Filing For Chapter 13 In Colorado

Each and every state in the United States has its own variations on the bankruptcy laws because of the federal nature of the government in this country; for instance, if you are filing Chapter 13 bankruptcy, then Colorado laws state that you must have received credit counseling 180 days ahead of filing the petition. This mandatory counseling has to be taken from a government-approved credit counseling agency. The aim of the counseling is to help you avoid bankruptcy if possible. While bankruptcy was earlier looked down up on, the stigma has lessened to a significant degree as more and more people are considering this as a viable option to get out of debt.

Exemptions to Property Allowed by Colorado

Your real estate property as also mobile and fabricated homes is exempt property under Colorado bankruptcy laws. Group insurance, disability benefits, property insurance are all placed under the exemption clause. Besides, pension, personal property such as jewelry, burial plots, one vehicle for transportation to work, clothes, and household goods are all exempt. In general, there are more exempt assets under Chapter 13 than those under Chapter 7 bankruptcy. This is because in Chapter 13 bankruptcy, you agree to pay back your debts, only taking more time than initially planned.

For Those who Have Properties

While Chapter 7 bankruptcy is for those who are unable to ever repay their debts, Chapter 13 bankruptcy is for those who have property that they want to retain. Chapter 7 bankruptcy is for people with very low income, no income, or irregular income. Chapter 13 bankruptcy is also called a wage earners’ bankruptcy because it is ideal for those earning a steady, fixed income.

Conversion to Chapter 7

In the event that you are unable to pay your dues under Chapter 13 filing, you can easily convert your bankruptcy to Chapter 7 at any time in the future. For this you need to file the necessary forms and appear in court again.

Retain a Lawyer

While filing a Chapter 13 bankruptcy petition, it is best to retain the services of a lawyer. This will help you to fill the forms and also argue your case in court if the need arises. A Chapter 13 bankruptcy case proceeds for up to 7 years; so you need a lawyer who will stay committed to you for that long. In the event that you find yourself needing to shift to a Chapter 7 filing mid-way through your repayment schedule, a lawyer can help you move the required papers in court.

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