Foreclosure is a process. If you are available to make all of your back payments while staying financially solvent you should do so. If you can get your mortgage payment current without further assistance the foreclosure process will be immediately halt as soon as payments are current and any applicable late fee is paid.
Denver Bankruptcy FAQ:
Frequently Asked Questions
Denver & Highlands Ranch Bankruptcy Information
In general, couples filing for bankruptcy jointly are allowed twice as much exempt property value, which makes sense since it is the property of two individuals instead of one. Some pieces of property, such as a home may have a specific allowable exemption value regardless of whether it is a couple filing or an individual.
No. Although most Colorado bankruptcy attorneys will only help individuals who truly qualify for bankruptcy, if the filer does not follow through with all steps of a bankruptcy the case will be dismissed. You as the filer need to be honest with your attorney and the court and complete all steps honestly and completely.
When filers work effectively with their attorney, bankruptcy is almost always confirmed without hesitation.
The term exempt property does not exist in a Chapter 13 filing but all property is protected during a Chapter 13 bankruptcy. Since payments are restructured, as long as remaining payments are made the property will be safe and will remain in the possession of the bankruptcy filer.
No. Like anything, you will usually pay for what you get. Some bankruptcy law firms offer full service experiences which will make sure you are comfortable and in control of your bankruptcy from day 1 until discharge, other firms just file forms and let you figure the rest out for yourself.
Choosing the firm that will offer exactly what you need can be the difference between a stressful bankruptcy which is dismissed and one which is manageable and successful.
All items that have dischargeable debts will be the filers property free and clear following discharge and cannot be seized to repay debts. Property such as a home that cannot have its associate debt discharged can be foreclosed upon following discharge if the filer does not stay current with payments but if the home is classified as exempt during the bankruptcy it will not repossessed during the bankruptcy process.
Almost all good law firms will offer a free consultation to evaluate your situation and let you know if you qualify for bankruptcy. During this free consultation you can ask questions, learn about the firm, and see if it is right for you.
To make property exempt, the bankruptcy filer must make sure to claim the desired items as exempt in the filing forms and properly identify each item and its value. There are limits to exemptions and allowable exemptions are specific to item types that can be considered day to day necessities such as clothing, transportation, housing, trade tools, pension, earnings, and household items.
In most cases, low cost attorney filing assistance only covers the filing of forms and will not include an attorney appearance in court or having someone available to answer any questions you may have during the filing process. What each bankruptcy attorney offers needs to be evaluated prior to hiring any lawyer.
No, not all Denver-area bankruptcy law firms offer the same services.
If you are looking for specific service such as being able to work with the same lawyer each time you call in or to have a qualified lawyer available to consult with you each time you have a question, you must choose the firm you work with carefully. Each firm has their own policies and offer a different set of services.
An exempt item is one that cannot be repossessed or sold to repay a bankruptcy filers debts during a liquidation. Exempt items will remain in the possession of the filer during and following a bankruptcy.
If confirmed the plan becomes active and you need to follow it to completion. Following completion of the bankruptcy plan all dischargeable debts will be discharged.
Since bankruptcy is a federal program, most bankruptcy crimes cases are tried in federal court . Bankruptcy fraud is considered a serious white color crime, being that the individual is trying to defraud both creditors and a federal court, and bankruptcy crimes cases are usually prosecuted to the fullest extent of the law.
Doing everything right the first time is the best way to make sure that no one suspects you of a bankruptcy crime. In general, if you were to use a bankruptcy lawyer the chance that a significant error would be made would become very low and your lawyer could help you avoid legal missteps.
A foreclosure can have lasting effects on your ability to get loans in the future and can end up causing other serious financial problems. When bankruptcies are not appropriate for your situation, the option of negotiating a short sale with your lender will prevent significant detriment to your credit report and may very well work in your creditors best interest. It is an option you can explore on your own or by contacting a lawyer or credit counselor.
In most cases, at least once. In the “341 meeting” (a meeting of creditors), a bankruptcy filer will be briefly questioned on the specifics of their filing. There is also an opportunity for creditors to challenge a bankruptcy filing and ask questions at this meeting. Generally, most creditors will not show to your 341 meeting but it is their right to do so if they choose.
