If you’re considering filing bankruptcy in Aurora, CO, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a legal process that allows individuals and businesses to seek relief from overwhelming debt and get a fresh financial start. Bankruptcy laws in the United States are federal laws, but they can vary slightly from state to state. To determine if you are qualified to file for bankruptcy in Aurora, Colorado, it’s essential to understand the general eligibility requirements and specific rules that may apply in your jurisdiction.

1. Residency and Jurisdiction: To file for bankruptcy in Aurora, Colorado, you must meet certain residency requirements. Generally, you need to have lived in Colorado for at least 180 days before filing your bankruptcy case. Additionally, you should file your bankruptcy petition in the appropriate federal bankruptcy court for the district that covers Aurora.

2. Means Test: One of the key eligibility factors for individuals filing for bankruptcy is the means test. This test is designed to determine if your income is below a certain threshold, allowing you to file for Chapter 7 bankruptcy, which provides for the discharge of most unsecured debts. If your income exceeds the threshold, you may still be eligible to file for Chapter 13 bankruptcy, which involves a repayment plan.

Under the means test, your average monthly income for the six months leading up to your bankruptcy filing must be lower than the median income for a household of your size in Colorado. If it is below this threshold, you pass the means test and can file for Chapter 7 bankruptcy. If your income is higher, you may still qualify for Chapter 7 if you can demonstrate that you have significant expenses or if your disposable income, after deducting certain allowed expenses, does not leave enough to repay your debts under Chapter 13.

3. Credit Counseling Requirement: Before filing for bankruptcy in Aurora, you must complete a credit counseling course from an approved agency. This requirement aims to ensure that you explore alternative solutions to your financial problems before proceeding with bankruptcy. You will need to provide proof of completion when you file your bankruptcy petition.

4. Adequate Documentation: You must provide comprehensive financial documentation when filing for bankruptcy. This includes a list of all your assets, liabilities, income, expenses, contracts, leases, and other financial information. Gathering this information accurately is crucial for a successful bankruptcy filing.

5. Previous Bankruptcy Discharges: If you have previously filed for bankruptcy and received a discharge, there are time limitations on when you can file for bankruptcy again. For example, if you received a discharge in a Chapter 7 case, you must wait eight years from the date of the previous filing to file for another Chapter 7 discharge. If you previously filed for Chapter 13 bankruptcy and received a discharge, you typically need to wait four years from the date of the previous filing to file for Chapter 13 again.

6. Completing Required Courses: In addition to the credit counseling course, you must also complete a debtor education course from an approved agency after filing for bankruptcy but before receiving a discharge. This course is intended to help you learn about financial management and budgeting.

7. Good Faith Filing: You must file for bankruptcy in good faith. This means that you cannot file for bankruptcy with fraudulent intentions or to abuse the system. If the court believes that your filing is in bad faith, it may dismiss your case or deny you a discharge.

It’s essential to consult with a qualified bankruptcy attorney in Aurora, Colorado, to understand how these eligibility requirements apply to your specific financial situation. An attorney can help you navigate the complex bankruptcy process, ensure that you meet all the necessary criteria, and guide you towards the most appropriate bankruptcy chapter for your needs.

Keep in mind that bankruptcy is a significant financial decision with long-term consequences, so it’s crucial to explore all your options and understand the implications before proceeding.

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Do You Need a Lawyer to File For Bankruptcy in Aurora, CO?

While it is not an absolute requirement to hire a lawyer to file for bankruptcy in Aurora, Colorado, having legal representation can be highly beneficial and is strongly recommended. Bankruptcy laws are complex and involve a considerable amount of paperwork, legal procedures, and potential pitfalls that can significantly impact the outcome of your case.

Here are several reasons why you should consider hiring a lawyer when filing for bankruptcy:

1. Understanding the Bankruptcy Code: Bankruptcy laws are intricate, and they can vary depending on your specific circumstances and the type of bankruptcy you’re filing for (Chapter 7, Chapter 13, etc.). A qualified bankruptcy attorney in Aurora is well-versed in the local bankruptcy court’s rules and procedures, as well as the federal Bankruptcy Code. They can help you navigate these laws to ensure you meet all the necessary requirements and deadlines.
2. Customized Advice: A bankruptcy attorney can provide you with personalized advice based on your unique financial situation. They will review your financial records, assess your assets and liabilities, and help you determine which chapter of bankruptcy is most suitable for your needs. This tailored guidance can lead to a more favorable outcome and potentially save you money and assets.
3. Protection from Mistakes: Filing for bankruptcy involves a significant amount of paperwork, including petitions, schedules, and statements. Any errors or omissions in your bankruptcy paperwork can lead to delays, complications, or even dismissal of your case. An attorney can ensure that your paperwork is complete, accurate, and compliant with the law, reducing the risk of costly mistakes.
4. Debt Discharge Maximization: Bankruptcy attorneys are skilled at identifying which debts are dischargeable and which are not. They can help you maximize the amount of debt that can be discharged, potentially allowing you to emerge from bankruptcy with a cleaner financial slate. Without legal guidance, you might miss opportunities to discharge certain debts.
5. Protection from Creditors: Once you file for bankruptcy, an automatic stay is put in place, preventing creditors from taking further collection actions against you. However, creditors may still attempt to challenge your bankruptcy or seek exceptions to the automatic stay. A lawyer can protect your rights and interests by representing you in court and negotiating with creditors when necessary.
6. Chapter 13 Repayment Plans: If you’re filing for Chapter 13 bankruptcy, you’ll need to propose a repayment plan to the court. An attorney can help you create a feasible plan that satisfies the court’s requirements while allowing you to retain essential assets like your home and car. They can also assist in negotiating favorable terms with creditors.
7. Legal Advocacy: In the event of any disputes or objections during your bankruptcy proceedings, an attorney can advocate on your behalf in court. They can present your case effectively and argue for the best possible outcome.
8. Long-Term Financial Guidance: Bankruptcy attorneys can provide guidance beyond the bankruptcy process. They can offer advice on rebuilding your credit, budgeting, and managing your finances to ensure you have a solid financial foundation after bankruptcy.

