Chapter 13 Bankruptcy

Longmont Chapter 13 Bankruptcy Attorney

Helping Clients Find Debt Relief in Northern Colorado

Chapter 13 bankruptcy, also known as a debt reorganization or a repayment plan, is an alternative to Chapter 7. It allows you to keep your assets, such as your home, car, and personal property, while repaying some or all of your debt over a 3- to 5-year period. The amount you pay each month is determined by your income and expenses. Once you complete the payment plan, your remaining unsecured debts will be discharged.

At Goff & Goff, LLC, we can help you determine if Chapter 13 bankruptcy is the right choice for you. Our Longmont Chapter 13 bankruptcy lawyers can guide you through every step of the process, helping you develop a feasible repayment plan and ensuring that your rights are protected.

Call (303) 816-3171 or contact us online today to schedule a free initial consultation with our Chapter 13 bankruptcy attorneys in Longmont.

How Does Chapter 13 Bankruptcy Work in Longmont?

One of the main benefits of filing for Chapter 13 bankruptcy is that it allows you to catch up on missed payments for secured debts, such as your mortgage or car loan, and avoid foreclosure or repossession. It can also help you eliminate unsecured debts, such as credit card debt and medical bills, without losing any of your assets.

The Chapter 13 bankruptcy process in Longmont generally involves the following steps:

  • Pre-filing credit counseling: Before you can file for Chapter 13 bankruptcy, you must complete a brief credit counseling course. This can be done online, over the phone, or in person. You will receive a certificate of completion, which must be filed with the court.
  • Filing the petition: After you have completed the credit counseling course, you can file the bankruptcy petition. This is the document that officially initiates the bankruptcy process. You must disclose detailed information about your debts, assets, income, expenses, and recent financial transactions.
  • Automatic stay: Once the bankruptcy petition is filed, an automatic stay goes into effect. This is a court order that prohibits your creditors from taking any further collection actions against you, including wage garnishment, foreclosure, and repossession.
  • Meeting of creditors: Approximately 30 to 45 days after the petition is filed, you must attend a meeting of creditors. This is a relatively informal proceeding where the bankruptcy trustee and your creditors can ask you questions about your financial situation and the information in your petition.
  • Developing the repayment plan: After the meeting of creditors, you have 14 days to submit a proposed repayment plan to the court. The plan must be based on your disposable income, which is the amount of money you have left over after paying your necessary living expenses.
  • Confirmation hearing: The court will hold a confirmation hearing approximately 30 to 45 days after the meeting of creditors to determine if your repayment plan is feasible and if it complies with the bankruptcy laws. The court can also modify the plan if it believes that it is unfair to your creditors.
  • Completing the repayment plan: After the court confirms your repayment plan, you must begin making the payments. The payments are typically made through the bankruptcy trustee, who will then distribute the money to your creditors. You will be required to pay a portion of your unsecured debts, such as credit card debt and medical bills, as well as any missed payments for secured debts, such as your mortgage or car loan. The length of the payment plan depends on your income and is typically 3 to 5 years. Once you have completed the payment plan, any remaining unsecured debts will be discharged.

What Are the Eligibility Requirements for Chapter 13 in Longmont?

Chapter 13 bankruptcy is not available to everyone. There are several eligibility requirements that you must meet to qualify, including the following:

  • You must be an individual. Corporations, partnerships, and other business entities are ineligible to file for Chapter 13 bankruptcy.
  • You must have a regular source of income. This can be from employment, self-employment, rental property, or other sources. If you do not have a regular source of income, you may still be able to qualify if you have a family member or other individual who can help you make the payments.
  • Your unsecured debts cannot exceed $419,275, and your secured debts cannot exceed $1,257,850. These amounts are adjusted periodically to account for inflation. If your debts exceed these limits, you will need to file for Chapter 11 bankruptcy rather than Chapter 13.
  • You must reside in Colorado for a minimum of 91 days before you can file for bankruptcy.

What Are the Benefits of Chapter 13 Bankruptcy in Longmont?

Some of the key benefits of filing for Chapter 13 bankruptcy in Longmont include:

  • Save your home from foreclosure: If you have fallen behind on your mortgage payments, the lender can initiate foreclosure proceedings. However, once you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which prohibits the lender from taking any further collection actions against you, including foreclosure. You can then catch up on the missed payments through the repayment plan.
  • Save your car from repossession: If you are behind on your car loan payments, the lender can repossess the vehicle. But once you file for Chapter 13 bankruptcy, the automatic stay will prohibit┬áthe lender from repossessing the vehicle or taking any other collection actions against you. If you have missed payments, you can make up for them by following the repayment plan.
  • Protect your property: Chapter 13 bankruptcy allows you to keep your assets, including your home, car, and personal property. However, you will need to include the value of your nonexempt assets when developing your repayment plan.
  • Repay your debts over time: Chapter 13 bankruptcy allows you to repay some or all of your debt over a 3- to 5-year period. The amount you pay each month is based on your disposable income. Once you have completed the payment plan, any remaining unsecured debts will be discharged.
  • Co-signer protection: If someone else co-signed on a loan with you, they may be held liable for the debt. But once you file for Chapter 13 bankruptcy, the co-signer will be protected. The lender will not be able to take any further collection actions against the co-signer as long as you make the payments under the repayment plan.

What Is the Chapter 13 Bankruptcy Timeline in Longmont?

One of the main differences between Chapter 13 and Chapter 7 bankruptcy is the length of the process. While Chapter 7 bankruptcy can be completed in just a few months, Chapter 13 bankruptcy typically takes 3 to 5 years.

Contact our Longmont Chapter 13 bankruptcy attorneys today to learn more about the process and how we can help you get started.

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