Chapter 7 Bankruptcy Attorneys in Boulder
Helping Clients Reduce Debt
In Chapter 7, you are required to fully disclose your assets and liabilities to the Bankruptcy Court. Your assets, minus certain exemptions, go into the bankruptcy estate, which are then liquidated to pay your debts. The remaining balances owed are then discharged. In order to obtain a bankruptcy discharge, a debtor is required to make an extensive disclosure of their assets and liabilities, as well as certain financial transactions they engaged in prior to the filing. In addition, the chapter 7 debtor is required to testify under oath regarding their financial affairs.
Many of our clients do not lose their assets in bankruptcy, because certain types of assets can be claimed as exempt.
As soon as a bankruptcy petition is filed, the law requires that all collection activity must stop, including harassing phone calls, letters, and lawsuits.
Chapter 7 Means Test: Consumer debtors who earn above-median incomes are subject to means testing, and if they fail means testing they can be required to reorganize under Chapter 13, under which payments to creditors are required for a minimum of 3 years. Higher income debtors who have enough qualifying expenses can pass the Means Test and still file for Chapter 7. Our qualified bankruptcy attorneys will help you determine whether you are eligible for Chapter 7 bankruptcy or whether you should consider other debt relief options.
Click here for an Interactive Means Test, which may assist you in determining whether you qualify to file Chapter 7 Bankruptcy. As you will see if you work on a Means Test calculator, the formula is lengthy and complex. If you are an above-median income consumer debtor, you should consult a bankruptcy lawyer to determine your eligibility to file.
As of November 1, 2023 median income for a household of 1: $74,274; household of 2 is $97,698; household of 3 is $115,443 and household of 4 is $130,450.*
*$9,900 is added for each individual in excess of 4.
For up-to-date information regarding current median income figures please click on the link below: