Parker Colorado Chapter 13 Bankruptcy Lawyer

Chapter 13 Bankruptcy Information
Colorado Attorney R. Brian Daniel

Many people find themselves overwhelmed by debt, often due to circumstances beyond their control.  A Chapter 13 bankruptcy can provide relief for unmanageable debt and is the best choice in most situations where a person has sufficient disposable income to partially repay his/her creditors over time and does not want to lose assets.  Chapter 13 is also a good option if your income is too high to qualify for a Chapter 7 bankruptcy; however, there are debt limitations and eligibility restrictions to consider with Chapter 13.  Due to federal bankruptcy law changes in recent years, it is best to contact a skilled Parker, Colorado Bankruptcy Attorney for advice before taking any action.

Chapter 13, allows individuals who are in debt and have regular income to develop a debt repayment plan while allowing them to keep most or all of their property.  Also known as a “reorganization bankruptcy”, Chapter 13 is an often utilized form of personal bankruptcy.  This type of bankruptcy can be used to repay secured or unsecured debts, unlike Chapter 7. 

In order to file for bankruptcy under Chapter 13, individuals must first receive credit counseling from an approved agency.  A plan is then established so that debtors can repay some or all of the debt owed to creditors.  Certain debts take priority over others, including back taxes, child support, and alimony.  Regular payments for secured debts, such as auto and mortgage loans, must be also factored into the debtor’s budget along with any arrearages on secured debt or other priority debt (taxes). Any income leftover after covering normal and reasonable monthly expenses (food, utilities, mortgage, auto payments, gas, etc.) must be applied toward the repayment of unsecured debts such as credit card bills. 

The repayment period for a Chapter 13 bankruptcy typically ranges from 3-5 years, depending upon the debt amount and the level of the debtor’s income.  Any debts remaining after the payment period has ended are discharged, meaning the debtor is no longer liable for the debts.  Before remaining debts can be discharged, individuals must show proof that they have completed a mandatory budget counseling program.  A Parker, Colorado Bankruptcy Attorney can help you locate and schedule the required budget counseling class.

There are some limitations and restrictions with this form of bankruptcy.  Businesses may not file under Chapter 13 in the name of their business.  However, business owners may file as individuals under this chapter and include business-related debts for which they are personally responsible.  To be eligible for Chapter 13, you must show proof to the bankruptcy court that you have sufficient disposable income, after subtracting certain necessary expenses, to repay your debts.  There are also maximum debt limits for filing under this chapter.  Currently, secured debts such as mortgages and car loans may not exceed $1,081,400.  In addition, unsecured debts including credit card, utility, and medical bills may not exceed $360,475.  Determining whether to file for bankruptcy protection and, if so, which Chapter best matches your current needs can be very complex.  A qualified Parker, Colorado Bankruptcy Lawyer can advise you of your best options

If you are facing a complicated legal issue, reach out to The Daniel Law Firm. We take great pride in serving clients all over Colorado. Let us discuss with you the best strategy for moving your case forward in both a positive direction and timely manner. Call us today at (303) 951-0233..

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