Colorado Chapter 13 Bankruptcy Law Firm
If you do not qualify for Chapter 7 bankruptcy you may still qualify for a Chapter 13 bankruptcy. This is also known as Wage Earner Bankruptcy because you are still earning an income and meet other requirements. Under Colorado Chapter 13 laws we prepare and establish a plan to repay your debt over a period of three to five years. You get to keep most, if not all, of the possessions you worked so hard to acquire. When you complete the plan you will be debt free.
In some situations a second mortgage on your home can be eliminated in Chapter 13 bankruptcy through a process referred to as “lien stripping.” Your second mortgage can be stripped only when the current value of your home is less than what you owe on your first mortgage.
For example, let’s say you own a home currently worth $200,000 and you have two mortgages. The first mortgage is for $225,000 and the second is for $50,000. Because the first mortgage is greater than the actual value of your home, the entire $50,000 second mortgage is unsecured and can be stripped. In this scenario, when your bankruptcy is filed, the second mortgage would be completely eliminated by order of the bankruptcy court. However, in the same scenario, if your first mortgage was for only $175,000, the second mortgage could not be eliminated because the first mortgage is less than the value of the home.
How your Allstate Law Center Chapter 13 bankruptcy lawyer guides you through the process:
Filing for Colorado personal bankruptcy begins by determining which option, Chapter 7 or Chapter 13, is the best choice for your financial circumstances. Allstate Law Center lawyers are experienced in handling both of these types of bankruptcy. We help you determine which bankruptcy process is the right choice for you.
When you file for Chapter 13 in Colorado, we prepare and establish a repayment plan to pay off your debts over a three to five year period—unlike a Chapter 7 bankruptcy, where most debts are eliminated without repayment. You are able to keep your home and repay any delinquent mortgage payments in the plan. Allstate Law Center Chapter 13 lawyers at our firm have the knowledge and experience needed to analyze your financial situation and work with the trustee to establish a viable repayment plan when you qualify for this bankruptcy option.
Excellent planning is the key to a successful Chapter 13 filing:
Under Chapter 13, you must qualify and have a solid repayment plan. Some of the Chapter 13 requirements include:
- Specific limitations govern the amount of secured and unsecured debt that you can have to qualify for a Colorado personal bankruptcy under Chapter 13. These limitations change to adjust to the change in the consumer price index.
- If your monthly income is greater than Colorado’s median income, your repayment plan must be for five years. You are not permitted to have a repayment plan that exceeds the five-year period.
- Under a Chapter 13 bankruptcy, certain priority claims must be paid off first through your repayment plan. For example, past-due child support or tax bills must be paid off in full through your repayment plan.
Allstate Law Center lawyers know the details of Colorado’s complex bankruptcy laws. We will determine if you qualify for a Chapter 13 bankruptcy and can help you create a repayment plan that meets all requirements to make sure it is approved.
Allstate Law Center Chapter 13 lawyers will determine if a Wage Earner Bankruptcy is your best option:
Chapter 13 is a good option for you if:
- You want to avoid foreclosure on your home.
- You do not want your car repossessed.
- You have significant equity in your home or other property that you want to keep.
- You have regular income for your monthly expenses, but are unable to keep up with your scheduled payments and a reduction in your monthly payment amounts would benefit you
- You are looking to protect co-signers or co-debtors.
- You owe taxes that are not dischargeable and need a payment plan to avoid wage garnishment or bank levies.
Colorado Bankruptcy Lawyers Can Help Save Your Home:
If it has become difficult to meet your monthly mortgage payments or if you have missed payments and fear the bank is preparing to foreclose, contact the Allstate Law Center before it’s too late. We will assess your situation and determine the best course of action to help you keep your home. We will handle foreclosure situation as priority #1. We can discuss with you by phone today, without delay. Or, if you prefer, you can come into our offices and meet with us. Time is of the essence. Call today at 877-490-3333.
You need an experienced law firm to handle your bankruptcy. Let the Allstate Law Center work with you to determine which bankruptcy option is best for your financial circumstances. Contact us today.