Norton Law, P.C.
 
Call Us Today
 
9896 Rosemont Ave Ste 103, Lone Tree, CO 80124 | april@nortonlawpc.com
 
 
 
 
 
 
 

Chapter 7 Bankruptcy Lawyer

 
 
Chapter 7 is the most common form of personal bankruptcy filing. The basic premise of a Chapter 7 is a liquidation of a bankruptcy filer's non-exempt property in exchange for a discharge, or forgiveness, of qualifying debts- and a fresh start. In most circumstances, if you are considering bankruptcy, and are eligible for a Chapter 7, it is likely the preferred path to financial recovery.

Some qualifying features involved include your household income; whether there have been any prior bankruptcy filings and if so, how long ago; how long you have resided in Colorado; the types of debts that need to be addressed; and whether there are assets that are not protected in a Chapter 7.
 
Chapter 7 -  Bankruptcy Law in Lone Tree CO
 
 
If your household income is above the median income level, it is not an automatic preclusion from access to a Chapter 7. When the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted in 2005, a means test was implemented to create guidelines to determine whether a bankruptcy filer has the ability, after taking into consideration income and reasonable monthly expenses, to repay a portion of his/her liabilities through a Chapter 13 repayment plan. If necessary monthly expenses do not allow room for a repayment plan, Chapter 7 may still be a viable option.

Most necessary living items are protected by state statute from liquidation by a Trustee who is the case administrator. There is a monetary cap for each necessary item that must be considered (i.e. $3,000 of protection of household goods, etc.). Careful consideration and planning is essential to obtaining the most favorable result.

While a Chapter 7 is a great path to obtain a fresh start, some items like mortgage arrears, second mortgages, and back tax liability must be closely scrutinized to determine whether a 7 is the best option considering your personal circumstance.