If you’re considering filing bankruptcy in Denver, 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 complex legal process that provides individuals and businesses with a way to alleviate overwhelming debt and get a fresh financial start. In Denver, Colorado, as in the rest of the United States, there are specific qualifications and eligibility requirements that individuals must meet to file for bankruptcy. These qualifications can vary depending on the type of bankruptcy you wish to file, either Chapter 7 or Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy because it involves the sale of non-exempt assets to pay off creditors, followed by the discharge of eligible remaining debts. To qualify for Chapter 7 bankruptcy in Denver, Colorado, you must meet several criteria:

1. Means Test: The means test is a crucial determinant of Chapter 7 eligibility. It evaluates your income and expenses to determine whether you have enough disposable income to repay your debts. If your income is below the median income for your household size in Colorado, you automatically pass the means test. If your income exceeds this threshold, you may still qualify if your disposable income after allowable expenses is below a certain limit.
2. Previous Bankruptcy Discharge: If you have received a Chapter 7 discharge in the past eight years, you may not be eligible for another Chapter 7 discharge. However, you may still be eligible for Chapter 13 bankruptcy.
3. Credit Counseling: Before filing for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency within 180 days before filing.
4. Financial Management Course: After filing for Chapter 7 bankruptcy, you are required to complete a financial management course to receive a discharge.
5. Exempt Property: It’s important to understand Colorado’s exemptions. You can keep certain property exempt from liquidation, such as a primary residence, some personal property, retirement accounts, and more. Understanding these exemptions is crucial to preserving your assets.
6. Good Faith Filing: You must file for Chapter 7 bankruptcy in good faith and not be attempting to abuse the system or commit fraud.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as “reorganization” bankruptcy, allows you to create a repayment plan to pay off your debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Denver, Colorado, you must meet the following criteria:

1. Regular Income: You must have a regular source of income that allows you to make monthly payments under the proposed repayment plan.
2. Secured and Unsecured Debt Limits: There are limits on the amount of secured and unsecured debt you can have to file for Chapter 13 bankruptcy. These limits are adjusted periodically to account for inflation.
3. Priority Debts: Your repayment plan must include provisions for paying off priority debts, such as tax debts and child support arrears.
4. Completion of Credit Counseling: Like in Chapter 7 bankruptcy, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
5. Good Faith Filing: Similar to Chapter 7, you must file for Chapter 13 bankruptcy in good faith and not be attempting to abuse the system or commit fraud.

It’s important to note that bankruptcy laws and regulations may change over time, so it’s advisable to consult with a qualified bankruptcy attorney in Denver, Colorado, or a legal professional who is well-versed in bankruptcy law to ensure you meet the current eligibility requirements and to guide you through the bankruptcy process. Additionally, keep in mind that filing for bankruptcy can have significant and long-lasting financial consequences, so it’s a decision that should not be taken lightly. Before proceeding, it’s essential to fully understand the implications and alternatives available to you.

RESOURCES:

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

Filing for bankruptcy in Denver, Colorado, is a complex legal process with various rules and requirements. While it is not mandatory to hire an attorney to file for bankruptcy, having legal representation can be highly beneficial and is often recommended.

Pros of Hiring a Bankruptcy Attorney in Denver, CO:

1. Expertise and Experience: Bankruptcy attorneys are well-versed in federal and Colorado bankruptcy laws, as well as local court rules and procedures. They have experience handling various bankruptcy cases, which means they can provide valuable guidance tailored to your specific situation.
2. Legal Advice and Strategy: An attorney can assess your financial situation and help you determine the most suitable type of bankruptcy (Chapter 7 or Chapter 13) based on your goals and circumstances. They can also help you develop a repayment plan if you opt for Chapter 13.
3. Paperwork and Documentation: Filing for bankruptcy involves extensive paperwork and documentation. An attorney can ensure that all forms are completed accurately and submitted on time, reducing the risk of errors that could lead to case dismissal or complications.
4. Protection from Creditor Harassment: Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from pursuing collection actions. An attorney can communicate with creditors on your behalf and ensure they comply with the stay.
5. Asset Protection: Bankruptcy attorneys can help you navigate exemptions and protect your assets from liquidation to the fullest extent allowed by law. They understand the nuances of Colorado’s exemption laws and can advise you on safeguarding your property.
6. Court Representation: If your case requires court appearances or hearings, having an attorney by your side can provide peace of mind. They can represent you effectively and advocate for your best interests.
7. Debt Discharge: Bankruptcy attorneys can maximize the chances of obtaining a debt discharge, ensuring that you benefit fully from the bankruptcy process.

