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Can Bankruptcy Help With Utility Bills and Past-Due Accounts In Colorado?

Wed, 22 Apr 2026 18:16:05 GMT

Can Bankruptcy Help With Utility Bills and Past-Due Accounts In Colorado?

Managing mounting utility bills and overdue accounts can quickly become overwhelming. For many Colorado residents, financial hardship can lead to difficult choices between paying for necessities and keeping up with past-due balances. Bankruptcy may offer a legal path to regain control over these obligations and obtain meaningful relief.

At the Law Offices of Andrew F. McKenna, P.C., we provide guidance to individuals throughout Colorado who are exploring their options for addressing debt, including utility bills and overdue accounts.

Understanding Utility Debt and Financial Strain

Utility bills—such as electricity, gas, water, and telecommunications—are essential expenses. However, when income is disrupted or expenses rise unexpectedly, these bills can quickly fall behind. Late fees, penalties, and the threat of service disconnection can make the situation even more stressful.

Past-due accounts may also include credit cards, medical bills, or personal loans, all of which can compound financial pressure.

How Bankruptcy Can Address Utility Bills

Bankruptcy can provide several forms of relief when it comes to utility-related debt:

Discharge of Certain Debts
In Chapter 7 bankruptcy, many unsecured debts—including past-due utility bills—may be discharged. This means you are no longer legally required to pay those balances.

Automatic Stay Protection
Once a bankruptcy case is filed, an automatic stay goes into effect. This legal protection can temporarily stop collection efforts, including calls, letters, and potential service shutoffs, giving you breathing room.

Repayment Through Chapter 13
If you file for Chapter 13 bankruptcy, past-due utility bills may be included in a structured repayment plan. This allows you to catch up on overdue balances over time, often without additional penalties.

Keeping Utility Services Active

While bankruptcy can help with past-due balances, it does not eliminate the need to pay for future utility usage. Utility providers may require a deposit or assurance of payment after a bankruptcy filing to continue or restore service.

However, bankruptcy laws limit how utilities can treat customers once a case is filed, helping ensure continued access to essential services.

What About Other Past-Due Accounts?

In addition to utility bills, bankruptcy can help address a wide range of overdue financial obligations, such as:

Credit card debt
Medical bills
Personal loans
Collection accounts

Chapter 7 may eliminate many of these debts, while Chapter 13 allows for manageable repayment over time based on your financial situation.

Is Bankruptcy the Right Solution?

Bankruptcy is not a one-size-fits-all solution. The best option depends on factors such as your income, assets, types of debt, and long-term financial goals. For some individuals, alternatives like debt negotiation or payment plans may be appropriate, while others may benefit from the comprehensive relief bankruptcy can provide.

Legal Guidance for Colorado Residents

If you are struggling with utility bills and past-due accounts in Colorado, understanding your legal options is an important first step. The Law Offices of Andrew F. McKenna, P.C. assists individuals in evaluating their financial circumstances and determining whether bankruptcy may provide the relief they need.

How Bankruptcy Can Help You Get a Fresh Financial Start in Colorado

Tue, 17 Mar 2026 15:36:52 GMT

How Bankruptcy Can Help You Get a Fresh Financial Start in Colorado

Financial challenges can happen to anyone. Unexpected medical bills, job loss, or overwhelming credit card debt can quickly spiral out of control. For many individuals and families in Colorado, bankruptcy offers a legal pathway to regain control and rebuild their financial future. Understanding how bankruptcy works can help you determine whether it may be the right solution for your situation.

At Law Offices of Andrew F. McKenna, P.C., we provide legal assistance to the Colorado public and help individuals navigate the bankruptcy process with clarity and confidence.

Understanding Bankruptcy in Colorado

Bankruptcy is a legal process designed to help individuals and businesses eliminate or reorganize debt under federal law. While filing for bankruptcy may seem intimidating, it is often a practical step toward financial recovery.

There are two common types of bankruptcy for individuals:

Chapter 7 Bankruptcy : This option allows for the discharge of many unsecured debts, such as credit cards and medical bills. In some cases, certain non-exempt assets may be sold to repay creditors.
Chapter 13 Bankruptcy : This option allows individuals to create a repayment plan, typically lasting three to five years, to catch up on debts while keeping their property.

Each type serves different financial situations, and choosing the right one depends on your income, assets, and goals.

Immediate Relief Through the Automatic Stay

One of the most powerful benefits of filing for bankruptcy is the automatic stay. Once your case is filed, creditors must stop collection efforts immediately. This includes:

Harassing phone calls
Wage garnishments
Foreclosure proceedings
Lawsuits and collection actions

This protection provides breathing room and allows you to focus on resolving your financial situation.

Eliminating or Reducing Debt

Bankruptcy can significantly reduce or even eliminate many types of debt. In Chapter 7 cases, qualifying debts may be discharged

entirely, giving you a clean slate. In Chapter 13 cases, you may repay only a portion of what you owe based on your financial circumstances.

This relief can make a substantial difference for those struggling with overwhelming financial obligations.

Protecting Your Property

Many people worry about losing their home or personal belongings when filing for bankruptcy. However, Colorado law provides exemptions that allow you to protect certain assets, such as:

Your primary residence (within exemption limits)
Personal property
Retirement accounts
Vehicles up to a certain value

Chapter 13 bankruptcy can also help you keep your home by allowing you to catch up on missed mortgage payments over time.

Preventing Foreclosure and Repossession

If you are behind on your mortgage or car payments, bankruptcy may help you avoid losing your property. The automatic stay can temporarily halt foreclosure or repossession, and Chapter 13 provides a structured way to bring payments current.

This can be especially important for families trying to maintain stability during financial hardship.

A Path Toward Rebuilding Credit

Although bankruptcy does impact your credit score, it can also serve as a turning point. Once debts are discharged or reorganized, many individuals find it easier to rebuild their credit over time.

With responsible financial habits, such as timely payments and careful use of credit, it is possible to improve your financial standing after bankruptcy.

Is Bankruptcy the Right Choice?

Bankruptcy is not a one-size-fits-all solution. It is important to evaluate your financial situation carefully and consider all available options. Factors such as income, types of debt, and long-term goals should be taken into account.

Working with a knowledgeable attorney can help you understand your rights and make informed decisions about your financial future.

How Legal Guidance Can Help

Filing for bankruptcy involves detailed paperwork, strict deadlines, and legal requirements. Having proper guidance can help ensure that your case is handled correctly and efficiently.

At Law Offices of Andrew F. McKenna, P.C., we assist individuals throughout Colorado in exploring their options and navigating the bankruptcy process. With the right approach, bankruptcy can be a powerful tool for achieving a fresh financial start.

Does Bankruptcy Affect Child Support or Alimony in Colorado?

Mon, 23 Feb 2026 21:04:36 GMT

Does Bankruptcy Affect Child Support or Alimony in Colorado?

Financial hardship can happen to anyone. When debt becomes overwhelming, many Colorado residents consider filing for bankruptcy to regain control of their finances. However, if you are paying or receiving child support or alimony (also known as spousal maintenance), you may wonder how bankruptcy will affect those obligations.

Understanding how bankruptcy interacts with family law orders is critical before making any decisions.

Are Child Support and Alimony Dischargeable in Bankruptcy?

In most cases, child support and alimony cannot be discharged in bankruptcy . These obligations are considered “domestic support obligations” under federal bankruptcy law. Whether you file Chapter 7 or Chapter 13 bankruptcy, you remain legally responsible for paying past-due and ongoing support.

Bankruptcy can eliminate certain unsecured debts such as credit card balances and medical bills, but it does not erase court-ordered child support or spousal maintenance.

What Happens to Past-Due Support?

If you are behind on child support or alimony payments, filing for bankruptcy will not eliminate those arrears. You will still owe the full amount.

In a Chapter 7 case, past-due support remains collectible after your bankruptcy is complete. In a Chapter 13 case, you may be able to create a repayment plan that allows you to catch up on arrears over three to five years. However, you must stay current on ongoing support payments while your case is active.

Failure to remain current on domestic support obligations can jeopardize your bankruptcy case.

Does Bankruptcy Stop Wage Garnishment for Support?

When you file for bankruptcy, an automatic stay temporarily stops most collection actions. However, there are important exceptions. Child support and alimony collections are not fully stopped by bankruptcy.

For example, wage withholding for ongoing child support can continue. Additionally, actions related to establishing or modifying support orders are generally not halted by bankruptcy proceedings.

Can Bankruptcy Help If Support Payments Are Unmanageable?

If your financial situation has changed significantly—such as job loss, illness, or reduced income—bankruptcy alone will not reduce your child support or alimony obligation. Instead, you may need to seek a formal modification through the Colorado family court system.

That said, bankruptcy may still provide meaningful relief. By eliminating other debts, you may free up income that makes it easier to meet your support obligations moving forward.

What About Property Settlements in Divorce?

Not all divorce-related debts are treated the same. While child support and alimony are non-dischargeable, certain property

settlement obligations may be treated differently depending on the chapter of bankruptcy you file.

Because these distinctions can be complex, it is important to carefully review your divorce decree and financial situation with an attorney before filing.

How Law Offices Andrew F. McKenna, P.C. Can Help

Bankruptcy and family law often intersect in complicated ways. If you are concerned about how filing for bankruptcy may affect your child support or alimony obligations, it is important to have clear guidance tailored to your circumstances.

At Law Offices Andrew F. McKenna, P.C., we provide legal assistance to individuals and families throughout Colorado. We can evaluate your financial situation, explain your options, and help you determine the best path forward while protecting your rights and responsibilities.

How Chapter 13 Bankruptcy Can Help You Catch Up on Mortgage Payments in Colorado

Fri, 30 Jan 2026 15:19:09 GMT

How Chapter 13 Bankruptcy Can Help You Catch Up on Mortgage Payments in Colorado

Falling behind on mortgage payments can be overwhelming, especially when the risk of foreclosure starts to feel real. For many Colorado homeowners, Chapter 13 bankruptcy offers a structured way to regain control, protect their home, and catch up on missed payments over time. Understanding how this process works can help you decide whether it may be the right option for your situation.

At Law Offices Andrew F. McKenna, P.C. , we can provide legal assistance to the Colorado public and help homeowners explore debt relief options designed to protect their financial stability.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a court-approved repayment plan that allows individuals with regular income to reorganize their debts. Instead of liquidating assets, you make monthly payments to a bankruptcy trustee over three to five years. These payments are then distributed to creditors according to the plan approved by the court.

For homeowners, one of the most important benefits of Chapter 13 is the ability to address mortgage arrears while keeping the home.

How Chapter 13 Helps With Missed Mortgage Payments

When you file for Chapter 13, the court places an automatic stay on most collection actions. This means foreclosure proceedings must stop while your case is active. You can then include your past-due mortgage payments in your repayment plan.

Rather than paying the full arrears immediately, Chapter 13 allows you to spread those missed payments out over the length of the plan. This can make catching up far more manageable while you continue making your regular monthly mortgage payments going forward.

Stopping Foreclosure Through the Automatic Stay

The automatic stay is one of the most powerful tools in bankruptcy. Once your Chapter 13 case is filed, lenders are generally required to pause foreclosure actions. This breathing room gives you time to work out a realistic plan to repay what you owe without losing your home.

