Any Colorado resident who has had to deal with a lot of debt knows the toll it can take on a person. From worrying about making monthly payments to being threatened by collection agencies, it seems there is no stop to the troubles of being deep in debt.
This is not true, however, as individuals have options for debt relief available, including Chapter 13 bankruptcy. By filing for Chapter 13, individuals can discharge their debt after making payments on a monthly repayment plan that is set by the bankruptcy court.
In order to qualify for Chapter 13, however, debtors must meet certain requirements. For example, if a person discharged debt through a recent prior bankruptcy, the person may not be eligible to go through Chapter 13. Similarly, if the person failed to fulfill certain requirements like going through credit counseling before filing, the case might be dismissed.
There are also prohibitions that can apply after a bankruptcy case has been filed. For example, one man recently saw his Chapter 13 case dismissed after he failed to pay his creditors since filing the case and had not provided the required reports he was supposed to file.
Accordingly, even after qualifying for the filing of a Chapter 13 case, individuals must be sure to stay on top of their obligations under the case and follow the court's directions. This is far easier to do when a person is working with an experienced bankruptcy attorney, who can help the person navigate through the case and explain what is going on at each step. By doing so, individuals can ensure they will not only qualify at the outset of the case, but meet all the requirements in order to obtain one's goal of becoming debt free.
Source: Maine Biz, "Judge throws out Oxford Aviation owner's bankruptcy," Mar. 12, 2014