Cons of Filing for Bankruptcy Without an Attorney:

1. Complexity: Bankruptcy laws are intricate, and navigating them can be challenging, especially for individuals without legal training. Filing without an attorney may lead to mistakes, delays, or even case dismissal.
2. Risk of Asset Loss: Without professional guidance, you may inadvertently lose valuable assets that could have been protected with the help of an attorney who understands exemption laws.
3. Incomplete Information: Filing without an attorney may result in missing out on potential benefits or opportunities for debt relief that you may not be aware of.
4. Limited Access to Legal Resources: Attorneys have access to legal research tools, resources, and databases that can be essential in building a strong bankruptcy case. Individuals filing pro se (without an attorney) may lack these resources.
5. Courtroom Representation: If you’re uncomfortable representing yourself in court or dealing with legal proceedings, you may find the process overwhelming and intimidating.
6. Creditors’ Actions: Creditors may take advantage of individuals filing pro se, potentially challenging the bankruptcy and pursuing collection actions.
7. Financial Consequences: Mistakes in your bankruptcy filing can lead to serious financial consequences and may impact your ability to discharge debts or refile for bankruptcy.

While it is possible to file for bankruptcy without an attorney in Denver, Colorado, doing so comes with significant risks and challenges. Bankruptcy law is intricate, and even seemingly straightforward cases can become complicated. Hiring a bankruptcy attorney can provide the expertise, guidance, and protection you need to navigate the process successfully, maximize debt relief, and safeguard your assets. Considering the long-term financial implications of bankruptcy, investing in legal representation is often a wise decision to ensure your best interests are served during this challenging time.

Cost to File Chapter 7 Bankruptcy in Denver, CO

The cost to file for Chapter 7 bankruptcy in Denver, Colorado, consists of several components, including court filing fees, mandatory credit counseling fees, and attorney fees if you choose to hire a bankruptcy attorney. Here’s a breakdown of these costs:

1. Court Filing Fees: The primary expense when filing for Chapter 7 bankruptcy is the court filing fee, which is set by the United States Bankruptcy Court. Please note that filing fees can change over time, so it’s essential to check the most current fee schedule on the official website of the U.S. Bankruptcy Court for the District of Colorado or consult with a bankruptcy attorney for up-to-date information.
2. Credit Counseling Fees: Before you can file for Chapter 7 bankruptcy, you are required to complete credit counseling through an approved credit counseling agency. This typically involves a fee, which can vary depending on the agency you choose. The cost of credit counseling can range from $29 to $65 on average. Some agencies may offer reduced fees or fee waivers for individuals with low income.
3. Attorney Fees: While it’s not mandatory to hire a bankruptcy attorney to file for Chapter 7 bankruptcy, many individuals choose to do so because of the complexities involved in the process. Attorney fees for Chapter 7 bankruptcy can vary widely based on factors such as the complexity of your case, the attorney’s experience, and your location in Denver, Colorado. On average, attorney fees for Chapter 7 bankruptcy may range from $1,195 to $2,680 or more. It’s important to discuss fees and payment arrangements with your attorney during the initial consultation.
4. Credit Report and Miscellaneous Costs: You may need to obtain a copy of your credit report to ensure that you list all your creditors accurately in your bankruptcy petition. The cost of obtaining your credit report can vary but is typically around $12 to $17. Additionally, there may be other miscellaneous costs associated with your bankruptcy, such as postage, notary fees, or transportation expenses related to court appearances.

Before proceeding with a Chapter 7 bankruptcy filing in Denver, Colorado, it’s advisable to consult with a qualified bankruptcy attorney or seek guidance from a legal aid organization to understand the full scope of costs, your eligibility for fee waivers, and the potential benefits of legal representation. Bankruptcy is a significant financial decision, and understanding all associated costs and requirements is essential for a successful and smooth bankruptcy process.