While hiring a bankruptcy attorney in Aurora, Colorado, involves legal fees, the potential benefits far outweigh the costs. Your attorney’s expertise can help you achieve a more successful bankruptcy outcome, protect your assets, and provide you with the support and guidance you need during a challenging financial period. Ultimately, consulting with an attorney is a wise investment in your financial future when considering bankruptcy.

Cost to File Chapter 7 Bankruptcy in Aurora, CO

The cost to file Chapter 7 bankruptcy in Aurora, Colorado, includes several components, but the primary expenses are associated with filing fees, attorney fees, and mandatory credit counseling and debtor education courses.

1. Filing Fee: The most significant upfront cost of filing for Chapter 7 bankruptcy is the filing fee paid to the bankruptcy court. These fees can change over time, so it’s essential to check the current fee on the official website of the U.S. Bankruptcy Court for the District of Colorado or consult with a bankruptcy attorney for the most up-to-date information.
2. Attorney Fees: While you are not required by law to hire an attorney to file for Chapter 7 bankruptcy, it is highly recommended due to the complexities of the process. Bankruptcy attorneys typically charge fees for their services, which can vary based on factors such as the attorney’s experience, the complexity of your case, and your location. In Aurora, Colorado, attorney fees for Chapter 7 bankruptcy can range from a few hundred to over a thousand dollars. It’s crucial to discuss fees upfront with potential attorneys and consider the value of their expertise in helping you navigate the bankruptcy process.
3. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 7 bankruptcy, you are required to complete two courses: a credit counseling course before filing and a debtor education course after filing. These courses aim to provide financial education and budgeting skills. The cost of these courses can vary, but they typically range from $26 to $59 per course. Ensure that you choose a court-approved provider for these courses to meet the bankruptcy requirements.
4. Other Possible Costs: Depending on your specific situation, there may be additional costs associated with your Chapter 7 bankruptcy. These could include fees for obtaining credit reports, notary fees, postage, and any required document translations. It’s essential to discuss potential additional costs with your attorney to budget accordingly.
5. Exemption Costs: If you have assets that are not exempt from liquidation in Chapter 7 bankruptcy, you may need to consider the cost of appraisals or valuations for those assets. In some cases, it might be more cost-effective to allow the bankruptcy trustee to sell non-exempt assets rather than covering appraisal expenses.

While filing for Chapter 7 bankruptcy can be expensive, it’s crucial to view it as an investment in your financial future. The relief and fresh start that bankruptcy provides can outweigh the costs over time. Additionally, many bankruptcy attorneys offer payment plans to help clients manage their legal fees.

Before proceeding with Chapter 7 bankruptcy in Aurora, Colorado, consult with an experienced bankruptcy attorney who can provide you with a clear understanding of the costs involved and guide you through the process to achieve the best possible outcome for your financial situation.

Cost to File Chapter 11 Bankruptcy in Aurora, CO

The cost of filing for Chapter 11 bankruptcy in Aurora, Colorado, can be substantial due to the complexities of this chapter, which is primarily designed for businesses and high-net-worth individuals seeking debt reorganization and restructuring. The cost includes various fees, legal expenses, and administrative costs.

