Many Colorado residents work hard to acquire assets and build their lifestyle. Some of these assets, like a home or vehicle, can take years, if not decades, to pay off toward full ownership. Accordingly, given the sacrifices that are made to build up one's wealth over the years, it can be devastating when these assets are at risk of being taken by creditors who are seeking to collect on one's debt.
If you find yourself in this type of situation, you may want to consider filing for bankruptcy. Through bankruptcy, individuals can get a fresh start on their finances by wiping out most of the debt they carry.
One particularly popular type of bankruptcy is Chapter 7, which is also known as straight bankruptcy. Individuals who qualify for Chapter 7 can discharge their credit card and medical bills, which are often a major source of one's debt that is causing the financial trouble.
However, it is important to know that certain property belonging to the debtor can be liquidated in order to pay off debt to the person's creditors. At the same time, however, individuals may qualify for certain exemptions that allow them to keep property instead of having it sold in the bankruptcy proceeding. For instance, a certain amount of equity in a person's home can be exempted under federal and state laws, and therefore it is essential that individual s understand what exemptions are available and how they are applied in each case.
Our firm has years of experience in helping our clients understand how to navigate the bankruptcy process. We can advise our clients on whether they qualify for Chapter 7, or whether another type of bankruptcy may be in their best interest. We also can advise our clients on what exemptions are available under federal and state laws, and how to best take advantage of these exemptions. For more information on how our firm can help you, please visit our page on Chapter 7 bankruptcy.