In general, the answer is no. Usually, if there are errors on a bankruptcy filing the case is dismissed when the errors are found, and as the case with all dismissals, the dismissal can be appealed. The charge of bankruptcy crimes is usually only made when there is significant evidence that a person fraudulently filed for bankruptcy for financial gain, such as hiding assets or defrauding creditors.
If I do not qualify for bankruptcy are there any options available to save my home from foreclosure?
Negotiation with your lender can be an option regardless of a person’s ability to file bankruptcy. It can be difficult to negotiate terms with your lender after you are already facing foreclosure, but many banks and lending institutions would prefer to keep borrowers in their home and paying their mortgage even if it required accepting less each month. The process of debt negotiation can be difficult but a qualified lawyer can help you negotiate your mortgage payments down to a manageable figure.
Following the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005, debtors need to undergo credit counseling prior to being discharged from bankruptcy. Credit counseling can be helpful in understanding how to manage interest payments as well as budget planning and the prevention of future financial dilemmas.
Maximum allowable prison sentences and fines vary by on state and type of crime committed, but those accused of bankruptcy crimes could face up to $250,000 in fines and several years of jail time. In addition to having to pay fines and serve jail time, if you are found guilty of bankruptcy crimes you could have your discharge repealed if you have already received one or you could have your case dismissed if you have not yet received discharge.
No. Bankruptcy can put a stay on foreclosures that have not yet preceded to the repossession and sale of a home but cannot turn back the hands of time. Bankruptcy can be started as soon as it becomes apparent an individual cannot possibly repay all debts they owe, so there is no reason to wait till after your home has been repossessed to file.
Yes. Although your mortgage can not be discharged and the terms of your mortgage will not be effected by bankruptcy proceedings, bankruptcy can help resolve past due mortgage payments, fees, and halt or prevent foreclosure proceedings.
In law, there are no certifications and official specializations. Instead, you should look for experience in the form of how many bankruptcy cases a lawyer has tried.
Bankruptcy is a specific type of law and lawyers who have tried the most cases tend to know more about bankruptcy filings and filing options than lawyers who practice general law and only try one or two bankruptcy cases a year.
The length of each bankruptcy case is determined by a multitude of factors, the largest of which is the type of bankruptcy being filed.
Chapter 7 bankruptcies result in a fairly quick discharge and can be completed and often yield discharge in about 4 months following the initial forms being filed.
Chapter 13 bankruptcies can take over 5 years from initial forms being filed to the filer receiving discharge, but the bankruptcy filer does enjoy the protections of bankruptcy from the first day they file until their debts are discharged.
While filling out the first bankruptcy forms, regardless of type of bankruptcy, you will need to know your income, what you own, your debts, your monthly payment, and your ability to repay debts. These are things you should try to figure out before filling out forms, but if you are unable to do so the forms can help organize this information through identification and evaluation of each key element of a bankruptcy filing.
An individual or couple can either visit their local bankruptcy court’s Clerk’s Office to pick up the forms, find and print the forms online from the court’s website, or visit a lawyer to get started. If you are planning to file on your own, after filling out forms you will either drop off or mail them to the local bankruptcy court. If you are using a bankruptcy lawyer, they will usually file the forms for you.
Bankruptcy is a legal process and submitting false documentation, purposely omitting pertinent information, and committing outright bankruptcy fraud can be considered criminal acts and can be prosecuted like any other crime.
As with all bankruptcies, Chapter 7 bankruptcies are a matter of public record and if people search they can find the names of all those who have filed. In general, the names of those who file are not published in the newspaper and friends and family do not find out without searching public records.
Husbands and wives should file jointly when the majority of dischargeable debts are in the names of both individuals. If one spouse files bankruptcy and the other does not, creditors may attempt to collect on debts from the spouse who did not file Chapter 7 bankruptcy.
Couples can file jointly but the benefits of joint filing vary from case to case. To determine whether or not joint filing is correct for a husband and wife pair, it is usually necessary to get legal advice from an attorney or evaluate the benefits and disadvantages of both options prior to making a filing decision.