Here’s a breakdown of the major expenses associated with filing for Chapter 11 bankruptcy:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case in the District of Colorado (which includes Aurora) is a substantial amount. The filing fee for a Chapter 11 case is $1,872. This fee can change over time, so it’s essential to verify the current fee on the official website of the U.S. Bankruptcy Court for the District of Colorado.
2. Legal Fees: Chapter 11 bankruptcy cases are highly complex and often involve significant legal work. Businesses and individuals filing for Chapter 11 typically require the assistance of experienced bankruptcy attorneys. The legal fees for Chapter 11 cases can vary significantly based on the complexity of the case, the size of the business, and the amount of debt involved. These fees can range from several thousand dollars to tens of thousands of dollars or more.
3. U.S. Trustee Fees: In a Chapter 11 case, the United States Trustee’s Office charges quarterly fees based on the debtor’s disbursements. These fees help fund the oversight of the bankruptcy case. The amount of these fees depends on the disbursements made during the case.
4. Professional Fees: In addition to legal fees, Chapter 11 cases often involve the employment of other professionals, such as financial advisors, accountants, and appraisers. These professionals help with the financial analysis, valuation of assets, and development of a reorganization plan. Their fees can also be substantial and will vary depending on the complexity of the case.
5. Court-Appointed Examiner or Trustee: In some Chapter 11 cases, the court may appoint an examiner or trustee to oversee the debtor’s operations and ensure that the case progresses efficiently. The fees for these professionals are typically paid from the bankruptcy estate, adding to the overall cost.
6. Fees for Creditors’ Committees: In larger Chapter 11 cases, creditors may form committees to represent their interests. These committees may incur fees for legal counsel and other expenses, which can also be charged to the bankruptcy estate.
7. Operational Costs: During the Chapter 11 process, the debtor must continue to operate its business. This includes covering ongoing operational expenses such as rent, utilities, employee wages, and supplier payments. These costs can add up significantly, depending on the size and nature of the business.
8. Administrative Costs: There are various administrative costs associated with the Chapter 11 process, including court filing fees for motions, notices, and other required documents.

Given the complexity and costs associated with Chapter 11 bankruptcy, it’s crucial for businesses and individuals considering this option to thoroughly assess their financial situation and consult with experienced bankruptcy attorneys who can provide guidance on the potential costs and benefits. Engaging legal counsel early in the process can help streamline the bankruptcy proceedings and improve the chances of a successful debt reorganization and restructuring.

Cost to File Chapter 13 Bankruptcy in Aurora, CO

The cost to file Chapter 13 bankruptcy in Aurora, Colorado, involves several components, including filing fees, attorney fees, and expenses related to mandatory credit counseling and debtor education courses. Here’s a breakdown of these costs:

1. Filing Fee: The primary upfront cost of filing for Chapter 13 bankruptcy is the filing fee paid to the bankruptcy court. The filing fee for Chapter 13 bankruptcy in the District of Colorado (which includes Aurora) is $365. However, please note that these fees can change over time, so it’s essential to verify the current fee on the official website of the U.S. Bankruptcy Court for the District of Colorado.
2. Attorney Fees: While you can technically file for Chapter 13 bankruptcy without an attorney, it is highly recommended to have legal representation due to the complexities of the process. Bankruptcy attorneys typically charge fees for their services, which can vary based on factors such as the attorney’s experience, the complexity of your case, and your location. In Aurora, Colorado, attorney fees for Chapter 13 bankruptcy can range from several hundred to several thousand dollars. Your attorney will typically work out a payment plan to help you cover these fees over time.
3. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete two courses: a credit counseling course before filing and a debtor education course after filing. These courses aim to provide financial education and budgeting skills. The cost of these courses can vary but typically ranges from $25 to $57 per course. Make sure to choose a court-approved provider for these courses to meet the bankruptcy requirements.
4. Chapter 13 Plan Payments: In a Chapter 13 bankruptcy, you will propose a repayment plan to the court, outlining how you will repay your creditors over a period of three to five years. Your monthly plan payments will be a significant ongoing expense during the bankruptcy process. The amount of these payments depends on your disposable income and the terms of your plan.
5. Additional Costs: Depending on your specific situation, there may be additional costs associated with your Chapter 13 bankruptcy, such as fees for obtaining credit reports, notary fees, postage, and any required document translations. Discuss these potential additional costs with your attorney.
6. Trustee’s Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your plan and collect and distribute payments to creditors. The trustee is entitled to a percentage of the payments made under your plan as a fee for their services. This fee is typically built into your monthly plan payments and does not require a separate upfront payment.

It’s important to recognize that Chapter 13 bankruptcy can offer significant advantages, such as the ability to save your home from foreclosure and restructure your debt in a manageable way. While there are costs associated with the process, these costs can often be spread out over the duration of your repayment plan, making it more manageable for individuals with a steady income.

Reliable Bankruptcy Attorneys in Aurora, CO

Below is a list of reputable bankruptcy attorneys in Aurora, CO. They can help you with both personal and business bankruptcy information.

Consumer Law Pro PC
2851 S Parker Rd #1158, Aurora, CO 80014, United States

Sweeney Law
10660 E Bethany Dr, Aurora, CO 80014, United States

Law Offices Of Jane L Stobbs PC
2260 S Xanadu Way #275, Aurora, CO 80014, United States

The Aschenberg Law Group – Family Law Attorney In Aurora CO
6105 S Main St #200, Aurora, CO 80016, United States

Henze & Associates, P.C.
14231 E 4th Ave #350, Aurora, CO 80011, United States

Aurora, CO Zip Codes We Proudly Serve:

80010, 80011, 80012, 80013, 80014, 80015, 80016, 80017, 80018, 80019, 80045, 80102, 80112, 80137, 80138, 80220, 80231, 80247

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