Managing Other Debts at the Same Time

Chapter 13 does more than address mortgage arrears. It can also help you reorganize credit card balances, medical bills, personal loans, and other unsecured debts. By rolling multiple obligations into a single monthly payment, many filers find it easier to stay on track financially.

In some cases, unsecured creditors may receive only a portion of what is owed, depending on your income and assets, freeing up funds to focus on keeping your home current.

Staying Current During the Repayment Plan

While Chapter 13 helps you catch up on missed payments, it is essential to remain current on ongoing mortgage obligations. Missing payments during the plan can jeopardize your case and put your home at risk again. Careful budgeting and realistic planning are key parts of a successful Chapter 13 filing.

Is Chapter 13 Right for Colorado Homeowners?

Chapter 13 bankruptcy may be a good fit if you have fallen behind on your mortgage but have enough income to maintain regular payments going forward. It is especially helpful for homeowners who want to avoid foreclosure and need time to repay arrears in a structured way.

Every financial situation is different, and Colorado bankruptcy laws include specific rules and exemptions that can affect your case. Understanding your options before taking action is critical.

Can I File Bankruptcy In Colorado Without My Spouse?

Mon, 29 Dec 2025 17:54:21 GMT

Can I File Bankruptcy In Colorado Without My Spouse?

If you are considering bankruptcy in Colorado but worry about how it may affect your spouse, you are not alone. Many married individuals face financial hardship independently—whether due to medical debt, credit cards, job loss, or unexpected expenses. Fortunately, Colorado law does allow you to file bankruptcy without your spouse , but there are important rules to understand before making that decision.

At Law Offices of Andrew F. McKenna, P.C. , we help Colorado residents navigate the bankruptcy process and determine the best approach for their household’s financial future.

Filing Bankruptcy Individually in Colorado

Colorado law and federal bankruptcy rules permit married individuals to file bankruptcy on their own. This is often called an “individual bankruptcy filing.” However, your spouse’s financial information may still play a role, depending on the type of bankruptcy you pursue

and your household’s financial structure.

There are two primary types of personal bankruptcy:

Chapter 7 Bankruptcy and Your Spouse

If you file Chapter 7 , the court reviews your household income to decide whether you qualify. That means your spouse’s income must typically be disclosed—even if they are not filing.

Key points:

Your spouse’s income is included in the “means test,” unless you can show that your finances are completely separate.
Your spouse’s separate debts and assets are not affected by your bankruptcy filing.
Only your name will appear on the bankruptcy, and only your debts will be discharged (unless your spouse is a co-signer).

Chapter 7 can be a good option if you have mostly unsecured debt and your household income fits within qualifying limits.

Chapter 13 Bankruptcy and Married Filers

For Chapter 13 , you create a repayment plan based on your disposable household income. Because of this, the court typically requires financial information for both spouses to determine the repayment plan—whether your spouse files or not.

Important considerations:

Your spouse is not required to join your repayment plan.
Household income helps determine the length and amount of your payments.
Debts solely in your spouse’s name remain unaffected.

Will Filing Alone Affect My Spouse’s Credit?

No—your bankruptcy filing will not appear on your spouse’s credit report .

However, your spouse may still be affected if:

They share joint debts with you
They co-signed a loan or credit account
You share assets that might be considered by the bankruptcy trustee

Filing alone can be a smart option when only one spouse has significant debt.

When Filing Without Your Spouse Might Be Beneficial

You may consider individual filing if:

You want to protect your spouse’s credit
Most debts are in your name only
You and your spouse maintain separate finances
Your spouse does not want to be included in the bankruptcy case

Every situation is unique, and a thorough evaluation is important.

Speak With a Colorado Bankruptcy Attorney

Bankruptcy laws are designed to offer relief, but determining whether to file individually or jointly can be complex. At the Law Offices of Andrew F. McKenna, P.C. , we help Colorado residents understand their options and pursue the best path for financial recovery.

How Long Does It Take to File Bankruptcy in Colorado?

Fri, 21 Nov 2025 20:00:04 GMT

How Long Does It Take to File Bankruptcy in Colorado?

Filing for bankruptcy can be a lifeline for Colorado residents facing overwhelming debt, but many people worry about how long the process will actually take. Whether you are considering Chapter 7 or Chapter 13, the timeline can vary based on your financial situation, the court’s schedule, and how quickly you gather required documents. Understanding the general steps can help you prepare and move forward with confidence.

At the Law Offices of Andrew F. McKenna, P.C., we can provide legal assistance to the Colorado public and help guide you through each stage of the bankruptcy process.

How Long Does the Bankruptcy Process Take?

1. Preparing to File (1–4 Weeks)

Before filing, you must complete mandatory credit counseling from an approved provider. This usually takes about an hour but must

be done within 180 days of filing.

Next, you’ll need to gather financial documents such as tax returns, pay stubs, bank statements, and a list of debts and assets. The preparation stage can take anywhere from one week to a month depending on how quickly you collect your information.

2. Filing Your Bankruptcy Petition (Immediate Once Prepared)

Once all paperwork is ready, your attorney can file your petition with the Colorado bankruptcy court. Filing is instantaneous once the documents are submitted electronically. From this moment, an automatic stay goes into effect, stopping creditor collection efforts.

3. Chapter 7 Timeline (Approximately 3–4 Months)

If you file Chapter 7, the process moves relatively quickly:

Meeting of creditors: Usually scheduled 20–40 days after filing
Trustee review: The trustee verifies your documents
Discharge: In most cases, you receive a discharge about 60–90 days after the creditor meeting

Most Chapter 7 cases in Colorado are completed within three to four months from the filing date.

4. Chapter 13 Timeline (3–5 Years)

Chapter 13 takes significantly longer because it involves a structured repayment plan:

Repayment plan filed: Typically submitted with your petition
Confirmation hearing: Usually occurs within 45 days of filing
Plan completion: Takes three to five years

Once your repayment plan is complete and approved, you receive a discharge.

What Can Affect How Long Bankruptcy Takes?

Several factors can influence timing, including:

How quickly you gather documents
Whether your case requires additional court hearings
Trustee requests for more information
Complexity of your financial situation

With the help of a bankruptcy attorney, you can ensure your filings are accurate and avoid unnecessary delays.

Why Work With a Colorado Bankruptcy Attorney?

Bankruptcy requires strict documentation and adherence to federal rules. Working with a knowledgeable attorney helps you file correctly, avoid delays, and maximize your financial relief.

At the Law Offices of Andrew F. McKenna, P.C., we can provide legal assistance to the Colorado public and help you navigate the process from start to finish.

Can I Discharge Tax Debt Through Bankruptcy in Colorado?

Tue, 14 Oct 2025 17:04:53 GMT

Can I Discharge Tax Debt Through Bankruptcy in Colorado?

When financial difficulties mount, tax debt can feel especially overwhelming. Many Colorado residents wonder whether bankruptcy can help them eliminate or manage what they owe to the IRS or the Colorado Department of Revenue. While not all tax debts are dischargeable, certain circumstances may allow you to reduce or eliminate them through bankruptcy.

Understanding Tax Debt in Bankruptcy

Bankruptcy offers two main types of relief for individuals: Chapter 7 and Chapter 13 . Each treats tax debt differently.

Chapter 7 Bankruptcy can discharge income tax debt if it meets specific conditions:

The debt is for income taxes (not payroll or fraud-related taxes).
The tax return was due at least three years before filing.
You filed your tax return at least two years before filing for bankruptcy.
The IRS assessed the tax debt at least 240 days before filing.
You did not commit tax fraud or willful evasion.

If all of these conditions are met, the tax debt may be discharged, giving you a clean slate.
Chapter 13 Bankruptcy allows you to create a repayment plan lasting three to five years. While it may not eliminate tax debt immediately, it can stop collection efforts, reduce penalties, and give you structured payments under court supervision.

What Bankruptcy Cannot Do

Certain debts remain non-dischargeable , including:

Recent income taxes
Payroll and trust fund taxes
Tax penalties for fraud or evasion

Additionally, bankruptcy will not erase tax liens recorded before filing. Those liens remain attached to your property until paid or otherwise resolved.

Moving Forward with Legal Guidance

Tax-related bankruptcy issues can be complicated, and a small mistake may mean your debt cannot be discharged. Having knowledgeable legal assistance is essential to determine your eligibility and ensure proper filing.

At Law Offices of Andrew F. McKenna, P.C. , we can provide legal assistance to the Colorado public. We help clients understand how bankruptcy laws apply to their situation and work toward financial stability.

Can I File Bankruptcy More Than Once in Colorado?

Tue, 30 Sep 2025 18:22:36 GMT

Can I File Bankruptcy More Than Once in Colorado?

Filing for bankruptcy is often a necessary step for those facing overwhelming debt. But what happens if financial hardship arises again after a prior filing? Many people in Colorado wonder whether they can file bankruptcy more than once. The short answer is yes, but there are important rules regarding timing and eligibility.

Filing Bankruptcy Multiple Times

Federal law allows individuals to file bankruptcy more than once, but there are waiting periods between filings depending on the type of bankruptcy. These rules are designed to prevent abuse of the system while still offering a financial reset for those who truly need it.

Chapter 7 Bankruptcy

If you previously received a discharge in a Chapter 7 case, you must wait eight years from the date of your previous filing before you can file another Chapter 7 case.

If you want to file Chapter 13 after a Chapter 7, you must wait four years from the date of the Chapter 7 filing.

Chapter 13 Bankruptcy

If you previously filed Chapter 13, you may be able to file another Chapter 13 case after only two years.

If you want to file Chapter 7 after a Chapter 13 discharge, the waiting period is six years unless you repaid most of your debts under the prior Chapter 13 plan.

Exceptions and Considerations

Not all cases involve a discharge. If your previous bankruptcy was dismissed without discharge, you may be able to file again much sooner. However, the court may impose certain restrictions or require you to show good faith if you have filed multiple times in a short period.

Guidance for Colorado Residents

Bankruptcy law is complex, and eligibility depends on the details of your past and present financial situation. If you are struggling with debt after a prior filing, understanding your options is critical before taking the next step.

At the Law Offices of Andrew F. McKenna, P.C., we can provide legal assistance to the Colorado public, helping individuals understand whether they qualify for bankruptcy and which type may be appropriate for their situation.

How Chapter 13 Bankruptcy Works for People With Regular Income in Colorado

Tue, 26 Aug 2025 14:39:51 GMT

How Chapter 13 Bankruptcy Works for People With Regular Income in Colorado

For many Colorado residents struggling with debt but still earning a steady income, Chapter 13 bankruptcy may provide a path forward. Unlike Chapter 7, which involves liquidating assets to pay creditors, Chapter 13 focuses on creating a manageable repayment plan that allows individuals to keep their property while addressing their debts over time.

Who Qualifies for Chapter 13 in Colorado?

Chapter 13 is designed for people with regular income who can afford to make monthly payments toward their debt. To qualify, your unsecured debts must be below a certain threshold, and you must show that you can keep up with the repayment plan proposed to the court.

How the Repayment Plan Works

The central feature of Chapter 13 is the repayment plan, which typically lasts three to five years. This plan consolidates your debts into a single monthly payment based on your income, expenses, and assets. Some debts, such as mortgage arrears, car loans, or overdue taxes, can be caught up during the plan. Unsecured debts, such as credit cards and medical bills, may be partially discharged if not fully repaid by the end of the plan.

