Chapter 7 Bankruptcy

DENVER CHAPTER 7 BANKRUPTCY ATTORNEY

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Important Things to Know

Bankruptcy is a word that carries many negative connotations, however Chapter 7 bankruptcy is in fact a solution, rather than a problem. Long & Long P.C. helps both individuals and businesses find relief from debt and take control of their financial futures by taking advantage of the protections afforded under bankruptcy law. Our bankruptcy lawyers work tirelessly for clients–with convenient offices in downtown Denver and at I-25 and Arapahoe in Centennial, Colorado. Contact us today to learn whether chapter 7 bankruptcy would be a reasonable solution for you or your business.

How Chapter 7 Can Work For You

Chapter 7 is designed for debtors facing financial difficulty who do not have the means to pay their existing debts. In many cases, this type of bankruptcy can be triggered by an adverse scenario — like divorce, illness, unemployment, student loans, or an unexpected lawsuit. These circumstances will often lead to assets being seized — which is why it is extremely important to hire an experienced lawyer who can protect your assets. If you meet any of the following criteria, Chapter 7 bankruptcy may be the best solution for you if:

  • You are unable to pay high credit card debt or medical bills.
  • You have repossession deficiencies on vehicle loans.
  • You are losing income because of wage garnishment.
  • You are dealing with harassment or threats of lawsuits from creditors.

In Chapter 7 bankruptcy, a trustee will look to gather and sell certain non-exempt assets to pay creditors — in accordance with the provisions of the U.S. Bankruptcy Code. In most cases, you will keep your home and cars, so long as you keep making the monthly payments.

It can be comforting to know that the debtor is allowed to keep certain “exempt” property. As bankruptcy experts, we can evaluate your unique scenario to determine whether your assets are exempt or nonexempt, and ultimately, whether Chapter 7, or another solution would be the best fit. We will also strategize with you to maximize the exempt assets you keep-such as IRAs or other retirement assets.

Chapter 7: For Businesses

There are many scenarios where businesses, too can benefit from Chapter 7. Specifically, chapter 7 applies when a business which can no longer carry on operations and meet its financial obligations. Filing will both wind up operations and put creditors on notice that the business either does not have the assets, or ability to pay its debts. This process can save an insolvent business the time, expense and stress of enduring multiple lawsuits that might otherwise be filed creditors.

Filing chapter 7 as a business can be both involved and complex. A lawyer is critical to assist insolvent businesses with both preparation and filing to petition in the appropriate jurisdiction, along with ensuring all required schedules and statements are accounted for. We also represent our clients through the 341 creditors’ meeting and debtor examination, providing advice and counsel throughout the process. For business owners filing a Chapter 7 consumer bankruptcy, you may be able to keep your business and avoid the bankruptcy of your business.

Contact A Chapter 7 Bankruptcy Lawyer In Denver Today

If you are facing financial difficulties and mounting debt, we can help restore you to positive financial health. Contact Long & Long P.C. today for a free initial consultation to discuss your options under bankruptcy law. In most cases, we can meet with you within 24 hours.

Chapter 7 Bankruptcy FAQs

LET US ANSWER YOUR QUESTIONS

Colorado bankruptcy attorneys at Long & Long P.C. serve consumer and business debtors from offices in Downtown Denver and the South Metro Area.

Here, we answer some commonly asked questions about filing for Chapter 7 bankruptcy

What is the Means Test?
The “means test” is used to determine eligibility for Chapter 7 bankruptcy. If your income is lower than Colorado’s median income, you can likely file for Chapter 7 bankruptcy. However, if your income is greater than Colorado’s median income for your family size, creditors or the bankruptcy trustee’s office may have the right to file a motion requesting that your case be dismissed as an abuse of Chapter 7. Therefore, it is important to analyze your income and expenses and determine if a Chapter 7 or Chapter 13 should be filed in your case.
What Debts are Dischargeable in Chapter 7 Bankruptcy?
The most common debts that are dischargeable in Chapter 7 bankruptcy include: Credit card debt Repossession deficiencies on vehicle loans Medical bills Personal loans Judgments Negligence claims Business debts Leases Guaranties Tax penalties over three years old
What Debts Are Not Dischargeable in Chapter 7 Bankruptcy?
Under the United States Bankruptcy Code, Congress has determined that certain types of debt are not dischargeable in Chapter 7 bankruptcy for public policy reasons, which means you must still repay these debts after bankruptcy. The following debts are usually not dischargeable: Government-backed student loans Debts incurred to pay nondischargeable taxes Domestic support and property settlement obligations Criminal fines, penalties, forfeitures and restitution Debts for death or personal injury caused by driving while intoxicated Debts that are not properly listed in your bankruptcy papers
How Do I Know if I Should File for Chapter 7 Bankruptcy?
To file for Chapter 7 bankruptcy, you must qualify under the Chapter 7 means test. The means test first compares your income to the median income in Colorado. If your income is lower than Colorado’s median income, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income, other calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy.
What Should I Bring to My Free Initial Consultation?

To file for Chapter 7 bankruptcy, you must qualify under the Chapter 7 means test. The means test first compares your income to the median income in Colorado. If your income is lower than Colorado’s median income, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income, other calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy.

What should I bring to my free initial consultation? When you come to meet with one of the attorneys at Long & Long P.C., please bring the following documents if available:

  • Paycheck stubs for you and your spouse (if married), including current month and last two months
  • Documents showing miscellaneous income received over the last seven months, including commissions or bonuses, child support or spousal support (alimony), gifts, unemployment, trust funds, inheritance, gambling winnings, Social Security payments, retirement payments, rents from tenants, interests and dividends, asset sales, etc.
  • Contributions received for living expenses from non-filing spouse (if married) or other household members over the last seven months
  • Statements for bank or credit union accounts, stock brokerage accounts or other similar accounts for the last two months
  • Bills, notices or letters received from creditors and/or collectors in the last three months for all your debts including notices of pending lawsuits, judgment liens, garnishments or foreclosures
  • Court orders for child support or spousal support, including current amounts or arrearages due and owing
  • Statements or bills for current monthly living expenses
  • Federal and state income tax returns for the last two years, including W-2s and 1099s for the most recent year
  • Recent credit report for each individual debtor
  • Documents regarding any bankruptcy you filed during the last eight years
  • For business debtors, balance sheets plus income and expense summary for the prior year ending and the last month of the current year
How Can I Learn More?
If you are considering Chapter 7 bankruptcy, contact Long & Long P.C. today to schedule a free initial consultation with one of our experienced bankruptcy attorneys. With offices in Downtown Denver, and the South Metro areas, we likely have a location convenient to your home or workplace.

Client Reviews

Marty is absolutely compassionate, understanding and very upfront person. Very professional and EXCELLENT in what he does. When I ran out of options to keep up with our financial obligations during COVID 19...

George S.

Marty Long was able to navigate my difficult case and get me the best case scenario outcome. In addition, I am extremely pleased that there were no additional costs from the original estimate Marty gave to me...

Tony R.

Martin was extremely helpful with our bankruptcy. I pelted this guy with so many questions and had to have filled up his email a billion times and he helped me understand the process to feel confident in our...

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