Cost to File Chapter 11 Bankruptcy in Denver, CO

Filing for Chapter 11 bankruptcy in Denver, Colorado, is a complex and costly process primarily designed for businesses, although it can also be used by individuals with high debts exceeding the limits of Chapter 13. The cost of filing for Chapter 11 bankruptcy varies significantly depending on the size and complexity of the case. Here’s a breakdown of the main expenses associated with filing Chapter 11 bankruptcy:

1. Attorney Fees: The largest portion of the cost for a Chapter 11 bankruptcy is typically the fees charged by your bankruptcy attorney. Chapter 11 cases are intricate and involve complex negotiations, reorganizations, and ongoing court oversight. Attorney fees can vary widely based on factors such as the complexity of your financial situation, the size and nature of your business, and the attorney’s experience. Attorney fees for Chapter 11 bankruptcy can range from tens of thousands to hundreds of thousands of dollars or even more.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in Colorado is $1,928. However, filing fees are subject to change and may vary depending on court updates and your specific circumstances.
3. United States Trustee Fees: In addition to the filing fee, businesses in Chapter 11 bankruptcy may be required to pay quarterly fees to the United States Trustee Program. These fees are based on a percentage of the company’s disbursements and can add up significantly.
4. Professional Fees: In many Chapter 11 cases, it is necessary to hire professionals such as financial advisors, accountants, and appraisers to assist with the restructuring process. These professionals charge fees for their services, which can be substantial.
5. Court Costs and Miscellaneous Expenses: Throughout the Chapter 11 process, there may be various court-related costs, including the cost of motions, court hearings, and other administrative expenses. Additionally, there might be miscellaneous expenses associated with the bankruptcy proceedings.
6. Creditors’ Committee Expenses: In some cases, a creditors’ committee may be formed to represent the interests of creditors. The costs of the creditors’ committee, including legal fees, are typically borne by the debtor’s estate.
7. Plan Confirmation Costs: Successfully confirming a Chapter 11 reorganization plan often involves additional expenses, including legal fees related to plan drafting and negotiations with creditors.

Given the significant costs and complexities associated with Chapter 11 bankruptcy, many businesses consider it a last resort. Before proceeding, it’s crucial to explore alternative solutions, such as negotiations with creditors or out-of-court restructuring, to address financial difficulties. Bankruptcy should be approached with careful consideration, and a thorough understanding of the potential costs and benefits is essential for informed decision-making.

Cost to File Chapter 13 Bankruptcy in Denver, CO

The cost to file for Chapter 13 bankruptcy in Denver, Colorado, involves several components, including court filing fees, mandatory credit counseling fees, and attorney fees if you choose to hire legal representation. Here’s a breakdown of these costs:

1. Court Filing Fees: The primary expense when filing for Chapter 13 bankruptcy is the court filing fee, which is set by the United States Bankruptcy Court. Please note that filing fees can change over time, so it’s essential to check the most current fee schedule on the official website of the U.S. Bankruptcy Court for the District of Colorado or consult with a bankruptcy attorney for up-to-date information.
2. Credit Counseling Fees: Before filing for Chapter 13 bankruptcy, you are required to complete credit counseling through an approved credit counseling agency. This typically involves a fee, which can vary depending on the agency you choose. On average, the cost of credit counseling can range from $28 to $64. Some agencies may offer reduced fees or fee waivers for individuals with low income.
3. Attorney Fees: While it’s not mandatory to hire an attorney to file for Chapter 13 bankruptcy, many individuals choose to do so because of the complexities involved in the process. Attorney fees for Chapter 13 bankruptcy can vary depending on factors such as the complexity of your case, the attorney’s experience, and your location in Denver, Colorado. On average, attorney fees for Chapter 13 bankruptcy may range from $2,430 to $4,821 or more. It’s crucial to discuss fees and payment arrangements with your attorney during the initial consultation.
4. Chapter 13 Trustee Fees: In a Chapter 13 bankruptcy, a trustee is appointed to oversee the repayment plan and disburse payments to creditors. The trustee’s fee is typically a percentage of the payments made through the plan. This fee is included in your monthly plan payments and is not an upfront cost.
5. Miscellaneous Costs: There may be other miscellaneous costs associated with your Chapter 13 bankruptcy, such as postage, notary fees, or transportation expenses related to court appearances.

It’s important to note that if you are unable to afford the court filing fee or credit counseling fees due to financial hardship, you may be eligible for fee waivers or installment payment plans. These options can help make the process more accessible to individuals facing financial difficulties.

Reliable Bankruptcy Attorneys in Denver, CO

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

Rocky Mountain Bankruptcy
2590 Welton St Ste 200, Denver, CO 80205, United States

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

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

Howard S. Goodman Bankruptcy Attorney
7535 E Hampden Ave #501, Denver, CO 80231, United States

Law Offices of Kevin S. Neiman, pc
999 18th Street 1230 S, Denver, CO 80202, United States

Denver, CO Zip Codes We Proudly Serve:

80012, 80014, 80110, 80111, 80123, 80202, 80203

---