Benefits of Chapter 13 Bankruptcy

Asset protection – You can keep your home, car, and other important property as long as you stay current on your plan.
Stops foreclosure and repossession – Filing Chapter 13 can immediately halt foreclosure or repossession efforts.
Debt restructuring – High-interest debts can be reorganized into more manageable payments.
Fresh start – Once the repayment plan is completed, remaining eligible debts may be discharged.

Why Legal Guidance Matters

Filing for Chapter 13 involves detailed paperwork, court approval, and ongoing compliance with the repayment plan. Mistakes can delay the process or lead to dismissal of the case. At Law Offices of Andrew F. McKenna, P.C., we can provide legal assistance to the Colorado public, helping individuals create feasible repayment plans and guiding them through every step of bankruptcy proceedings.

Filing for Bankruptcy While Unemployed in Colorado: Is It a Good Idea?

Mon, 21 Jul 2025 15:13:17 GMT

Filing for Bankruptcy While Unemployed in Colorado: Is It a Good Idea?

If you’re unemployed and struggling with debt in Colorado, you may be wondering whether filing for bankruptcy is the right move. The idea of taking on a legal process while not earning a paycheck can feel overwhelming—but in some cases, it can be the best path forward. At the Law Offices of Andrew F. McKenna, P.C. , we help Coloradans understand their options and take control of their financial futures.

Understanding Bankruptcy and Unemployment

Being unemployed does not automatically disqualify you from filing for bankruptcy. In fact, it can sometimes improve your eligibility, especially for Chapter 7 bankruptcy . Since Chapter 7 focuses on wiping out unsecured debts (like credit card bills and medical expenses), the court looks at your income level to determine if you qualify. If you’re currently unemployed, your income may fall below Colorado’s median income threshold, making you eligible.

Chapter 13 bankruptcy , on the other hand, requires you to propose a repayment plan based on your income. Without a reliable income stream, it’s generally not a viable option—unless you have other sources of income (such as unemployment benefits, retirement funds, or support from a spouse).

When Bankruptcy Makes Sense

Filing for bankruptcy while unemployed may be a smart move if:

Your debts are overwhelming and you have no realistic way to repay them.
Creditors are pursuing you aggressively through collections, lawsuits, or wage garnishment.
You are trying to protect key assets like your car or home.
You expect your unemployment to continue for the foreseeable future.

Bankruptcy provides an automatic stay , which stops most collection actions immediately. This can offer much-needed breathing room while you figure out your next steps.

What to Consider First

Before filing, it’s important to:

Evaluate your assets : Bankruptcy may involve selling some property to pay creditors.
Understand the long-term impact : Bankruptcy can stay on your credit report for up to 10 years.
Explore alternatives : If your unemployment is temporary, debt negotiation or credit counseling might be a better fit.

A knowledgeable bankruptcy attorney can help you weigh these factors based on your specific situation.

Get Help From a Colorado Bankruptcy Attorney

At the Law Offices of Andrew F. McKenna, P.C. , we assist unemployed individuals across Colorado with navigating the bankruptcy process. We can help you determine whether bankruptcy is the right choice—and if so, how to proceed in a way that protects your interests.

What Happens to My Home If I File for Bankruptcy in Colorado?

Thu, 19 Jun 2025 15:38:07 GMT

What Happens to My Home If I File for Bankruptcy in Colorado?

Filing for bankruptcy can be an overwhelming decision, especially when you're concerned about losing your home. If you're a Colorado homeowner facing financial difficulties, understanding how bankruptcy may affect your property is crucial. At the Law Offices of Andrew F. McKenna, P.C., we help individuals navigate bankruptcy law and understand their rights when it comes to their home.

Colorado’s Homestead Exemption

Colorado provides a homestead exemption that protects a portion of your home equity in bankruptcy. As of 2025, this exemption allows you to protect up to:

$250,000 of equity in your primary residence, or
$350,000 if you, your spouse, or a dependent is elderly (60+) or disabled.

This means that if your home equity is less than the exemption amount, you can typically keep your home, especially in a Chapter 7 bankruptcy. However, if your equity exceeds this amount, the bankruptcy trustee may be able to sell your home to pay creditors.

Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7 : Often called “liquidation bankruptcy,” this form discharges many unsecured debts. You may keep your home if you're current on your mortgage and your equity is within the homestead exemption. If not, the trustee could sell it.
Chapter 13 : This type allows you to keep your home while repaying some or all of your debts over 3–5 years. It's a helpful option if you're behind on mortgage payments but want to catch up through a court-approved plan.

What If You’re Behind on Payments?

If you’ve fallen behind on your mortgage, Chapter 13 may offer a way to avoid foreclosure by spreading out missed payments over time. Chapter 7 won’t stop foreclosure permanently but may delay it temporarily.

Second Mortgages and Liens

In some Chapter 13 cases, it's possible to eliminate junior liens (like second mortgages) if your home is worth less than the amount owed on the first mortgage. This can provide significant relief to struggling homeowners.

Important Considerations

Filing for bankruptcy triggers an automatic stay , which stops foreclosure and collection efforts.
You must continue paying your mortgage if you wish to keep the home.
Every case is unique, and timing, type of bankruptcy, and property value all play a role.

At the Law Offices of Andrew F. McKenna, P.C., we assist Colorado residents in understanding how bankruptcy impacts their homeownership and help create a strategy that protects what matters most. If you're worried about losing your home, don’t navigate this alone—reach out for guidance tailored to your situation.

How to Qualify for Chapter 7 Bankruptcy in Colorado

Fri, 23 May 2025 17:18:05 GMT

How to Qualify for Chapter 7 Bankruptcy in Colorado

Chapter 7 bankruptcy can offer a fresh start for individuals in Colorado who are overwhelmed by debt. Sometimes called “liquidation bankruptcy,” this legal process allows qualified debtors to eliminate most unsecured debts such as credit card balances, personal loans, and medical bills. However, qualifying for Chapter 7 is not automatic—you must meet specific criteria under federal and Colorado bankruptcy laws.

At the Law Offices of Andrew F. McKenna, P.C. , we assist individuals throughout Colorado in determining their eligibility for Chapter 7 bankruptcy and guide them through each step of the process.

Step 1: Meeting the Means Test

The primary requirement for qualifying for Chapter 7 is passing the means test . This test compares your household income to the median income for a similar household in Colorado.

Median Income Levels : If your income is below the state median, you automatically qualify.
Above-Median Income : If your income exceeds the median, additional calculations involving your allowable expenses and debts will be required to determine if you have enough disposable income to repay your debts through a Chapter 13 repayment plan instead.

As of 2025, the median income levels are adjusted periodically, so working with a bankruptcy attorney is crucial to interpreting the latest figures.

Step 2: Evaluating Your Assets

In Chapter 7, a trustee may sell non-exempt assets to repay creditors. However, Colorado offers generous bankruptcy exemptions that may allow you to keep most, if not all, of your property, such as:

A portion of the equity in your home (homestead exemption)
Personal vehicles up to a certain value
Necessary clothing, household goods, and retirement accounts

Understanding which assets are protected under Colorado law is vital to determining whether Chapter 7 is right for you.

Step 3: Credit Counseling Requirement

Before filing, you must complete a credit counseling course from an approved provider within 180 days prior to submitting your bankruptcy petition. This is a mandatory step and proof of completion must be included in your filing.

Step 4: No Recent Bankruptcy Discharges

To qualify for Chapter 7, you must not have received a Chapter 7 discharge in the last 8 years or a Chapter 13 discharge in the last 6 years. If you’ve filed bankruptcy in the past, your eligibility will depend on the dates and type of previous filings.

Step 5: No Evidence of Fraud

Bankruptcy is intended to help honest debtors, so any indication of fraudulent behavior —like hiding assets or running up large debts shortly before filing—can lead to disqualification or case dismissal.

We Can Help You Determine Eligibility

The process of qualifying for Chapter 7 bankruptcy in Colorado involves several detailed steps. At the Law Offices of Andrew F. McKenna, P.C. , we are committed to helping you understand your legal options and move forward with financial confidence. We can evaluate your situation, explain exemptions, and ensure you meet all procedural requirements.

Can You Discharge IRS Tax Debt Through Bankruptcy in Colorado?

Mon, 28 Apr 2025 15:01:31 GMT

Can You Discharge IRS Tax Debt Through Bankruptcy in Colorado?

For many individuals struggling with overwhelming debt, tax liabilities add another layer of stress. At the Law Offices of Andrew F. McKenna, P.C., we assist the Denver public in exploring every available avenue for relief, including the potential to discharge IRS tax debt through bankruptcy. While discharging tax debt is possible, it involves strict rules and requirements.

Understanding Tax Debt and Bankruptcy

Bankruptcy provides individuals a legal method to eliminate or restructure debts under the protection of the court. However, not all debts are treated equally. Some obligations, like most recent tax debts, are categorized as "priority debts" and are generally not dischargeable. That said, under certain circumstances, older income tax debts can be discharged through a Chapter 7 or Chapter 13 bankruptcy filing.

Requirements for Discharging Tax Debt

To have IRS tax debt discharged in bankruptcy, several conditions must be satisfied:

Three-Year Rule : The tax return must have been due at least three years before the bankruptcy filing.
Two-Year Rule : You must have filed a legitimate tax return for the debt at least two years prior to filing for bankruptcy.
240-Day Rule : The IRS must have assessed the tax at least 240 days before the bankruptcy case is filed.
Non-Fraudulent Filing : The tax return must not have been fraudulent, and there must not have been any willful attempt to evade paying taxes.

If all these criteria are met, your IRS tax debt could be eligible for discharge under Chapter 7 bankruptcy, which eliminates the debt, or Chapter 13 bankruptcy, which may allow you to repay some or all of the tax debt over a three-to-five-year plan.

What Types of Tax Debt Are Not Dischargeable?

Certain tax debts remain non-dischargeable even in bankruptcy, including:

Payroll taxes
Fraud penalties
Recent tax debts (less than three years old)
Tax liens recorded before bankruptcy (although the lien remains attached to property)

Why Legal Assistance Matters

Successfully navigating the discharge of tax debt requires a careful review of your financial and tax history. At the Law Offices of Andrew F. McKenna, P.C., we guide Denver residents through the process, ensuring compliance with bankruptcy laws and maximizing debt relief opportunities. Working with a knowledgeable attorney can significantly increase your chances of a favorable outcome.

Signs It Might Be Time to Consider Bankruptcy

Thu, 20 Mar 2025 18:57:26 GMT

Signs It Might Be Time to Consider Bankruptcy

If you’re struggling with overwhelming debt, you’re not alone—and you don’t have to face it without guidance. At the Law Offices of Andrew F. McKenna, P.C. , we help people throughout Colorado understand their options, including whether bankruptcy could offer a fresh financial start. Recognizing when it's time to consider bankruptcy can help you take proactive steps toward regaining control of your finances.

1. You’re Only Making Minimum Payments on Credit Cards

If you’re consistently unable to pay more than the minimum on your credit cards, it could be a sign that your debt is growing faster than you can manage. Over time, interest and fees compound, making it even harder to catch up.

2. Debt Collectors Are Calling

Frequent calls, letters, or even threats of legal action from debt collectors suggest that your debts have fallen into serious delinquency. Bankruptcy can stop these calls through an automatic stay and help you restructure or discharge certain debts.

3. You’re Using One Credit Card to Pay Another

Using credit to pay other credit obligations is a red flag that your financial situation may be unsustainable. This cycle can escalate quickly and lead to a deeper debt trap.

