Nobody intends to get behind on mortgage payments, overextend themselves on their credit cards, or blow through savings irresponsibly.  But sometimes, live throws you not one curveball, but many of them, and the cumulative effect can wear down and deplete even the best among us.  Some people react with shame.  Others try to hide in plain sight, refusing to acknowledge their debts.  But sooner or later, it catches up with many of us, and we have little choice but to file for bankruptcy.

With the economy being so turbulent in recent years, the stigma of filing for bankruptcy no longer applies.  Many good and hard working people have been wiped out through no fault of their own.  For them, starting over and getting a fresh start can put them back on a happy and productive path, free from guilt, worry and the burden of crushing bills.

For many people, the preferred way to go is to file for Chapter 7 bankruptcy.  It is the most common form of bankruptcy and is intended to bring total debt relief for individuals.  In a Chapter 7 bankruptcy, a trustee will liquidate your property and use the resulting funds to pay off creditors.  After this takes place, your debts are wiped clean.  In Chapter 7, some property is considered exempt, and you’ll get to keep it.  It’s best to check with an attorney,though, because exemptions will vary from state to state.

For other people, Chapter 13 bankruptcy is the preferred way to get a fresh start.  It is different from Chapter 7 in that it allows you to pay down your debts over a three to five-year plan through a bankruptcy trustee.  Unlike Chapter 7, you get to keep all of your property in a Chapter 13 filing.  A trustee will prioritize your debts placing taxes, alimony and child support at the top of the list, which will need to be paid in full.  To qualify, you will need to fall within the unsecured and secured debt limits that apply to Chapter 13 as well.

Faletti Law Office focuses on family law, tax law, bankruptcy and estate planning for clients in Bloomfield and the surrounding Colorado communities of Arvada, Westminster, Northglenn, Commerce City, Erie, Brighton, Lafayette, Longmont, Firestone, Thornton, Adams County, Jefferson County and beyond.