Denver Bankruptcy Filing Attorneys

If you are considering filing for bankruptcy or currently are having financial difficulties, you probably have many questions about bankruptcy and what it can do for you.

We at The Law Office of W. Robert Montgomery, want to help you achieve peace of mind. Here are some frequently asked questions to help you get an initial understanding of bankruptcy. For additional questions and to speak with our Denver bankruptcy filing lawyers in a free initial consultation, contact our Colorado law office.

What property do I get to keep?

Under Chapter 7 bankruptcy, you can keep any exempt property. Exempt property depends on applicable state and federal laws. Under Colorado bankruptcy law, you are allowed to claim exemptions if you have lived in Colorado the two years prior to filing. If not, then you must look backwards at that time period, and where you lived at that time will determine which state exemptions law is applicable to your property.

What debts am I still going to be responsible for?

There are a number of debts that are automatically not discharged in bankruptcy. There are other debts that may not be dischargeable. In order for these nondischargeable debts to become dischargeable, it requires a creditor to pursue bankruptcy in an adversary court proceeding.

Will I lose my house?

Bankruptcy law is unique in Colorado in that you can keep your house as long as you keep your mortgage payments current and up to date without having to become personally liable for mortgages after your case is filed.

Will I lose my car?

You may have to sign a reaffirmation agreement and become personally liable for the car debt after you file for bankruptcy. However, Colorado is the only state that has a private trustee foreclosure process in the entire country. A public trustee cannot sell your property unless she or he has an order from the court that finds the mortgage payments are delinquent.

How will it affect my credit rating?

Your credit rating will bottom out when bankruptcy is filed. However, this gives you a chance to start rebuilding it by paying debts after bankruptcy is filed. You can start by paying for mortgage, utilities and car payments on time. Eventually, your score will rehabilitate over time. This may take up to two years.

This works differently in Chapter 13 bankruptcy, where credit bottoms out the day you file and stays there until the Chapter 13 repayment plan is completed. Repayment plan terms are usually three to five years.

Can I buy a house after I file bankruptcy?

Nothing disqualifies you, but it all depends on the credit you build after bankruptcy. Qualifications for mortgages are variable to change depending on credit ratings and the economic market and the mortgage companies' qualification process for home loans.

Should I keep paying my bills while I'm in the process of filing?

The general rule is that if you have a secure debt you should continue making payments if you want to keep the property. With unsecured debts it doesn't make sense to make payments on credit cards that will be discharged in bankruptcy (student loans are the exception).

Do I need to change my banking accounts?

Only if you owe your bank an unsecured debt that is going to be discharged in bankruptcy, because if so, the banks will take anything that remains in your accounts and apply it toward unsecured debt you have with them. That is why you should close all accounts you have with them.

Who's going to know that I filed bankruptcy?

Bankruptcy filings are public record, meaning anyone who wants to find out, can. Almost all documents from a bankruptcy are on file. But, as a practical matter, the only people who get written notification of a bankruptcy filing are creditors listed and other people who are liable on debts you owe. Employers do not get written notification. Neither do relatives unless they owe money on the particular debt or are owed monthly by you. Otherwise anyone would have to actively look up bankruptcy in your bankruptcy file.

Free Initial Consultation

If you are in need of assistance in filing for bankruptcy, or you have questions about whether filing bankruptcy is right for you, please call our Colorado bankruptcy protection lawyers at 720-496-1338 or fill out the contact form on this site.

We are a debt relief agency. Our lawyers help people file for bankruptcy relief under the U.S. Bankruptcy Code.