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

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Colorado, or any other state in the United States, depends on various factors, including your financial situation, income, and the type of bankruptcy you wish to file. Bankruptcy is a legal process that allows individuals and businesses to discharge or restructure their debts when they are unable to meet their financial obligations. In Colorado, as in the rest of the country, there are specific eligibility criteria and requirements for different types of bankruptcy.

1. Chapter 7 Bankruptcy:
   • Income: To qualify for Chapter 7 bankruptcy in Colorado, you must pass the means test, which is a comparison of your income to the median income in the state. If your income is below the median, you typically qualify. If it’s above the median, you may still be eligible if you can demonstrate that you have limited disposable income after accounting for necessary expenses. Consult with a bankruptcy attorney to determine if you meet the income requirements.
   • Previous Bankruptcies: If you’ve received a Chapter 7 discharge in the past eight years or a Chapter 13 discharge in the past six years, you may not be eligible for Chapter 7 bankruptcy again.
2. Chapter 13 Bankruptcy:
   • Regular Income: Chapter 13 bankruptcy is often called the “wage earner’s” or “reorganization” bankruptcy. To qualify, you need a regular source of income to create a repayment plan that allows you to repay a portion of your debts over a three to five-year period.
   • Debt Limits: There are debt limits for Chapter 13 bankruptcy in Colorado. These limits may change over time due to inflation adjustments.
3. Chapter 11 Bankruptcy (for Businesses):
   • Businesses and individuals with high levels of debt can file for Chapter 11 bankruptcy. This type of bankruptcy is typically used for reorganizing business debts, and there are no specific income requirements.
   • Chapter 11 involves creating a repayment plan that must be approved by creditors and the court, allowing the debtor to continue operations while repaying their debts over time.
4. Chapter 12 Bankruptcy (for Farmers and Fishermen):
   • Chapter 12 bankruptcy is designed specifically for family farmers and fishermen. To qualify, you must meet certain criteria related to your income, debt, and occupation.
   • The eligibility requirements for Chapter 12 are more relaxed than those for other bankruptcy chapters.
5. Other Considerations:
   • Credit Counseling: Before filing for bankruptcy in Colorado, you must complete a credit counseling course from an approved agency within 180 days prior to filing.
   • Bankruptcy Education Course: You must also complete a debtor education course after filing for bankruptcy but before receiving your discharge.

It’s crucial to consult with a qualified bankruptcy attorney in Colorado to assess your specific financial situation and determine the best course of action. Bankruptcy laws and regulations can be complex, and an attorney can help you navigate the process, ensuring that you meet all the necessary qualifications and requirements.

Additionally, bankruptcy can have significant long-term consequences on your credit and financial future, so it’s essential to fully understand the implications before proceeding. Your attorney can provide guidance on whether bankruptcy is the right solution for your situation and help you explore alternatives if applicable.

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

While it is not legally required to hire a lawyer to file for bankruptcy in Colorado, it is highly advisable to do so. Bankruptcy is a complex legal process with potential long-term consequences for your financial future. Having an experienced bankruptcy attorney can greatly increase your chances of a successful outcome and help you navigate the process more smoothly.

