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

Am I Qualified for Bankruptcy?

Bankruptcy is a legal mechanism that offers a financial lifeline to those drowning in debt. In Colorado Springs, CO, like other parts of the U.S., there are specific criteria one must meet to be eligible to file for bankruptcy.

First and foremost, if you’re considering Chapter 7 bankruptcy, the most common type, you’ll need to undergo a “means test.” This test gauges your financial capacity by comparing your monthly income to the median income of a Colorado household of similar size. If your income is below the median, you can qualify for Chapter 7. If not, you might still be eligible if you can show that, after accounting for specific allowed expenses and payments on secured debts, you have little to no disposable income.

Chapter 13 bankruptcy, often termed the “wage earner’s plan,” is designed for individuals with a regular income source who wish to pay off their debts over time. The qualification for this chapter isn’t income-based, but rather debt-based. By the time you file, your unsecured debts (like credit card debt) cannot surpass a specific amount, and the same applies to your secured debts (like mortgages).

Chapter 11 is mainly for businesses but can be used by individuals as well. There are no specific debt limits, but due to its complexity and cost, it’s more common for larger debt loads.

Lastly, you must also receive credit counseling from an approved agency within 180 days before filing.

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

It is not a legal requirement to have a lawyer when filing for bankruptcy in Colorado Springs. However, the process is intricate and demands a comprehensive understanding of both federal and state laws.

A lawyer can guide you on which bankruptcy chapter is suitable for your situation. They can also ensure that you complete all the required forms accurately and help you navigate the local court system. Moreover, an attorney can protect you from potential pitfalls and ensure you understand the long-term implications of your decisions.

If you decide to go solo, you’ll be considered a “pro se” filer. While the courts offer some resources to assist pro se filers, the process can be overwhelming for many. Given the gravity of a bankruptcy filing and its impact on your financial future, investing in an attorney is often a wise choice.

Cost to File Chapter 7 Bankruptcy in Colorado Springs, CO

The cost to file for Chapter 7 bankruptcy in Colorado Springs is multifaceted. There’s a filing fee that you’ll need to pay to the court, which as of my last update was $398. This fee covers the administrative costs of processing your case.

In addition to the filing fee, you might incur costs for mandatory credit counseling and debtor education courses. These usually range between $25 to $60 per course.Lastly, if you hire an attorney, which is highly recommended due to the intricacies of the process, their fees can vary significantly. As of my last update, typical attorney fees in Colorado Springs ranged from $1,100 to $2,700 for Chapter 7.

Lastly, if you hire an attorney, which is highly recommended due to the intricacies of the process, their fees can vary significantly. As of my last update, typical attorney fees in Colorado Springs ranged from $1,200 to $2,800 for Chapter 7.

Cost to File Chapter 11 Bankruptcy in Colorado Springs, CO

Chapter 11 bankruptcy is notably more complex and, as such, is more expensive. The filing fee alone was $1,938 as of my last update. Furthermore, there are administrative fees that may accrue during the process.

Attorney fees for Chapter 11 can be substantial, often ranging from $11,000 to $55,000 or even higher, depending on the case’s complexity. This is primarily because Chapter 11 cases often involve restructuring business operations, debts, and assets.

Cost to File Chapter 13 Bankruptcy in Colorado Springs, CO

Chapter 13 bankruptcy offers a way to reorganize and repay debts over time. The court’s filing fee for Chapter 13 was $393 as of my last update. Like with Chapter 7, you’ll also have costs related to credit counseling and debtor education.

Attorney fees for Chapter 13 can vary. On average, they might range between $3,200 to $6,400 in Colorado Springs. It’s essential to note that some of these fees can be included in the repayment plan, spreading the cost over time.

In conclusion, bankruptcy offers a way out for those mired in debt. However, understanding the qualifications, costs, and the potential need for an attorney is vital before you embark on this path. Remember to always consult with a local bankruptcy attorney to get accurate and current information tailored to your situation.

Reliable Bankruptcy Attorneys in Colorado Springs, CO

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

Law Office of Stephen H. Swift, P.C.

733 E Costilla St, Colorado Springs, CO 80903, United States

McLaughlin Bankruptcy

210 N Corona St, Colorado Springs, CO 80903, United States

Wagner Law Office, P.C.

1755 Telstar Dr Ste. 300, Colorado Springs, CO 80920, United States

Doig Law Group

102 S Tejon St #1100, Colorado Springs, CO 80903, United States

Law Office of Geoffrey H. Atzbach, PC

104 S Cascade Ave Suite 200-C, Colorado Springs, CO 80903, United States

Colorado Springs, CO Zip Codes We Proudly Serve:

80809, 80829, 80831, 80903, 80904, 80905, 80906, 80907, 80908, 80909, 80910, 80911, 80914, 80915, 80916, 80917, 80918, 80919, 80920, 80921, 80922

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