Clear Advice on Chapter 7 Bankruptcy

How Chapter 7 Bankruptcy Works

Chapter 7 involves filing a petition with the U.S. Bankruptcy Court. Once filed, the automatic stay generally stops collection actions, including lawsuits, wage garnishments, and creditor phone calls.

A trustee is appointed to review your financial disclosures. In most consumer cases, properly exempt property is retained, and unsecured debts are discharged within several months.

Do You Qualify for Chapter 7 Bankruptcy?

Eligibility is determined in part by the means test, which compares your income to Colorado median income levels and evaluates allowable expenses. Asset review is also critical.

Before filing, it is important to evaluate:

• Whether your income meets qualification standards

• How Colorado exemption laws protect your home, vehicle, and personal property

• Whether any recent financial transactions require review

• Whether Chapter 13 may be a better alternative

Careful analysis before filing can prevent avoidable complications.

What Chapter 7 Bankruptcy Can and Cannot Do

Chapter 7 Bankruptcy may:

• Eliminate qualifying unsecured debt

• Stop most collection activity

• Provide a relatively quick discharge

It does not automatically:

• Cure missed mortgage payments long term

• Eliminate certain taxes or domestic support obligations

• Protect property beyond available exemptions

Understanding these limits is as important as understanding the benefits.

Is Chapter 7 Right for You?

Every financial situation is different. The decision to file should be based on income, assets, long term goals, and available alternatives.

If you are considering Chapter 7 Bankruptcy in Colorado, a confidential consultation can help you determine whether filing makes sense and how to proceed carefully.

Schedule a consultation to discuss your options.

Clear advice matters before filing. We focus on:

• Whether you qualify under the means test

• How Colorado exemptions apply to your assets

• Risks that should be addressed before filing

• Whether an alternative option makes more sense

You should understand both the benefits and the limits of Chapter 7 before deciding to proceed.