4. You’re Falling Behind on Mortgage or Car Payments

Missing payments on secured loans like your mortgage or car loan puts essential assets at risk. Bankruptcy may help you keep your home or vehicle while catching up on overdue payments through a repayment plan.

5. Your Wages Are Being Garnished

If a creditor has obtained a court judgment and your wages are being garnished, bankruptcy may provide relief. Filing for bankruptcy generally stops wage garnishment and may even allow you to recover some of the garnished funds.

6. You’re Considering Taking from Retirement Savings

Dipping into retirement accounts to pay off debt can jeopardize your future financial security. Most retirement funds are protected in bankruptcy, so you can preserve those assets while resolving your current debts.

7. You’ve Experienced a Major Life Change

A divorce, job loss, medical emergency, or other significant event can drastically affect your financial stability. If your income no longer covers your expenses, bankruptcy might offer a solution.

When to Talk to a Bankruptcy Attorney

If one or more of these signs apply to you, it may be time to speak with a bankruptcy attorney. At the Law Offices of Andrew F. McKenna, P.C. , we provide compassionate, judgment-free legal assistance to individuals across Colorado. We can review your financial situation and help you determine whether Chapter 7 or Chapter 13 bankruptcy—or another solution—is right for you.

Can I Keep My Car if I File for Chapter 7 Bankruptcy in Colorado?

Fri, 21 Feb 2025 18:09:59 GMT

Can I Keep My Car if I File for Chapter 7 Bankruptcy in Colorado?

Filing for Chapter 7 bankruptcy in Colorado can provide much-needed financial relief, but many individuals worry about what will happen to their assets—particularly their car. At the Law Offices of Andrew F. McKenna, P.C. , we understand how important it is to retain reliable transportation. The good news is that keeping your vehicle during Chapter 7 bankruptcy is possible under the right circumstances.

Understanding Chapter 7 Bankruptcy and Asset Liquidation

Chapter 7 bankruptcy is often referred to as "liquidation bankruptcy" because non-exempt assets may be sold to repay creditors. However, not all assets are liquidated—bankruptcy exemptions allow individuals to protect certain necessary property, including a vehicle.

Colorado’s Motor Vehicle Exemption

Colorado law provides a motor vehicle exemption that allows you to protect up to $15,000 in equity in your car ( $25,000 if you are elderly or disabled). Equity is calculated by subtracting the amount you owe on the car loan from the car’s fair market value. If your car’s equity falls within the exemption limit, you can keep your vehicle.

What If Your Car Exceeds the Exemption?

If the equity in your vehicle exceeds the exemption amount, the bankruptcy trustee may sell the car, pay off your auto loan (if applicable), and distribute the remaining funds to creditors. However, options may be available to help you retain ownership, such as:

Negotiating with the trustee to pay off the non-exempt equity.
Reaffirming your loan by continuing regular payments.
Redeeming the car by paying its fair market value in a lump sum.

What Happens to a Car Loan in Chapter 7?

If your car is financed, you will need to decide whether to:

Continue making payments and reaffirm the loan with the lender.
Surrender the vehicle if the loan is too burdensome.
Redeem the vehicle by paying its current market value.

Missing payments after reaffirmation could result in repossession.

Discuss Your Options with a Colorado Bankruptcy Attorney

Navigating Chapter 7 bankruptcy can be complex, but legal guidance can help protect your assets. At the Law Offices of Andrew F. McKenna, P.C. , we assist Colorado residents in understanding their rights and exploring solutions that allow them to move forward financially while keeping essential property like a car.

What Are the Documents Required to Apply for Chapter 7 Bankruptcy in Colorado?

Thu, 21 Nov 2024 21:31:58 GMT

What Are the Documents Required to Apply for Chapter 7 Bankruptcy in Colorado?

Filing for Chapter 7 bankruptcy can provide a fresh financial start by discharging unsecured debts like credit card balances and medical bills. However, the process requires thorough documentation to ensure eligibility and compliance with bankruptcy laws.

At Law Offices of Andrew F. McKenna, P.C. , we provide legal assistance to the Colorado public, helping individuals navigate the complexities of Chapter 7 bankruptcy with confidence and clarity.

Essential Documents for Chapter 7 Bankruptcy Filing

To file for Chapter 7 bankruptcy in Colorado, you must gather and submit a variety of documents to the bankruptcy court. These documents provide a detailed overview of your financial situation, enabling the court to evaluate your case.

Here’s what you’ll need:

1. Personal Identification Documents

Government-issued photo ID (e.g., driver’s license or passport).
Social Security card or other proof of Social Security number.

2. Income Information

Pay stubs or proof of income for the past 6 months.
Income tax returns for the last 2 years.
Documentation of any additional income sources, such as rental income, child support, or alimony.

3. Bank Statements

Statements from all checking, savings, and other financial accounts for the past 3 to 6 months.

4. Asset Information

Deeds, titles, or appraisals for real estate you own.
Vehicle titles and loan payoff amounts.
Retirement account statements, including 401(k), IRA, or pension plans.
Recent appraisals or valuations for personal property such as jewelry, electronics, or collectibles.

5. Debt Information

Copies of credit card statements, medical bills, and any other outstanding debts.
Loan agreements, including auto loans and mortgages.
Collection agency letters or notices of legal action related to your debts.

6. Living Expenses

A detailed list of monthly living expenses, such as rent or mortgage payments, utilities, food, transportation, and insurance.

7. Legal and Financial History

Any court judgments or liens against you.
Copies of any prior bankruptcy filings (if applicable).

8. Credit Counseling Certificate

Proof of completion of a credit counseling course from an approved provider, as required by federal bankruptcy law.

9. Statement of Financial Affairs

A summary of recent financial transactions, including transfers of property or large expenses within the past 2 years.

10. Means Test Documentation

Information needed to complete the bankruptcy means test, which determines your eligibility for Chapter 7. This includes household size, income, and necessary expenses.

Why Accurate Documentation Matters

The bankruptcy court relies on your documentation to:

Determine your eligibility for Chapter 7 bankruptcy.
Assess which debts can be discharged.
Ensure transparency and compliance with legal requirements.

Failing to provide complete or accurate information can result in delays, additional scrutiny, or even dismissal of your case.

How Law Offices of Andrew F. McKenna, P.C. Can Help

Filing for Chapter 7 bankruptcy can feel overwhelming, but you don’t have to do it alone. At Law Offices of Andrew F. McKenna, P.C. , we provide experienced legal assistance to help Colorado residents gather the necessary documents, complete filings, and navigate the entire process.

Our Services Include :

Assessing your financial situation to determine Chapter 7 eligibility.
Organizing and preparing all required documentation.
Representing you in court and throughout the bankruptcy process.
Addressing any challenges or objections that may arise.

Contact Us Today

If you’re considering Chapter 7 bankruptcy in Colorado, contact Law Offices of Andrew F. McKenna, P.C. for a consultation. We’ll guide you through the process step by step, helping you achieve financial relief and a fresh start.

Personal Bankruptcy in Colorado: Your Guide to a Fresh Financial Start

Tue, 01 Oct 2024 02:51:01 GMT

Facing overwhelming debt can be a stressful and daunting experience. Many people in Colorado find themselves struggling with mounting credit card bills, medical expenses, or unexpected financial setbacks. Fortunately, personal bankruptcy can provide a legal solution to help you eliminate or restructure your debts and achieve a fresh financial start. If you’re considering filing for personal bankruptcy in Colorado, it’s essential to understand your options and the potential benefits and drawbacks. In this post, we’ll explore the basics of personal bankruptcy, the types available, and how the process works in Colorado.

What is Personal Bankruptcy?

Personal bankruptcy is a legal process designed to help individuals eliminate or repay their debts under the protection of the federal bankruptcy court. The goal is to provide relief to those who are unable to pay their bills and to give them an opportunity to start over financially. In Colorado, like the rest of the country, personal bankruptcy is governed by federal law, specifically the U.S. Bankruptcy Code, but state-specific rules also apply.

Types of Personal Bankruptcy in Colorado

There are two primary types of personal bankruptcy available to individuals in Colorado: Chapter 7 and Chapter 13. Each type serves a different purpose and is suited to different financial situations. Understanding which one is right for you will depend on your income, the nature of your debts, and your financial goals.

Chapter 7 Bankruptcy: Liquidation Bankruptcy

Chapter 7 is often referred to as “liquidation bankruptcy” because it involves the sale of certain non-exempt assets to pay off creditors. In most cases, however, filers are able to keep most (or all) of their property due to exemptions.
Eligibility: To qualify for Chapter 7, you must pass the Means Test, which assesses your income and expenses. If your income is below the state median for your household size, you automatically qualify. If it’s higher, the test will determine if you have enough disposable income to pay back some of your debts.
Process: Once you file, the court appoints a bankruptcy trustee to oversee your case. The trustee will evaluate your assets, sell any non-exempt property, and use the proceeds to pay creditors. Most unsecured debts, such as credit card debt, medical bills, and personal loans, are discharged (eliminated).
Timeframe: Chapter 7 typically takes 4 to 6 months to complete.
Advantages: Quick process, complete discharge of most unsecured debts, no repayment plan required.
Disadvantages: Potential loss of non-exempt property, does not discharge certain debts (e.g., student loans, child support, recent tax debts).

Chapter 13 Bankruptcy: Reorganization Bankruptcy

Chapter 13, also known as a “wage earner’s plan,” allows individuals with regular income to create a 3 to 5-year repayment plan to pay off some or all of their debts. Unlike Chapter 7, Chapter 13 does not involve the liquidation of assets.
Eligibility: To file under Chapter 13, your secured and unsecured debts must be below certain limits set by federal law. You must also show that you have enough income to make regular payments under a court-approved plan.
Process: You propose a repayment plan outlining how you will pay your creditors over the repayment period. The court and your creditors must approve the plan. Once the plan is completed, any remaining eligible debts are discharged.
Timeframe: Chapter 13 typically takes 3 to 5 years to complete.
Advantages: You can keep your property, stop foreclosure, and catch up on missed mortgage or car payments.
Disadvantages: Requires a long-term commitment, ongoing payments to creditors, and does not discharge certain debts.

Which Type of Bankruptcy is Right for You?

Choosing between Chapter 7 and Chapter 13 depends on your financial circumstances and goals. Here are some considerations:

Choose Chapter 7 If:
You have mostly unsecured debts (e.g., credit cards, medical bills).
You have few assets or your property is covered by Colorado’s exemptions.
You want a quick discharge of your debts without a repayment plan.
Choose Chapter 13 If:
You have significant secured debts (e.g., mortgage, car loans) and want to keep your property.
You are behind on your mortgage or car payments and need time to catch up.
You have non-dischargeable debts (e.g., certain tax debts, child support) that you want to pay off through a structured plan.

Colorado-Specific Exemptions in Personal Bankruptcy

One of the most important aspects of filing for bankruptcy in Colorado is understanding the state’s exemption laws. Exemptions determine what property you can keep through the bankruptcy process. In Colorado, you must use the state-specific exemptions rather than federal exemptions. Some of the most common exemptions include:

Homestead Exemption: Up to $75,000 in equity in your primary residence ($105,000 if you are disabled or over 60 years old).
Motor Vehicle Exemption: Up to $7,500 in equity in one vehicle.
Personal Property Exemption: Up to $3,000 for household goods, furniture, and clothing.
Tools of the Trade: Up to $30,000 for tools, equipment, or books necessary for your occupation.
Retirement Accounts and Pensions: Most qualified retirement accounts are fully exempt.

