the bankruptcy was a Chapter 7 liquidation or Chapter 13 payment…

Background Until now it has been extremely difficult to get rid of student loans in bankruptcy for most debtors. In most cases the debtor in bankruptcy must prove “undue hardship” on the debtor or the debtor’s dependents in the event the debt is not discharged. Most courts rely on the Brunner test to interpret undue…

Use of federal bankruptcy exemptions not permitted. See CRS § 13-54-107 Type of Property Amount of Exemption Homestead, mobile home, or manufactured home occupied as home by owner $75,000 or $105,000 if occupied by anelderly (60+) or disabled debtor or spouse Necessary wearing apparel $2,000 Watches, jewelry and articles of adornment $2,500 Personal library, family…

This blog discusses a debtor who wishes to reopen a closed bankruptcy case in order to amend schedules. Reopening Bankruptcy Cases to Claim Personal Injury Exemptions The 10 th Circuit Bankruptcy Appellate Panel recently considered when debtors could reopen closed cases in order to amend their schedules. See In re Mendoza, 595 B.R. 849 (B.A.P.…

How much time must elapse from a prior bankruptcy before filing a new bankruptcy? It depends on the prior bankruptcy chapter that was filed and the bankruptcy chapter one wishes to now file. Debtor Wishes to File a Chapter 7 Bankruptcy Under the United States Bankruptcy Code, the debtor must wait more than eight (8)…

What happens when someone transfers assets prior to filing bankruptcy? In prior articles we explored transfers within 90 days, two years, and four years prior to filing bankruptcy. This article explores transfers to a self-settled trust within ten years before filing bankruptcy. Transfers to a Self-Settled Trust Within Ten Years of Filing a Chapter 7…

What happens when someone transfers assets prior to filing bankruptcy? This article explores fraudulent transfers that take place within four years before filing bankruptcy. In prior articles we explored transfers within two years prior to filing bankruptcy. In a subsequent blog we will explore transfers to a self-settled trust within ten years of filing bankruptcy.…

What happens when a debtor does a transfer of assets prior to bankruptcy? This article explores fraudulent transfers that take place within two years before filing. In a prior article we explored preferential transfers prior to filing bankruptcy. In subsequent articles we will explore other fraudulent transfers prior to filing. Transfers or Obligations Incurred Within…