Denver Chapter 7 and Chapter 13 Attorneys
Are there any Immediate Advantages to Filing for Bankruptcy?
Simply put, bankruptcy allows people to recover their financial footing when they are no longer able to pay their mortgage, pay off credit cards, or pay down medical bills. Once debts begin to mount and bills go past due, eventually creditors and collections agencies start calling and sending stern warning letters. If you are unable to make your monthly mortgage, eventually your bank may start foreclosure proceedings on your home. Filing for bankruptcy, however, places an automatic stay on creditors, requiring them to halt all collections of foreclosure actions against you. Practically speaking, this means collection agencies and creditors have to stop calling you. If you are facing foreclosure, your bank must halt its foreclosure proceedings against you.
If you are uncertain whether bankruptcy is right for you, contact Denver bankruptcy attorneys at Mile High Bankruptcy, PC, today to schedule a free consultation to discuss your case.
Pros and Cons of Bankruptcy
Bankruptcy allows You to Regain Control of Your Finances
Regardless of whether you file for Chapter 7 or Chapter 13, bankruptcy is perhaps the most effective way for people struggling with mounting debt to gain control of their finances again. If you qualify for Chapter 7 bankruptcy, unsecured debt on credit cards, loans, or medical bills will be discharged. In some cases, the court may sell certain kinds of property to pay back a portion or all of what you owe creditors. However, there are several powerful and generous exemptions that can be claimed to protect much of what you own. Once your unsecured debt is discharged, you don't have to worry about trying to make monthly minimum payments, so you can more easily pay your car loan, and pay your rent or mortgage.
I don't want to lose My Home - Will Filing Help Me?
In short, whether you can keep your home will depend on whether you can continue making your monthly mortgage payments. If you file for Chapter 7 bankruptcy, your unsecured debt -- debts on credit cards, medical bills, certain kinds of loans -- will be wiped out. As such, you should have enough disposable monthly income after filing for Chapter 7 to pay your mortgage. Additionally, there is a household exemption you can claim to protect the equity in your home.
Under the terms of Chapter 13, your debt is reorganized according to a repayment plan created by you and approved by the court. Your repayment plan can include past due mortgage payments but it cannot restructure or modify your mortgage loan. However, since you are restructuring your debt into a more affordable monthly payment, you should be able to stay current on your mortgage, thereby avoiding foreclosure on your home.
Contact Denver Chapter 7 and Chapter 13 Bankruptcy Attorneys
If you are in financial trouble due to credit card debt, unpaid medical bills, or a subprime mortgage, bankruptcy can help you regain your financial footing. To learn how we can help you, contact Denver, Colorado bankruptcy lawyers at Mile High Bankruptcy, PC, today to schedule a free consultation.