These exemptions can protect your property from being sold in a Chapter 7 bankruptcy and ensure that you can keep critical assets in a Chapter 13 plan.

The Personal Bankruptcy Process in Colorado

Filing for bankruptcy in Colorado involves several key steps. Here’s a brief overview of the process:

Pre-Filing Credit Counseling

Before filing for bankruptcy, you must complete a credit counseling course from an approved provider. This course helps you understand your options and ensures that bankruptcy is the right choice for you.

Filing the Petition

You or your attorney will file a bankruptcy petition and accompanying forms with the U.S. Bankruptcy Court in your district. This includes a list of your debts, assets, income, expenses, and recent financial transactions.

Automatic Stay

Once you file, an automatic stay goes into effect immediately, halting all collection activities, including wage garnishments, foreclosure proceedings, and creditor harassment.

Meeting of Creditors (341 Meeting)

About 30 days after filing, you will attend a 341 Meeting of Creditors. The trustee and any creditors who choose to attend can ask questions about your finances and the information provided in your filing.

Confirmation Hearing (Chapter 13 Only)

If you filed under Chapter 13, the court will hold a confirmation hearing to review and approve your repayment plan.

Discharge of Debts

If everything is in order, the court will issue a discharge order eliminating most of your eligible debts.

How the Law Offices of Andrew F. McKenna, P.C. Can Help

Filing for personal bankruptcy is a major decision that can have lasting financial and legal consequences. At the Law Offices of Andrew F. McKenna, P.C., we understand the complexities of bankruptcy law and are committed to helping Colorado residents regain control of their finances. Our experienced team will assess your situation, explain your options, and guide you through every step of the bankruptcy process.

If you are considering filing for personal bankruptcy in Colorado, contact us today to schedule a consultation. We are here to help you achieve a fresh financial start and a brighter future.

Can Chapter 7 Bankruptcy Prevent Foreclosure in Colorado?

Sun, 01 Sep 2024 17:14:43 GMT

Can Chapter 7 Bankruptcy Prevent Foreclosure in Colorado?

Are you a Colorado resident facing the possibility of foreclosure on your home? It can be a stressful and overwhelming situation to be in, but there may be a solution for you. Chapter 7 bankruptcy is a legal option that can help individuals struggling with debt to get a fresh start. At Law Offices Andrew F. McKenna, P.C., we have experience in bankruptcy law and are here to assist the Colorado public with their financial matters. In this blog post, we will explore how Chapter 7 bankruptcy can potentially prevent foreclosure and provide some insight into the process.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed to give individuals a chance to wipe out their debts and start fresh. When you file for Chapter 7 bankruptcy, an automatic stay is put into effect, which halts all collection actions against you, including foreclosure proceedings. This means that creditors, including your mortgage lender, must stop all attempts to collect on your debts while the bankruptcy process is ongoing.

In order to prevent foreclosure through Chapter 7 bankruptcy in Colorado, you must meet certain requirements. First and foremost, you must pass the means test, which evaluates your income and expenses to determine if you qualify for Chapter 7 bankruptcy. Additionally, you must complete credit counseling from an approved agency within six months before filing for bankruptcy. It is important to consult with a qualified bankruptcy attorney to ensure that you meet all eligibility requirements and understand the implications of filing for Chapter 7 bankruptcy.

When you file for Chapter 7 bankruptcy in Colorado, all of your non-exempt assets are liquidated by a court-appointed trustee to repay your creditors. However, there are exemptions in place that allow you to keep certain property such as your primary residence up to a certain value. If your home equity falls within the exemption limit set by Colorado law, you may be able to keep your home and prevent foreclosure through Chapter 7 bankruptcy.

It is important to note that while Chapter 7 bankruptcy can halt foreclosure proceedings temporarily, it does not guarantee that you will be able to keep your home in the long run. If you are behind on mortgage payments or cannot afford to make future payments after filing for Chapter 7 bankruptcy, your lender may still pursue foreclosure once the automatic stay is lifted. In some cases, individuals may choose to surrender their homes as part of their Chapter 7 bankruptcy discharge if they are unable to afford them.

In conclusion, while Chapter 7 bankruptcy can provide temporary relief from foreclosure proceedings in Colorado, it may not always be a long-term solution for keeping your home. It is crucial to consult with an experienced bankruptcy attorney like those at Law Offices Andrew F. McKenna, P.C., who can guide you through the process and help you make informed decisions about your financial future. If you are facing foreclosure or struggling with debt in Colorado, don't hesitate to reach out for assistance and explore all of your options available under the law.

Pros and Cons of Filing for Chapter 13 Bankruptcy in Colorado

Wed, 31 Jul 2024 01:14:04 GMT

Filing for bankruptcy is a significant decision that can have lasting effects on your financial future. For many individuals in Colorado facing overwhelming debt, Chapter 13 bankruptcy offers a viable solution. At the Law Offices of Andrew F. McKenna, P.C., we are committed to helping you make informed decisions about your financial health. Here, we explore the pros and cons of filing for Chapter 13 bankruptcy to help you understand whether it’s the right choice for you.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as a wage earner's plan, allows individuals with a regular income to develop a plan to repay all or part of their debts over three to five years. Unlike Chapter 7 bankruptcy, which liquidates assets to pay off debts, Chapter 13 focuses on reorganization and repayment.

Pros of Filing for Chapter 13 Bankruptcy

Debt Repayment Plan: Chapter 13 allows you to create a manageable repayment plan based on your income. This plan helps you pay off debts over a specified period, typically three to five years.
Home Foreclosure Prevention: Filing for Chapter 13 can stop foreclosure proceedings and allow you to catch up on missed mortgage payments. This is particularly beneficial for homeowners looking to keep their property.
Debt Consolidation: Chapter 13 consolidates your debts into one monthly payment, simplifying your financial obligations and making it easier to manage your finances.
Protection of Non-Exempt Assets: Unlike Chapter 7, which may require you to liquidate certain assets, Chapter 13 allows you to keep your non-exempt property while repaying your debts.
Co-Debtor Stay: Chapter 13 provides protection for co-signers on consumer debts, preventing creditors from pursuing them while you’re under the repayment plan.
Discharge of Certain Debts: After completing the repayment plan, remaining unsecured debts may be discharged, providing you with a fresh financial start.

Cons of Filing for Chapter 13 Bankruptcy

Longer Repayment Period: The repayment plan lasts three to five years, which can be a long commitment. You must adhere to the plan's terms throughout this period.
Impact on Credit Score: Bankruptcy will negatively impact your credit score, and Chapter 13 remains on your credit report for up to seven years from the filing date.
Disposable Income Restrictions: You will be required to devote all your disposable income to the repayment plan, which can limit your financial flexibility.
Complexity and Costs: Chapter 13 bankruptcy involves complex legal procedures and paperwork. Additionally, there are filing fees and attorney costs to consider.
Potential for Dismissal: If you fail to make the agreed-upon payments or adhere to the plan’s terms, your Chapter 13 case could be dismissed, and you may lose the protections it provides.

Is Chapter 13 Bankruptcy Right for You?

Deciding to file for Chapter 13 bankruptcy is a personal decision that depends on your financial situation, goals, and ability to commit to a repayment plan. It’s crucial to weigh the pros and cons and seek professional legal advice to determine the best course of action.

Chapter 13 bankruptcy can offer significant benefits for individuals struggling with debt, but it’s essential to understand the potential drawbacks. At the Law Offices of Andrew F. McKenna, P.C., we are dedicated to providing comprehensive legal guidance to help you navigate the complexities of bankruptcy and achieve financial stability.

If you’re considering filing for Chapter 13 bankruptcy in Colorado, contact us today for a consultation. Let us help you explore your options and make an informed decision for your financial future.

Understanding the Documents Required for Chapter 13 Bankruptcy in Colorado

Sat, 29 Jun 2024 17:34:02 GMT

Understanding the Documents Required for Chapter 13 Bankruptcy in Colorado

Filing for Chapter 13 bankruptcy can be a complex and overwhelming process, especially if you are not familiar with the required documents. At Law Offices of Andrew F. McKenna, P.C., we understand the challenges that come with bankruptcy proceedings and are here to assist the Colorado public every step of the way. In this blog post, we will discuss the essential documents needed to file for Chapter 13 bankruptcy in Colorado and how our firm can help you navigate through this process.

Proof of Income:

One of the key documents required for filing Chapter 13 bankruptcy is proof of income. This includes pay stubs, tax returns, and any other sources of income such as rental property or investments. Providing accurate and up-to-date information about your income is crucial for determining your repayment plan under Chapter 13.

List of Debts:

Another important document needed for filing Chapter 13 bankruptcy is a comprehensive list of all your debts. This should include details such as creditor names, account numbers, outstanding balances, and payment history. Organizing your debts in a clear and concise manner will help streamline the bankruptcy process and ensure that all creditors are accounted for.

Asset Information:

In addition to proof of income and a list of debts, you will also need to provide detailed information about your assets when filing for Chapter 13 bankruptcy in Colorado. This includes real estate properties, vehicles, bank accounts, investments, and any other valuable assets you may own. Properly documenting your assets is essential for determining how they will be treated in your repayment plan.

Budget Analysis:

As part of the Chapter 13 bankruptcy filing process, you will be required to submit a budget analysis outlining your monthly expenses and financial obligations. This document helps determine your disposable income available for debt repayment after covering essential living expenses such as housing, utilities, food, transportation, and healthcare.

Credit Counseling Certificate:

Before filing for Chapter 13 bankruptcy in Colorado, you must complete a credit counseling course from an approved agency within six months prior to filing. The certificate of completion from this course is another essential document that needs to be included in your bankruptcy petition.

Navigating through the paperwork required for filing Chapter 13 bankruptcy in Colorado can be overwhelming without proper guidance and legal representation. At Law Offices of Andrew F. McKenna, P.C., our experienced attorneys help individuals understand their options under Chapter 13 bankruptcy and guiding them through the process from start to finish.

If you are considering filing for Chapter 13 bankruptcy or have questions about the necessary documents needed for this type of proceeding in Colorado, contact us today to schedule a consultation with one of our knowledgeable attorneys who can assist you every step along the way towards financial freedom.

Who Qualifies for Chapter 7 Bankruptcy in Colorado?

Sun, 02 Jun 2024 16:02:56 GMT

Who Qualifies for Chapter 7 Bankruptcy in Colorado?

Facing financial difficulties can be overwhelming, but it's important to know that there are options available to help you get back on track. One option that many individuals consider is filing for Chapter 7 bankruptcy. However, not everyone qualifies for Chapter 7 bankruptcy in Colorado. In this blog post, we will explore the qualifications for Chapter 7 bankruptcy and how the Law Offices of Andrew F. McKenna, P.C. can assist Colorado residents with their bankruptcy matters.

To qualify for Chapter 7 bankruptcy in Colorado, you must meet certain income requirements. The first step in determining eligibility is to take the means test, which calculates your income and expenses to determine if you have enough disposable income to repay your debts. If your income falls below the median income level for Colorado, you may qualify for Chapter 7 bankruptcy.

