How to File for Bankruptcy in Colorado
Filing for bankruptcy in Colorado is a process that requires many of the same steps as filing for bankruptcy throughout the rest of the country. It is both useful and necessary to become familiar with federal bankruptcy laws before taking any steps to file in the state of Colorado. It is important to become familiar with the forms of bankruptcy that are available very early in the process.
Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. This form of bankruptcy allows for debts to be discharged through the court.
Chapter 13 bankruptcy is another common option throughout the country. This form of bankruptcy allows for a payment plan to be set up through the court.
There are also several other forms of bankruptcy that are used less commonly. Chapter 12 bankruptcy is an option that's available to farmers and fishermen. Chapter 11 bankruptcy is an option that is available to certain people with large debt amounts or business debts. There are several factors that are used to determine which form of bankruptcy is appropriate for a debtor.
Beginning the Bankruptcy Process in Colorado
One of the most important steps in the bankruptcy process actually takes place before any paperwork is filed with the court. A person must complete a credit counseling course during the six months leading up to filing. This course must be provided by an agency that is approved in the state of Colorado. The list of approved providers for this course can be accessed here. It is also necessary to complete a debtor education course during the bankruptcy process. The list of approved providers for this required course can be accessed here. The bankruptcy process officially begins when a person files a petition with the bankruptcy court in Colorado. This formal petition is important because it activates something called an automatic stay. An automatic stay officially prevents all creditors from attempting to contact a debtor or collect any debts.
Key Steps in the Bankruptcy Process
There are several steps in the bankruptcy process that are mandatory for all creditors. One of these steps is something called a means test. A means test requires a debtor to submit detailed information regarding income, assets, liabilities and more to the court. The information submitted as part of a means test will help to determine which form of bankruptcy is appropriate for a debtor. Another necessary step is something called a meeting of creditors. This is a required meeting that all debtors must attend at a location that is assigned by the court. The meeting provides creditors with an opportunity to prove that a debtor possesses nonexempt assets that can be forfeited as part of the bankruptcy process.
A Closer Look at Filing for Bankruptcy in Colorado
The United States Bankruptcy Court for the District of Colorado is located in Denver. The filing fee for Chapter 7 bankruptcy in Colorado is $335. The filing fee for Chapter 13 bankruptcy in Colorado is $310. A full list of the fees that a person can anticipate when filing for bankruptcy of any form in the state of Colorado can be accessed here. A compilation of the forms needed when filing for bankruptcy in Colorado can be accessed here.
Consulting with a bankruptcy attorney in the state of Colorado is highly recommended. The complicated nature of the bankruptcy process can be overwhelming for an individual without any familiarity with the legal process. Accuracy and honesty are important when it comes to filing paperwork with the court. Any unintentional errors or intentional attempts to conceal information regarding assets could result in delays, fees and penalties.