The despair brought upon by bankruptcy can seem overwhelming. Despite the many reforms to bankruptcy laws in Colorado, the most efficient means to handle bankruptcy may be Chapter 7. The financial stress is cumbersome. Bankruptcy is a feasible option. Moreover, working with professional bankruptcy attorneys at Ores Law alleviates the stress of proper filing. Typical filing period for Chapter 7 Bankruptcy, with the help of a lawyer, is 90-120 days.

Chapter 7 Bankruptcy is a liquidation of assets in order to pay back the debts to creditors. It is not a form of repayment. Debtors that file Chapter 7 Bankruptcy are typically new business owners and honest individuals that need a fresh start. In opposition to Chapter 13 Bankruptcy, Chapter 7 Bankruptcy assigns a bankruptcy trustee to gather all of the debtor’s nonexempt assets, sells the assets, and then moves forward to pay back the creditors holding a claim against the debtor. The debtor may keep all exempt assets.

Who Qualifies For Chapter 7 Bankruptcy?

  • Individuals
  • Partnership
  • Corporation
  • Other Business Entity

These listed here are subject to filing for Chapter 7 Bankruptcy assuming one passes the means test no matter the amount of the debt; solvent or insolvent status of the debtor is irrelevant.

A Few Factors That Can Restrict Filing Chapter 7

One may not file for Chapter 7 if he or she has failed to appear in court for a prior bankruptcy claim by creditors in the preceding 180 days.

An individual may not file for Chapter 7 unless he or she has received individual or group credit counseling by an approved agency in the preceding 180 days. The exception to this rule is if the court determines there were no viable agencies in the area.

There are many more factors that contribute to a Chapter 7 Bankruptcy case, but it is a viable option for many debtors. Please schedule a free consultation with an Ores Law professional bankruptcy attorney in Loveland, CO to discuss the best options for you.