Another requirement for Chapter 7 bankruptcy is that you must not have filed for bankruptcy under Chapter 7 within the past eight years or Chapter 13 within the past six years. Additionally, if a previous bankruptcy case was dismissed within the last 180 days due to violating a court order or failing to appear in court, you may not be eligible for Chapter 7.

Certain types of debt may also impact your eligibility for Chapter 7 bankruptcy. For example, if you have primarily consumer debts (such as credit card debt or medical bills) rather than business-related debts, you may be eligible for Chapter 7. However, some types of debt, such as student loans and child support payments, are generally not dischargeable through Chapter 7 bankruptcy.

It's important to note that even if you meet the qualifications for Chapter 7 bankruptcy, it may not always be the best option for your financial situation. Consulting with a qualified bankruptcy attorney at the Law Offices of Andrew F. McKenna, P.C. can help you understand all of your options and make an informed decision about how to proceed.

The experienced team at the Law Offices of Andrew F. McKenna, P.C. understands that every individual's financial situation is unique and requires personalized attention. Whether you are considering filing for Chapter 7 bankruptcy or exploring other debt relief options, our dedicated attorneys can provide guidance and support throughout the process.

In conclusion, qualifying for Chapter 7 bankruptcy in Colorado involves meeting specific income requirements, avoiding recent bankruptcies or dismissals, and having primarily consumer debts rather than business-related debts. If you're considering filing for Chapter 7 bankruptcy or exploring other debt relief options, don't hesitate to reach out to the Law Offices of Andrew F. McKenna, P.C. Our team is here to help Colorado residents navigate their financial challenges and work towards a brighter financial future.

How Long Does Chapter 7 Bankruptcy Stay on Your Credit Report in Colorado?

Thu, 14 Mar 2024 20:32:04 GMT

ThIf you're a resident of Colorado and considering filing for Chapter 7 bankruptcy or have recently done so, you might be worried about the long-term impact this could have on your credit report. Bankruptcy can provide relief from overwhelming debt, but it's also true that it leaves a mark on your financial history. Understanding how long this information stays on your credit report and the consequent effects is essential for rebuilding your financial stability.

The Duration of Bankruptcy on a Credit Report

Typically, a Chapter 7 bankruptcy will remain on your credit report for 10 years from the filing date. This duration is longer than for a Chapter 13 bankruptcy, which usually stays for 7 years. The reason for the longer time frame with Chapter 7 is because, unlike Chapter 13, it involves liquidating assets to clear debts without requiring a repayment plan.

The ten-year mark is a general guideline, as the exact time bankruptcy information is removed can vary depending on the policies of the credit reporting agencies. However, Coloradans can expect their credit history to reflect their Chapter 7 filing for about a decade.

Consequences on Your Credit Report

The immediate consequence of having a bankruptcy on your credit report is a significant drop in your credit score. This can affect your ability to get approved for credit cards, loans, or a mortgage in the future. Furthermore, the interest rates you qualify for could be notably higher, as lenders will view you as a higher risk borrower.

Even though bankruptcy can severely impact your credit, its effect diminishes over time, especially if you take positive steps towards rebuilding your credit. This can include measures such as:

Paying any remaining debts consistently and on time.
Keeping your credit utilization low.
Applying for a secured credit card and using it responsibly.
Avoiding incurring new debts that cannot be managed comfortably.

Moving Forward After Bankruptcy

While ten years may seem like a long time, it's essential to focus on what you can control, such as your spending habits and financial management moving forward. You may even notice that after a few years, if you've kept good financial habits, you can still access credit and may not be as significantly impacted by the past bankruptcy.

It’s also worth noting that in Colorado, as elsewhere, potential employers can check your credit report as part of the application process. However, as per the Fair Credit Reporting Act (FCRA), they must obtain your written consent to do so. While a bankruptcy can influence their decision, it's your recent financial behavior that will show your current fiscal responsibility.

Bankruptcy should never be taken lightly, as it places a lasting imprint on your credit report. For Colorado residents, the repercussions of a Chapter 7 bankruptcy filing will stay visible for a decade, but it's not an insurmountable obstacle. By understanding the consequences and taking deliberate steps to manage your finances prudently, you can rebuild your credit and work towards your financial goals.

Remember, filing for bankruptcy marks the beginning of a new chapter, not the end of your financial story. With careful planning and responsible behavior, you can restore your financial health and creditworthiness well before the bankruptcy notation drops off your credit report.

Understanding Bankruptcy in Colorado: Home, Car, and Debt Discharge

Wed, 07 Feb 2024 16:38:14 GMT

Filing for bankruptcy can be a daunting decision for anyone. However, if you are struggling with overwhelming debt, it may be the best option for you. In Colorado, there are two primary types of bankruptcy: Chapter 7 and Chapter 13. Each type has its own set of rules regarding what assets can be kept and which debts can be discharged. In this blog post, we'll take a closer look at three common questions that many people have when considering filing for bankruptcy: Can I keep my home and car in Chapter 13 bankruptcy? What assets are exempt in Chapter 7 bankruptcy? And finally, what debts get discharged when I file for Chapter 13 bankruptcy?

1) Can I keep my home and car in Chapter 13 bankruptcy?

Chapter 13 bankruptcy is often referred to as reorganization or repayment plan bankruptcy. This means that instead of liquidating your assets to repay creditors like in Chapter 7, you create a payment plan over three to five years to pay off your debts. So, can you keep your home and car in this type of bankruptcy? The answer is generally yes! As long as you continue making payments on these assets through your repayment plan, you should be able to keep them.

2) What assets are exempt in Chapter 7 bankruptcy?

Chapter 7 is often referred to as liquidation bankruptcy because some of your assets may need to be sold off to pay back creditors. However, certain types of property are considered exempt under Colorado law. This means that they cannot be taken from you by the court or sold off during the bankruptcy process. Some examples of exempt property include:

Your primary residence up to $75,000 in equity
A vehicle up to $7,500 equity
Personal property such as clothing and household goods
Retirement accounts such as 401(k) or IRAs

It's important to note that these exemption amounts are subject to change, so it's always best to consult with a bankruptcy attorney for the most up-to-date information.

3) What debts get discharged when I file for Chapter 13 bankruptcy?

Chapter 13 bankruptcy can be a great option for those who want to keep their assets but still need debt relief. In this type of bankruptcy, certain debts can be discharged at the end of your repayment plan. These may include:

Credit card debt
Medical bills
Personal loans
Past-due utility bills
Some tax debts

However, it's important to note that not all debts are dischargeable in Chapter 13 bankruptcy. For example, student loan debt is generally not dischargeable unless you can prove undue hardship.

4) How do I know if bankruptcy is right for me?

Deciding whether or not to file for bankruptcy is a big decision and should not be taken lightly. It's essential to speak with an experienced bankruptcy attorney who can evaluate your individual circumstances and help you make an informed decision. They can also guide you through the process and ensure that everything is done correctly.

Filing for bankruptcy can be a complex and emotional process, but it doesn't have to be scary. Understanding what assets you can keep, what debts may be discharged, and how each type of bankruptcy works is essential. If you're considering filing for bankruptcy in Colorado, it's important to seek out the advice of an experienced attorney who can answer your questions and help guide you through the process.

Navigating Bankruptcy in Colorado: Know Your Rights

Thu, 25 Jan 2024 19:47:45 GMT

Navigating Bankruptcy in Colorado: Know Your Rights

Financial struggles can hit anyone, and sometimes, bankruptcy is the only option. But the process of filing for bankruptcy can be long, complex and confusing. Do you know what your rights are when it comes to bankruptcy in Colorado? From what assets you can keep to what debts you can discharge, this blog post will provide you with information you need to understand your rights in the bankruptcy process.

Can I keep my home and car in Chapter 13 bankruptcy?

Chapter 13 bankruptcy, also known as a wage earner’s plan, enables individuals with regular income to repay some or all of their debts in a structured repayment plan over a period of three to five years. The good news is, in Chapter 13 bankruptcy, you can keep your home and car. However, you will still have to pay secured debts like mortgages and car loans, and they may need to be paid in full over the course of your repayment plan. It’s important to speak with a trusted bankruptcy attorney to understand your options and how the process will impact your assets.

What assets are exempt from Chapter 7 bankruptcy?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a process that liquidates most of your assets to pay off your creditors. However, some assets are exempt from this process, and you can keep them. These exemptions can vary by state. In Colorado, some of the most common exemptions include homestead exemptions, retirement accounts, and personal property like clothing and furniture. It’s important to understand these exemptions before filing for Chapter 7 bankruptcy because it’s a non-negotiable part of the process.

What debts get discharged when I file for Chapter 13 bankruptcy?

In Chapter 13 bankruptcy, you may not be able to discharge all your debts, but you can develop a manageable repayment plan that can help eliminate some debt over time. Some debts that may be included in your repayment plan include unsecured debts such as credit card bills, personal loans, and medical bills. However, it’s important to keep in mind that secured debts like a mortgage or car payment will still need to be paid. Again, it’s critical to have a trusted bankruptcy attorney in Colorado walk you through the process and the options that are available to you.

At Law Offices of Andrew F. McKenna, P.C. we can assist the Colorado Public with bankruptcy matters.

If you’re filing for bankruptcy in Colorado, it’s essential to seek help from a bankruptcy attorney who can guide you through the bankruptcy process. At the Law Offices of Andrew F. McKenna, P.C., we’ve helped individuals and families navigate bankruptcy for more than 30 years. Our team of skilled attorneys can guide you through the bankruptcy filing process and protect your rights so you can get back on your feet financially. We have extensive experience in both Chapter 7 and Chapter 13 bankruptcies and can help you identify the best solution for your unique situation.

Bankruptcy can feel overwhelming, but whether you’re filing for Chapter 7 or Chapter 13 bankruptcy, it’s critical to understand your rights. By knowing what debts you can discharge, what assets you can keep, and what exemptions apply in Colorado, you can position yourself for the best possible outcome. At the Law Offices of Andrew F. McKenna, P.C., we’re here to help you get through the bankruptcy process with confidence. Contact us today to speak with an attorney and learn more about how we can help you.

Chapter 7 vs Chapter 13 Bankruptcy: Which Is the Right Choice for You?

Mon, 18 Dec 2023 17:20:10 GMT

Chapter 7 vs Chapter 13 Bankruptcy: Which Is the Right Choice for You?

Bankruptcy is a legal process that can help individuals and businesses eliminate or repay debts under the protection of the Federal Bankruptcy Law. Bankruptcy can be a stressful and emotional decision, but knowing the difference between Chapter 7 and Chapter 13 bankruptcy can help determine which is the best solution for your financial situation. The choice of bankruptcy chapter is ultimately dependent on several factors such as income, debt, and assets. In this blog, we will clarify the difference between Chapter 7 bankruptcy versus Chapter 13 bankruptcy and who should file for Chapter 13 bankruptcy.

Chapter 7 bankruptcy is also known as a liquidation bankruptcy and is the most common type of bankruptcy filed. In a Chapter 7 bankruptcy, the debtor turns over all non-exempt property to a bankruptcy trustee who sells the property and distributes the proceeds to the creditors. This process takes about three to six months and, during this time, creditors are prohibited from collecting debts. However, it is important to note that not all debts qualify for discharge in Chapter 7 Bankruptcy. Non-dischargeable debts include student loans, taxes, child support, alimony payments, and debts incurred through fraud. In order to qualify for Chapter 7, the debtor must meet the means test. This test determines whether an individual's income is below the median income in their state. If their income is above the threshold, then they may not be eligible for Chapter 7, and Chapter 13 bankruptcy may be a better choice.

