Anytime Colorado residents encounter new and unfamiliar situations, it is natural to have a lot of questions. After all, the only way to learn about something new is through gaining the necessary information that can only come through experience or learning from others.
The bankruptcy process is one type of new and unfamiliar situation for many Colorado residents. While individuals may have some basic knowledge of what bankruptcy is, they likely are unaware of the specific details of how the process works until they must encounter it personally.
For instance, individuals may not know whether they qualify for Chapter 7 bankruptcy, which is the straight bankruptcy that many may be vaguely familiar with. In order to qualify, individuals must earn less than the median income for their place of residence at the time their case is filed. They might also qualify under the bankruptcy means test, which looks at how much money a person has after they pay their reasonable living expenses.
Similarly, individuals may be concerned with what property they can keep during Chapter 7. Typically, individuals can keep a certain amount of exempt property that is defined under federal and state laws. This includes a certain amount of equity in a person's home, which can be the most important asset in many people's lives.
Fortunately, our firm has years of experience in answering individuals' questions when it comes to bankruptcy. We can help debtors learn about whether they qualify for Chapter 7, and what property might be exempt for them to keep during the process. For more information on our expertise and knowledge, please visit our Chapter 7 page.