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

1. Legal Expertise:
   • Bankruptcy laws are intricate and can be challenging to understand fully. An experienced bankruptcy attorney has the legal knowledge and expertise to guide you through the process, ensuring that you meet all legal requirements and deadlines.
2. Personalized Advice:
   • Every individual’s financial situation is unique, and the appropriate bankruptcy chapter and strategy can vary. A lawyer can assess your specific circumstances and provide personalized advice on whether bankruptcy is the right option for you or if there are better alternatives available.
3. Assistance with Paperwork:
   • Filing for bankruptcy involves a substantial amount of paperwork and documentation. An attorney can help you gather the necessary financial records, complete the required forms accurately, and file them correctly with the bankruptcy court.
4. Protection from Creditors:
   • Once you hire an attorney and initiate the bankruptcy process, an automatic stay goes into effect. This legal order prohibits creditors from taking any further collection actions against you, such as harassment, lawsuits, garnishments, or repossessions. Your attorney will handle communications with creditors on your behalf.
5. Avoiding Costly Mistakes:
   • Making errors or omissions in your bankruptcy filing can lead to delays, complications, or even the dismissal of your case. An attorney can help you avoid these costly mistakes and ensure that your bankruptcy petition is complete and accurate.
6. Chapter Selection:
   • Determining the most suitable bankruptcy chapter for your situation is crucial. A lawyer can advise you on whether Chapter 7, Chapter 13, or another chapter is the best option for your specific financial circumstances, and they can help you navigate the eligibility requirements.
7. Protection of Assets:
   • Bankruptcy exemptions in Colorado allow you to protect certain property and assets from being liquidated to pay off debts. An attorney can help you maximize the use of these exemptions to preserve your assets to the greatest extent possible.
8. Representation in Court:
   • While many bankruptcy cases do not require a formal court appearance, having an attorney means you have representation if a hearing or court appearance becomes necessary. Your attorney can advocate for your interests and protect your rights in court.
9. Post-Bankruptcy Guidance:
   • After your bankruptcy case is completed, you’ll need guidance on rebuilding your credit and managing your finances. An attorney can offer valuable advice on how to establish a solid financial foundation for the future.

While hiring a bankruptcy attorney in Colorado involves legal fees, the benefits of having professional guidance throughout the bankruptcy process often outweigh the costs. If you are considering bankruptcy as a solution to your financial difficulties, it is highly recommended to consult with an experienced attorney who can help you make informed decisions and work towards a fresh financial start.

Cost to File Chapter 7 Bankruptcy in Colorado

The cost to file Chapter 7 bankruptcy in Colorado consists of several fees and expenses. It’s essential to understand these costs to make an informed decision about pursuing bankruptcy as a debt relief option.

1. Filing Fee: The primary expense is the filing fee, which is paid to the bankruptcy court. The filing fee for a Chapter 7 bankruptcy case in Colorado is $370. This fee may change over time due to adjustments for inflation, so it’s essential to check the most current fee with the bankruptcy court or your attorney.
2. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 7 bankruptcy, you are required to complete credit counseling and debtor education courses. These courses typically cost between $26 to $58 each and may vary depending on the service provider you choose. It’s essential to use an approved course provider to ensure compliance with bankruptcy regulations.
3. Attorney Fees: While you have the option to file for Chapter 7 bankruptcy without an attorney (pro se), it is highly recommended to hire an experienced bankruptcy attorney. Attorney fees can vary significantly based on your location and the complexity of your case. On average, attorney fees for a Chapter 7 bankruptcy in Colorado can range from $1,210 to $2,600 or more. The attorney’s expertise can be invaluable in navigating the complex legal process, ensuring your eligibility, and maximizing your debt discharge.
4. Miscellaneous Costs: There may be additional costs associated with your bankruptcy, such as fees for obtaining credit reports, notary fees, postage, and document copying expenses. These costs can add up, but they are generally relatively minor compared to the filing fee and attorney fees.
5. Trustee’s Fees: In a Chapter 7 bankruptcy, a trustee is appointed to oversee your case. The trustee’s role includes reviewing your financial documents and, in some cases, liquidating non-exempt assets to repay creditors. The trustee’s fees are typically deducted from any assets they recover, so you won’t need to pay these fees directly out of pocket.

Keep in mind that bankruptcy costs can vary depending on your specific circumstances and location. To get a more accurate estimate of the total cost to file Chapter 7 bankruptcy in Colorado, it’s advisable to consult with a bankruptcy attorney who can provide you with a detailed breakdown of the expenses and help you understand your options for managing these costs effectively.

Cost to File Chapter 11 Bankruptcy in Colorado

The cost to file Chapter 11 bankruptcy in Colorado can be substantial, and it varies depending on the complexity of the case, the size of the business or individual’s debts, and legal fees. Chapter 11 bankruptcy is primarily designed for businesses, but individuals with significant debt may also file under this chapter. Here’s a breakdown of the typical expenses associated with filing Chapter 11 bankruptcy in Colorado:

