Centennial Asset Protection Attorney
Protect Your Property in Lone Tree and Douglas County and Throughout Colorado
Many individuals considering financial relief through bankruptcy become intimidated by the prospect of asset loss, especially in Chapter 7 bankruptcy’s liquidation process. The reality is most essential forms of property can be exempted and protected from liquidation. Furthermore, inaction in the face of mounting debt can result in creditors taking matters into their own hands. Creditors may attempt to collect on debts through wage garnishments, bank account levies, judgment liens, and repossession of assets.
If you wish to protect your assets, you must take decisive steps to address exorbitant debts. Our Centennial asset protection lawyer at Norton Law, P.C. can help you leverage bankruptcy stop imminent or ongoing collection efforts. We have over 15 years of legal experience and are committed to helping you overcome financial difficulties. When you meet with our team, we will carefully review your situation and develop a plan that will secure relief while protecting the assets that are most important to you.
How Bankruptcy Can Protect Your Assets
Creditors will resort to numerous tactics to collect on a delinquent debt. If phone calls and letters fail to produce results, collection agencies may pursue court judgments that allow them to carry out wage garnishments, bank account levies, and repossession of financed assets. They may even be able to place one or more judgment liens on your real estate property.
Filing for bankruptcy can help you avoid and stop these damaging collection actions. As soon as you file, you will benefit from the automatic stay, a court order that freezes all collection activity. The automatic stay generally remains in effect throughout the bankruptcy process.
Chapter 7 bankruptcy involves a liquidation process where nonexempt assets are sold to partially settle outstanding debts. Many are wary of liquidation, but the impact of the process can be minimized through careful use of the state of Colorado’s generous exemption schedules. Any exempt asset will not be liquidated.
In Colorado, Chapter 7 bankruptcy filers can exempt:
- Up to $75,000 of equity in your home (and up to $105,000 of equity if you, your spouse, or any of your dependents are disabled or at least 60 years or old)
- Up to $7,500 of value in as many as 2 vehicles or bicycles (and up to $12,500 in value if you, your spouse, or any of your dependents are disabled or at least 60 years old)
- Up to $2,000 in value in clothing
- Up to $3,000 in household goods, including furniture, appliances, dishes, and electronics
- Up to $2,500 in watches and jewelry
- Up to $30,000 in tools of your trade for your primary occupation
- At least 75% of your wages
- All qualifying pension, retirement, or deferred compensation plans
Chapter 13 bankruptcy does not include liquidation and instead involves reorganizing your debts and proposing a repayment plan. This plan will partially address your outstanding obligations based on your current ability to pay, not the total amount of your debt. You will need to pay a set lump amount for a period of 3 to 5 years.
Filing for Chapter 13 bankruptcy can sometimes be especially useful when looking to protect key assets. The bankruptcy’s repayment plan can facilitate reconciliation or a repayment of the value of the assets you wish to protect. You may also be able to benefit from the automatic stay’s powerful protections for up to 5 years, giving you ample time to raise funds and reorganize finances.
Completing a Chapter 7 or Chapter 13 bankruptcy generally results in the discharging of unsecured debts. This means you can discharge credit card debt, medical debt, unpaid utility bills, personal loans, and more. In some specific situations, you may also be able to discharge tax debt.
If you need financial relief through bankruptcy but are concerned about losing certain assets, our Centennial asset protection attorney at Norton Law, P.C. can help you explore your options. We are familiar with how to make the most of Chapter 7 and Chapter 13 bankruptcies and can leverage our knowledge and resources to help safeguard what is most important to you. Our lawyer directly handles each of our firm’s cases and will work closely with you to address your concerns and make a plan for the items you are most interested in protecting.
A Supportive & Compassionate Approach to Bankruptcy
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