Longmont Chapter 7 Bankruptcy
Get The Fresh Start You Deserve
Chapter 7 bankruptcy is a powerful tool that can eliminate your unsecured debts, such as credit card debt and medical bills. You may be able to keep your home and car, and you can rebuild your credit after a Chapter 7 bankruptcy.
Our Longmont Chapter 7 bankruptcy lawyers will guide you through the process, ensuring that you are able to take full advantage of the benefits of a Chapter 7 bankruptcy. We have helped people in Longmont, Boulder, and throughout the surrounding areas find debt relief.
Chapter 7 Bankruptcy Process
The Chapter 7 bankruptcy process begins by filing a petition with the bankruptcy court. Our Longmont Chapter 7 bankruptcy attorneys will help you complete the bankruptcy petition and file it with the court. The court will issue an automatic stay, which will stop all collection actions, including foreclosure, repossession, and wage garnishment.
The court will then appoint a bankruptcy trustee to oversee your case. The trustee will review your bankruptcy petition and schedules and may ask you to provide additional information or documentation. You will need to attend a meeting of creditors, where the trustee will ask you questions about your bankruptcy petition. Our Longmont Chapter 7 bankruptcy lawyers will be by your side at the meeting of creditors to ensure your rights are protected.
The trustee will then determine if you have any nonexempt assets that can be liquidated to pay your creditors. If you do not have any nonexempt assets, the trustee will file a no-asset report, and you will proceed to receive your discharge. If you do have nonexempt assets, you may need to surrender them to the trustee, who will sell them and use the proceeds to pay your creditors.
After you receive your discharge, your unsecured debts will be eliminated. You will not be responsible for paying any of the debts that were discharged.
Chapter 7 Bankruptcy Eligibility
Not everyone is eligible for a Chapter 7 bankruptcy. To qualify, you must pass the Chapter 7 means test. The means test compares your income to the median income in Colorado. If your income is lower than the median income, you will qualify for a Chapter 7 bankruptcy. If your income is higher than the median income, you may need to deduct allowable expenses or you may need to file a Chapter 13 bankruptcy..
Our Longmont Chapter 7 bankruptcy lawyers will review your income and expenses to determine if you are eligible for a Chapter 7 bankruptcy. If you are not eligible, we will help you explore your other options for debt relief.
Colorado Bankruptcy Exemptions
Most Chapter 7 bankruptcy cases are no-asset cases, meaning the debtor does not have any nonexempt assets that can be liquidated to pay creditors. This is because Colorado has generous bankruptcy exemptions.
The Colorado bankruptcy exemptions include:
- Homestead exemption
- Household goods exemption
- Motor vehicle exemption
- Tools of the Trade exemption
- Clothing exemption
- Jewelry exemption
- Firearms exemption
- Miscellaneous exemptions
Our Longmont Chapter 7 bankruptcy lawyers will help you determine which exemptions you can use to protect your assets. Most of our clients are able to keep all of their assets.
How Long Does It Take to Get a Discharge in Chapter 7?
Most Chapter 7 bankruptcy cases last between 3 and 4 months. You will need to complete credit counseling courses before your discharge can be entered. The courses can be completed online or over the phone, and they can take about an hour to complete depending on the course.
After you complete the courses, the bankruptcy court will enter your discharge. Once your discharge is entered, your unsecured debts will be eliminated. You will not be responsible for paying any of the debts that were discharged.
Rebuilding Credit After Chapter 7
A Chapter 7 bankruptcy will remain on your credit report for 10 years. However, you can begin rebuilding your credit immediately after your bankruptcy is over.
To rebuild your credit, you should:
- Monitor your credit report: Make sure that your discharged debts are reported as “discharged in bankruptcy” and that your other debts are being reported correctly.
- Pay your bills on time: Payment history is the most important factor in calculating your credit score. Paying your bills on time will help you rebuild your credit.
- Keep your credit card balances low: Your credit utilization ratio is the second most important factor in calculating your credit score. Your credit utilization ratio is calculated by dividing your credit card balances by your credit card limits. Keeping your balances low will help you rebuild your credit.
You can obtain a secured credit card or a credit builder loan to help you rebuild your credit. A secured credit card is a credit card that is secured by a cash deposit. A credit builder loan is a loan that is secured by a certificate of deposit. Both types of credit products are relatively easy to obtain, even if you have poor credit.
Get the Help You Need Today
If you are struggling with debt, our Longmont Chapter 7 bankruptcy lawyers are here to help. We will take the time to understand your situation and help you find the debt relief you need.