1. Filing Fee: The initial filing fee for a Chapter 11 bankruptcy case in Colorado can be significant. The fee can range from $1,820 to $4,950 depending on the amount of the debtor’s total debt. This fee may change over time due to adjustments for inflation, so it’s essential to check the most current fee schedule with the bankruptcy court.
2. U.S. Trustee’s Quarterly Fees: In Chapter 11 cases, businesses and individuals must pay quarterly fees to the U.S. Trustee’s office based on their gross income. These fees are calculated according to a specific formula outlined in the bankruptcy code and can vary widely. The U.S. Trustee will determine the exact amount of quarterly fees owed based on your financial statements.
3. Attorney Fees: Chapter 11 bankruptcy cases are complex and often require the assistance of experienced bankruptcy attorneys. Attorney fees for Chapter 11 cases can vary significantly depending on the complexity of the case, the size of the business, and the attorney’s hourly rates. Due to the intricacies involved, attorney fees can be substantial and can range from several thousand dollars to tens of thousands of dollars or more.
4. Miscellaneous Costs: There may be additional expenses associated with your Chapter 11 bankruptcy, such as fees for obtaining appraisals, financial advisors, accountants, and other professionals who may be necessary to support your case. These costs can add up significantly.
5. Retention of Professionals: In many Chapter 11 cases, debtors may need to retain various professionals, such as financial advisors, accountants, and attorneys, to assist with the bankruptcy process. The fees for these professionals can vary widely based on the services they provide and their expertise.

Due to the significant expenses involved in Chapter 11 cases, it’s crucial to work closely with experienced bankruptcy professionals who can help you navigate the process efficiently and develop a viable reorganization plan. These professionals can provide a more accurate estimate of the costs specific to your case and help you make informed decisions regarding your financial future.

Cost to File Chapter 13 Bankruptcy in Colorado

The cost to file Chapter 13 bankruptcy in Colorado includes various fees and expenses. Chapter 13 bankruptcy is often referred to as a “wage earner’s plan” because it allows individuals with regular income to reorganize their debts and create a repayment plan. Here’s a breakdown of the typical expenses associated with filing Chapter 13 bankruptcy in Colorado:

1. Filing Fee: The primary expense when filing for Chapter 13 bankruptcy is the filing fee paid to the bankruptcy court. Te filing fee for a Chapter 13 bankruptcy case in Colorado is $345. This fee may change over time due to adjustments for inflation, so it’s essential to check the most current fee schedule with the bankruptcy court or your attorney.
2. Attorney Fees: It is highly advisable to hire an experienced bankruptcy attorney when filing for Chapter 13 bankruptcy. Attorney fees for Chapter 13 cases can vary depending on your location and the complexity of your situation. On average, attorney fees for a Chapter 13 bankruptcy in Colorado can range from $2,680 to $4,620 or more. The attorney’s expertise is invaluable in navigating the complex legal process, crafting a feasible repayment plan, and representing your interests.
3. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and debtor education courses. These courses typically cost between $25 to $58 each and may vary depending on the service provider you choose. Ensure that you select approved course providers to comply with bankruptcy regulations.
4. Trustee’s Fees: In a Chapter 13 bankruptcy, a trustee is appointed to administer your case and oversee your repayment plan. The trustee’s fees are generally included as part of your repayment plan, and you won’t need to pay them directly out of pocket.
5. Miscellaneous Costs: You may encounter additional expenses associated with your Chapter 13 bankruptcy, such as fees for obtaining credit reports, notary fees, postage, and document copying expenses. These costs are typically minor compared to the filing fee and attorney fees.

It’s important to note that Chapter 13 bankruptcy involves creating a court-approved repayment plan to pay off a portion of your debts over three to five years. As a result, you will make regular monthly payments to the bankruptcy trustee, who will then distribute the funds to your creditors as per the approved plan.

If you cannot afford to pay the filing fee upfront, you may have the option to request a fee waiver or pay the fee in installments. Qualifying for a fee waiver is based on your income and financial circumstances.

Reliable Bankruptcy Attorneys in Colorado

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

Colorado Bankruptcy Law Group, LLC
2373 Central Park Blvd Unit 100, Denver, CO 80238, United States

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

Law Office of David M. Serafin
501 S Cherry St Ste 1100, Denver, CO 80246, United States

The Law Office of Clark Daniel Dray
6343 W 120th Ave, Broomfield, CO 80020, United States

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

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