Chapter 13 bankruptcy is a reorganization bankruptcy and suitable for those individuals who do not qualify for Chapter 7 bankruptcy due to their income or non-exempt assets. In a Chapter 13 bankruptcy, the debtor pays back a portion or all of their debts over a period of three to five years. Rather than selling assets, the debtor is allowed to keep all of their assets but is required to repay their creditors based on a court-approved repayment plan. The court approves this plan, which includes how much the debtor pays each month and for how long. Chapter 13 bankruptcy is suitable for individuals who have assets that they would like to keep because they cannot be protected under Chapter 7 bankruptcy. Additionally, individuals who want to pay their debts but need a payment plan can file for Chapter 13.

At Law Offices of Andrew F. McKenna, P.C., we can assist Colorado residents with bankruptcy matters. Our expert team of attorneys will provide individualized attention and support throughout the entire legal process. We understand that going through bankruptcy can be a challenging and emotional experience, and we are committed to helping each client achieve financial stability. We have extensive knowledge in bankruptcy law and will help determine which chapter is right for you, whether it be Chapter 7 or Chapter 13.

Choosing between Chapter 7 and Chapter 13 bankruptcy is a major decision that requires careful consideration and expert legal advice. Chapter 7 bankruptcy is suitable for people who do not have a regular income and have minimal assets. On the other hand, Chapter 13 bankruptcy is an ideal solution for individuals with a regular income and who want to keep their assets. At Law Offices of Andrew F. McKenna, P.C., we are committed to supporting Colorado residents throughout the entire bankruptcy legal process. Our team of experienced attorneys will provide you with personal attention and support to help you achieve financial stability. Contact us today to schedule your consultation.

Alternatives to Chapter 7 Bankruptcy Exploring Other Debt-Relief Options

Thu, 09 Nov 2023 22:17:35 GMT

Being burdened with overwhelming debt can be an incredibly stressful and frustrating experience. It can leave you feeling helpless and like there are no solutions available to help you get back on track financially. Although Chapter 7 bankruptcy is a well-known debt relief option, it is not always the best solution for everyone. In this blog post, we will explore some alternatives to Chapter 7 bankruptcy that may be better suited to your specific financial situation. If you are a Colorado resident struggling with debt, keep reading to learn more.

1. Debt Consolidation:

Debt consolidation is a common solution for people who owe money to multiple creditors. This process involves taking out a loan to pay off several debts, leaving you with a single loan payment to manage each month. The benefits of debt consolidation are that you may be able to secure a lower interest rate on your consolidated loan, and you will only have one monthly payment to worry about, which can make managing your debt much more manageable.

2. Debt Management Plan:

A debt management plan is another option for managing debt and is often used in conjunction with debt consolidation. This plan is a structured repayment schedule that is agreed upon by you and your creditors. Under this plan, you would make a single payment each month to a credit counseling service, which would then distribute your payments to your creditors according to the agreed-upon schedule.

3. Debt Settlement:

Debt settlement is a solution that involves negotiating with your creditors to pay off your debt for less than what you owe. While this option is not suitable for everyone, it can be incredibly beneficial if you have a significant amount of debt that you are unable to pay back in full. Debt settlement entails negotiating with your creditors to forgive a portion of your debt, and then paying the remaining amount in a lump sum or over time.

4. Consumer Proposal:

A consumer proposal is a debt payment plan that is legally binding for both you and your creditors. Under this plan, you would make a single monthly payment to a licensed insolvency trustee, who would then distribute your payment to your creditors. One significant advantage of a consumer proposal is that your creditors are not allowed to continue harassing you for payment once the proposal has been approved.

5. Paying Off Your Debts on Your Own:

This solution may seem obvious, but it is often the most effective way to manage your debts, especially if they are not overly excessive. Paying off your debts on your own requires that you create a plan and stick to it to reduce your debts over time. This plan may include measures such as cutting back on expenses, working overtime, or even taking on additional jobs or freelance work.

Although Chapter 7 bankruptcy is one option available to manage overwhelming debt, it is not always the best solution for everyone. Alternatives such as debt consolidation, debt management plans, debt settlement, consumer proposals, and paying off your debts on your own may be better suited to your specific financial situation. If you are a Colorado resident struggling with debt, consult with a licensed insolvency trustee to learn more about your options and decide which solution is best suited to your needs. By taking action sooner rather than later, you can take control of your finances and get back on track to achieving your financial goals.

How Often Can You File for Chapter 7 Bankruptcy in Colorado?

Fri, 20 Oct 2023 06:14:37 GMT

Bankruptcy is a legal process that provides relief to individuals and businesses who are struggling with overwhelming debt. For individuals, there are two common types of bankruptcy: Chapter 7 and Chapter 13. In this blog post, we will focus on Chapter 7 bankruptcy and explain how often you can file for it in Colorado. Additionally, we will discuss whether it is possible to file for Chapter 7 bankruptcy more than once.

Chapter 7 bankruptcy is also known as a "liquidation" bankruptcy. This means that the bankruptcy court may sell some of your assets to pay off your creditors. However, many types of property are protected by exemptions under Colorado law and can be kept by the debtor. In order to be eligible for Chapter 7 bankruptcy, you must pass the "means test," which compares your income to the median income for your household size in Colorado. If your income is below the median, you can file for Chapter 7 bankruptcy. If it is above the median, you may still be eligible if you pass the second part of the means test, which determines whether you have enough disposable income to pay back some of your debts.

In Colorado, there is no limit on the number of times that you can file for Chapter 7 bankruptcy. However, there are time limits between filings. If you received a discharge in a previous Chapter 7 case, you cannot file for Chapter 7 bankruptcy again until eight years have passed from the date you filed your previous case. If you received a discharge in a Chapter 13 case, you cannot file for Chapter 7 bankruptcy again until six years have passed from the date you filed your previous case. If you file for Chapter 7 bankruptcy before these time limits have expired, you will not be eligible for a discharge of your debts.

If you have filed for Chapter 7 bankruptcy before and received a discharge of your debts, you may be wondering if you can file for Chapter 7 bankruptcy again. The answer is yes, but there are some restrictions. If you received a discharge in your previous Chapter 7 case, you cannot receive another discharge of your debts in a new Chapter 7 case until eight years have passed from the date you filed your previous case. However, you may still be able to file for Chapter 7 bankruptcy and use it to eliminate certain debts, such as medical bills or credit card debt, that were not discharged in your previous case.

If you are considering filing for bankruptcy in Colorado, it is important to work with an experienced bankruptcy attorney who can help you understand your options and make the best decisions for your financial situation. Bankruptcy can be a complex and emotional process, but it can also provide a fresh start and relief from the stress of overwhelming debt. A bankruptcy attorney can help you navigate the bankruptcy process and ensure that you are taking full advantage of all the benefits of bankruptcy.

In conclusion, if you are struggling with overwhelming debt in Colorado, Chapter 7 bankruptcy may be an option for you. There is no limit on the number of times you can file for Chapter 7 bankruptcy, but there are time limits between filings. Additionally, if you received a discharge of your debts in a previous Chapter 7 case, you cannot receive another discharge until eight years have passed from the date you filed your previous case. However, bankruptcy is a complex process and it is important to work with an experienced bankruptcy attorney who can help you understand your options and make the best decisions for your financial situation. Bankruptcy can provide relief from overwhelming debt and a fresh start for your financial future.

Protecting Your Assets in Chapter 13 Bankruptcy: Understanding Exemptions

Thu, 28 Sep 2023 19:15:52 GMT

Filing for bankruptcy can be a difficult decision, but it may also provide an opportunity for a fresh start. One of the critical concerns of people considering bankruptcy is protecting their assets, including their homes and cars. Fortunately, exemptions are available in Chapter 13 bankruptcy that can allow you to keep your essential assets while still getting out from underneath unmanageable debts. In this blog post, we will discuss the most critical factors to consider when protecting your assets in Chapter 13 Bankruptcy. We'll learn more about the exemptions available, including questions like "is my home exempted in chapter 13 bankruptcy?" and "can I keep my car after I file for chapter 13 bankruptcy?"

1. Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is an option for individuals who have a stable income source but find it difficult to keep up with their debts. It is also commonly known as the "wage earner's plan" because it allows you to create a plan to repay some or all of your debts over three to five years. During this period, the debtor is protected from collection efforts, foreclosure, and repossession as long as they make timely payments towards their repayment plan.

2. Exemptions in Chapter 13 Bankruptcy

Exemptions in bankruptcy allow the debtor to keep certain assets that would otherwise be liquidated in a Chapter 7 bankruptcy. Each state has its set of exemption laws that dictate what a debtor can keep during a Chapter 13 bankruptcy. In Colorado, exemption laws protect several essential assets, such as the debtor's primary residence, retirement accounts, and personal property such as furniture, clothing, and jewelry.

3. Home Exemptions in Chapter 13 Bankruptcy

If you file for Chapter 13 bankruptcy in Colorado, you may be eligible to keep your home through the homestead exemption. This exemption protects up to $75,000 in equity for a single homeowner and $105,000 in equity for a family. If your home has a higher equity value than these set amounts, our bankruptcy attorneys might be able to help you find alternative strategies to keep your home through a Chapter 13 bankruptcy filing.

4. Car Exemptions in Chapter 13 Bankruptcy

If you own a car, you might be able to keep it through a Chapter 13 bankruptcy filing. Colorado's bankruptcy laws allow exemptions of up to $7,500 of equity for vehicles. This amount can be combined for more than one car. It is important to note that if you have significant car debt, you must include the payments in your Chapter 13 plan, although this can be either refinanced or restructured to more manageable payments.

5. Why Consult with a Bankruptcy Attorney?

While exemptions are available to help you keep some of your essential assets, it's crucial to consult with a bankruptcy attorney to help protect your assets and navigate your debt relief options. Some bankruptcies can be complicated, and consulting with a knowledgeable bankruptcy attorney like Law Offices of Andrew F. McKenna, P.C. can ease the process and help protect your assets while filing for Chapter 13 Bankruptcy.

Filing for Chapter 13 bankruptcy can be an excellent option to manage your debts and get a fresh start financially. Understanding exemptions for protecting your assets is a vital step in the bankruptcy process. In Colorado, you can keep your home and car, among other assets, through exemptions available in Chapter 13 bankruptcy. To learn more about bankruptcy options and how our attorneys can help you navigate the process, contact Law Offices of Andrew F. McKenna, P.C. today!

Yes, You Can Rebuild Your Credit Score During Chapter 13 Bankruptcy

Thu, 31 Aug 2023 03:16:09 GMT

Have you recently filed for Chapter 13 bankruptcy? Are you worried about the negative impact it might have on your credit score and your ability to get a loan in the future? While bankruptcy can certainly affect your credit score, it’s not the end of the road for your financial future. In fact, Chapter 13 bankruptcy is designed to help you repay your debts over time and allows you to work on improving your credit score during the process. In this blog post, we’ll answer the question you might be asking yourself: Can I rebuild my credit during a Chapter 13 bankruptcy? The answer is a resounding yes, and we’ll show you how.

1. Get a copy of your credit report

One of the first steps you should take after filing for Chapter 13 bankruptcy is to get a copy of your credit report. This will allow you to see all of your debts, balances and payment history, as well as identify any errors or inaccuracies that might be negatively affecting your credit score. It’s also important to review your report regularly to ensure that everything is up-to-date and accurate.

2. Make monthly payments on time

The most important thing that you can do to rebuild your credit score during Chapter 13 bankruptcy is to make your monthly payments on time. This is key to building up your payment history, which makes up a large portion of your credit score. By making payments on time, you will start to show lenders that you are responsible and reliable when it comes to managing your finances.

3. Establish a new credit account

While it might be difficult to obtain a new line of credit during Chapter 13 bankruptcy, it’s still possible. You can apply for a secured credit card that requires a deposit upfront, or you can ask a family member or friend to co-sign on a loan. Just be sure to make all payments on time in order to build up your credit history.

4. Keep your credit utilization low

If you are able to obtain a new line of credit during Chapter 13 bankruptcy, it’s important to keep your credit utilization low. This means that you should only use a small portion of your available credit and pay it off in full each month. This shows lenders that you are responsible and only using your credit for necessary purchases, which can improve your credit score over time.

5. Work with a credit counselor

Finally, consider working with a credit counselor. They can help you develop a plan to improve your credit score and provide you with advice on how to manage your finances during Chapter 13 bankruptcy. They can also help you identify areas where you can save money and improve your overall financial situation.

Filing for Chapter 13 bankruptcy doesn’t mean that your financial future is doomed. By following these tips, you can start to rebuild your credit score during the bankruptcy process and work towards a brighter financial future. Remember: it’s important to be patient, make payments on time, and keep your credit utilization low. You’ll also want to keep a close eye on your credit report and work with a credit counselor to develop a plan for improving your credit score. With time, dedication, and a plan, you can rebuild your credit score and take control of your finances once again.

Understanding Chapter 7 Bankruptcy in Colorado

Sat, 05 Aug 2023 16:46:47 GMT

Understanding Chapter 7 Bankruptcy in Colorado

Financial struggles are becoming a common issue amongst Colorado residents. Countless situations can lead to financial problems. Job loss, medical bills, and unexpected financial emergencies are few examples of events that can result in financial stress. Many people consider bankruptcy as an option for a fresh start. In this blog post, we will discuss who qualifies for Chapter 7 bankruptcy and its benefits. We also highlight how the Law Offices Andrew F. McKenna, P.C can assist Colorado residents in these matters.

Who Qualifies for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal option allowing individuals to get rid of their debts and start fresh. Not everyone is eligible for this type of bankruptcy. The qualifications for Chapter 7 are based on your income, expenses, and the types of debts you have. In Colorado, to qualify for Chapter 7 bankruptcy, your income must be less than the state median income. If your income is above the median, you might still be eligible for Chapter 7 bankruptcy through the means test.

Benefits of Chapter 7 Bankruptcy

There are numerous advantages to filing for Chapter 7 bankruptcy. The primary advantage is that your unsecured debts such as credit cards, medical bills, and personal loans are often discharged through Chapter 7 bankruptcy. This means you will not have to pay these loans back, and creditors will no longer be able to pursue legal action against you concerning these debts. Chapter 7 bankruptcy also provides a fresh start for people struggling with debt and the possibility of rebuilding their credit score. Additionally, Chapter 7 bankruptcy has an automatic stay that halts any further collection actions from creditors.

How the Law Offices Andrew F. McKenna, P.C Can Help

Bankruptcy laws can be confusing and complicated. It is essential to have the assistance of an experienced attorney to help navigate the process. The Law Offices Andrew F. McKenna, P.C offers comprehensive bankruptcy services to its clients. The firm’s founder, Andrew F. McKenna, has over 25 years of bankruptcy law experience. Mr. McKenna works closely with all clients to create a customized debt relief strategy that meets their unique needs. With a team of experts, Law Offices Andrew F. McKenna, P.C ensures that clients receive top-notch legal services at every stage of the bankruptcy process.

Chapter 7 bankruptcy can help people start fresh by relieving them of their excess debt. Moreover, it can provide an opportunity to rebuild credit scores, stop creditor harassment, and gain financial freedom. However, the process can be complicated and requires expert guidance. If you are in financial distress, contact the Law Offices Andrew F. McKenna, P.C today to discuss your options and determine if Chapter 7 bankruptcy is the right solution for you. Let our lawyers and legal experts assist you in your journey to financial stability.

Understanding the Differences between Chapter 7 and Chapter 13 Bankruptcy

Tue, 27 Jun 2023 21:00:24 GMT

Understanding the Differences between Chapter 7 and Chapter 13 Bankruptcy

Bankruptcy might seem like a negative and stressful experience, but it can actually be a helpful solution for individuals struggling with debt. In Colorado, both Chapter 7 and Chapter 13 bankruptcy is available for those who need it. However, it’s essential to understand the differences between these two options before deciding which one to file for. In this post, we will compare Chapter 7 and Chapter 13 bankruptcy and explore who should apply for each type.

Chapter 7 bankruptcy is also known as liquidation bankruptcy. It typically suits people with lower income amounts and minimal assets since it allows them to eliminate most unsecured debts. This includes credit card debts, medical bills, and personal loans. Chapter 7 bankruptcy also involves the liquidation of any non-exempt property to pay off your creditors. Any remaining unsecured debts not covered by the sale of assets are typically discharged in the bankruptcy process.

On the other hand, Chapter 13 bankruptcy is also referred to as reorganization bankruptcy. This type of bankruptcy primarily aids people with consistent income levels and larger assets who may be facing foreclosure. In Chapter 13 bankruptcy, you will create a payment plan to repay your debts over three to five-year periods. The payment plan is based on your disposable income, and it often involves restructuring your secured debts to make them more manageable.

Who should consider filing for Chapter 7 bankruptcy? If you are enduring financial hardships and struggling to pay your debts, it might be the right option for you. You must also pass the means test, a calculation to determine if your income level qualifies you for a Chapter 7 bankruptcy. Generally speaking, if your earnings are lower than the average of families with a similar size in your state, you are likely eligible to file for Chapter 7 bankruptcy.

If you earn higher than the average income in Colorado or possess considerable assets and property, then Chapter 13 bankruptcy might be a viable alternative. Additionally, Chapter 13 bankruptcy’s payment plan provides you with an opportunity to catch up on overdue mortgage or car payments. Therefore, if you’re facing foreclosures, repossessions, or wage garnishments, Chapter 13 bankruptcy might serve you better than Chapter 7 bankruptcy.

In conclusion, choosing between Chapter 7 and Chapter 13 bankruptcy can be daunting, but it doesn’t have to be when you have access to the right information. Understanding the differences between these two types of bankruptcy and the qualifications necessary for each one allows you to make an informed decision. At Law Offices Andrew F. McKenna PC, we assist the Colorado public with bankruptcy matters. Contact us to learn more about filing for bankruptcy and how our experienced attorneys can guide you through the navigating the process.

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Can Bankruptcy Help With Utility Bills and Past-Due Accounts In Colorado?

Can Bankruptcy Help With Utility Bills and Past-Due Accounts In Colorado?

Understanding Utility Debt and Financial Strain

How Bankruptcy Can Address Utility Bills

Keeping Utility Services Active

What About Other Past-Due Accounts?

Is Bankruptcy the Right Solution?

Legal Guidance for Colorado Residents

How Bankruptcy Can Help You Get a Fresh Financial Start in Colorado

How Bankruptcy Can Help You Get a Fresh Financial Start in Colorado

Understanding Bankruptcy in Colorado

Immediate Relief Through the Automatic Stay

Eliminating or Reducing Debt

Protecting Your Property

Preventing Foreclosure and Repossession

A Path Toward Rebuilding Credit

Is Bankruptcy the Right Choice?

How Legal Guidance Can Help

Does Bankruptcy Affect Child Support or Alimony in Colorado?

Does Bankruptcy Affect Child Support or Alimony in Colorado?

Are Child Support and Alimony Dischargeable in Bankruptcy?

What Happens to Past-Due Support?

Does Bankruptcy Stop Wage Garnishment for Support?

Can Bankruptcy Help If Support Payments Are Unmanageable?

What About Property Settlements in Divorce?

How Law Offices Andrew F. McKenna, P.C. Can Help

How Chapter 13 Bankruptcy Can Help You Catch Up on Mortgage Payments in Colorado

How Chapter 13 Bankruptcy Can Help You Catch Up on Mortgage Payments in Colorado

What Is Chapter 13 Bankruptcy?

How Chapter 13 Helps With Missed Mortgage Payments

Stopping Foreclosure Through the Automatic Stay

Managing Other Debts at the Same Time

Staying Current During the Repayment Plan

Is Chapter 13 Right for Colorado Homeowners?

Can I File Bankruptcy In Colorado Without My Spouse?

Can I File Bankruptcy In Colorado Without My Spouse?

Filing Bankruptcy Individually in Colorado

Chapter 7 Bankruptcy and Your Spouse

Chapter 13 Bankruptcy and Married Filers

Will Filing Alone Affect My Spouse’s Credit?

When Filing Without Your Spouse Might Be Beneficial

Speak With a Colorado Bankruptcy Attorney

How Long Does It Take to File Bankruptcy in Colorado?

How Long Does It Take to File Bankruptcy in Colorado?

How Long Does the Bankruptcy Process Take?

1. Preparing to File (1–4 Weeks)

2. Filing Your Bankruptcy Petition (Immediate Once Prepared)

3. Chapter 7 Timeline (Approximately 3–4 Months)

4. Chapter 13 Timeline (3–5 Years)

What Can Affect How Long Bankruptcy Takes?

Why Work With a Colorado Bankruptcy Attorney?

Can I Discharge Tax Debt Through Bankruptcy in Colorado?

Can I Discharge Tax Debt Through Bankruptcy in Colorado?

﻿ Understanding Tax Debt in Bankruptcy

What Bankruptcy Cannot Do

Moving Forward with Legal Guidance

Can I File Bankruptcy More Than Once in Colorado?

Can I File Bankruptcy More Than Once in Colorado?

﻿ Filing Bankruptcy Multiple Times

Chapter 7 Bankruptcy

Chapter 13 Bankruptcy

Exceptions and Considerations

Guidance for Colorado Residents

How Chapter 13 Bankruptcy Works for People With Regular Income in Colorado

How Chapter 13 Bankruptcy Works for People With Regular Income in Colorado

﻿ Who Qualifies for Chapter 13 in Colorado?

How the Repayment Plan Works

Benefits of Chapter 13 Bankruptcy

Why Legal Guidance Matters

Filing for Bankruptcy While Unemployed in Colorado: Is It a Good Idea?

Filing for Bankruptcy While Unemployed in Colorado: Is It a Good Idea?

﻿ Understanding Bankruptcy and Unemployment

When Bankruptcy Makes Sense

What to Consider First

Get Help From a Colorado Bankruptcy Attorney

What Happens to My Home If I File for Bankruptcy in Colorado?

What Happens to My Home If I File for Bankruptcy in Colorado?

﻿ Colorado’s Homestead Exemption

Chapter 7 vs. Chapter 13 Bankruptcy

Understanding Tax Debt in Bankruptcy

Filing Bankruptcy Multiple Times

Who Qualifies for Chapter 13 in Colorado?

Understanding Bankruptcy and Unemployment

Colorado’s Homestead Exemption