Why Choose a Denver Bankruptcy Attorney?

Filing for bankruptcy is a significant decision that requires personalized guidance from a skilled attorney familiar with Colorado’s bankruptcy laws. A local Denver bankruptcy attorney offers several advantages:

• Unmatched Local Expertise: Attorney Martin Long is a former Chapter 7 Trustee for the U. S. Bankruptcy Court. Our attorneys at Long & Long understand the nuances of Colorado bankruptcy courts, including the U.S. Bankruptcy Court for the District of Colorado, ensuring your case is handled efficiently.
• Personalized Service: Unlike large firms, we provide one-on-one attention, ensuring you feel supported throughout the process. Our Centennial office, conveniently located next to I-25 and Arapahoe Road, offers easy access throughout the Front Range, flexible hours and free parking for easy access.
• Comprehensive Support: From initial consultations to post-bankruptcy credit repair advice, we help you navigate every step, including the mandatory pre- and post-bankruptcy counseling courses.

Understanding Chapter 7 and Chapter 13 Bankruptcy

Bankruptcy laws offer different options depending on your financial situation. Here’s a breakdown of the two most common types for individuals:

Chapter 7 Bankruptcy: A Fresh Start

Chapter 7, often called “liquidation bankruptcy,” is ideal for individuals with limited income who need to discharge unsecured debts like credit card balances or medical bills. To qualify, you must pass the “means test,” which compares your income to Colorado’s median income for your household size.

• Benefits: Discharges most unsecured debts, stops wage garnishments, and halts creditor harassment through an automatic stay.
• Process: Involves disclosing all income, debts, and assets. Our attorneys at Long & Long help identify exempt assets (like your home or car) to protect them from liquidation.
• Timeline: Typically takes 4-6 months, with a “Meeting of Creditors” where our former U.S. Bankruptcy Court Trustee, Martin E. Long, guides you through questioning under oath.

Chapter 13 Bankruptcy: Reorganization for Stability

Chapter 13, known as “reorganization bankruptcy,” is suitable for those with regular income who want to keep non-exempt assets, like a home facing foreclosure. It involves a 3-5 year repayment plan tailored to your budget.

• Benefits: Prevents foreclosure, allows you to “strip off” second mortgages, and restructures debts into manageable payments.
• Process: You submit payments to a trustee, who distributes them to creditors based on priority. Our attorneys ensure your repayment plan is feasible and compliant.
• Who Qualifies: Ideal for those who don’t pass the Chapter 7 means test or have non-exempt assets or non-dischargeable debts like taxes or child support.

Why Long & Long Stands Out

At Long & Long, we’re committed to making bankruptcy accessible and stress-free. Here’s why Denver residents trust us:

• Experience: Attorney Martin E. Long, a former U.S. Bankruptcy Court Trustee, has conducted thousands of bankruptcy cases, offering unmatched insight into the process.
• Affordability: We offer free consultations, affordable fees (Chapter 7: $1,700-$3,000+; Chapter 13: $4,500+), and flexible payment plans to ease financial strain.
• Client-Centered Approach: We prioritize your peace of mind, providing 24/7 access to our team and clear explanations of each step. Our clients praise our compassion and professionalism, with reviews highlighting our ability to navigate complex cases.
• Convenient Location: Our Centennial office serves metro Denver, Aurora, Littleton, Englewood, Highlands Ranch, Castle Rock, Colorado Springs and beyond, with virtual consultations available for those outside the metro area.

Common Reasons to File for Bankruptcy in Denver

Life’s challenges can lead to overwhelming debt. Common reasons Denver residents file for bankruptcy include:

• Medical Bills: Unexpected healthcare costs are a leading cause of bankruptcy, even for insured individuals.
• Job Loss or Income Disruption: Unemployment or reduced income can make it impossible to keep up with debt payments.
• Credit Card Debt: High-interest credit card balances can spiral out of control during financial hardship.
• Foreclosure or Wage Garnishment: Bankruptcy’s automatic stay can halt foreclosure and garnishment, giving you time to regroup.

What to Expect When Working with Long & Long

1. Free Consultation: Schedule a no-obligation consultation by calling (303) 832-2655 or visiting www.denverbankruptcylawyer.net. Bring details of your debts, income, and expenses for a thorough evaluation.
2. Document Preparation: We’ll provide a Chapter 7 Timeline, intake sheet, and fee agreement via DocuSign for easy signing. Complete the intake sheet, and we’ll review it promptly.
3. Counseling Courses: Complete the required pre- and post-bankruptcy counseling courses (about 1.5 hours each, at a nominal cost) to meet court requirements.
4. Filing and Representation: We handle all paperwork and strategies and represent you at the Meeting of Creditors, ensuring a smooth process.
5. Post-Bankruptcy Support: We offer guidance on rebuilding your credit, helping you achieve a 700+ credit score within 24 months.

Debts That Cannot Be Discharged

Not all debts are dischargeable in bankruptcy. These include:

• Child support and alimony
• Most student loans
• Certain taxes
• Criminal fines or restitution

Our attorneys will review your debts to determine which can be discharged and advise on the best course of action.

Take the First Step Toward Financial Freedom

If you’re searching for a “Denver bankruptcy attorney near me,” Long & Long is here to help. With decades of experience, a client-first approach, and a commitment to affordability, we’ll guide you through Chapter 7 or Chapter 13 bankruptcy to secure a brighter financial future. Don’t let debt control your life—call (303) 832-2655 or visit www.denverbankruptcylawyer.net to schedule your free consultation today. Also check out our posts at: Here’s your clickable website link:

👉 Getting Credit Cards After Filing for Bankruptcy

👉 What is Bankruptcy? A Complete Guide to Understanding Your Options

Disclaimer: The information provided is for general purposes only and does not constitute legal advice.

What Does Bankruptcy Do?

Bankruptcy is a legal process governed by federal law that helps individuals and businesses manage or eliminate debts they cannot pay. It provides a fresh start by either discharging (eliminating) certain debts or restructuring them into a manageable repayment plan. When you file for bankruptcy, an automatic stay immediately stops most creditor actions, such as collection calls, lawsuits, wage garnishments, and foreclosures, giving you time to address your financial situation.

Types of Bankruptcy for Individuals

Before diving into the process, it’s important to know the two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Each works differently and suits different financial situations.

• Chapter 7 (Liquidation): This eliminates most unsecured debts (e.g., credit cards, medical bills) by liquidating non-exempt assets to pay creditors. It’s ideal for those with low income and few assets.
• Chapter 13 (Repayment Plan): This allows you to keep your property while repaying debts over 3–5 years. It’s suited for those with regular income who want to protect assets like a home or car.

How Does Bankruptcy Work? A Step-by-Step Guide

The bankruptcy process varies slightly depending on whether you file Chapter 7 or Chapter 13, but here’s a general overview of the key steps:

Step 1: Evaluate Your Financial Situation

Start by assessing your debts, income, expenses, and assets. Consulting a bankruptcy attorney is crucial at this stage. They’ll help determine if bankruptcy is the best option or if alternatives like debt settlement or credit counseling might work better. A qualified attorney can also recommend whether Chapter 7 or Chapter 13 is right for you.  

Step 2: Complete Credit Counseling

Before filing, you must complete a credit counseling course from an approved agency. This course, which takes about 1–2 hours, reviews your financial situation and explores debt relief options. You’ll receive a certificate of completion, which must be filed with your bankruptcy petition.

Step 3: File the Bankruptcy Petition

Filing begins with submitting a bankruptcy petition to the federal bankruptcy court in your district. This includes detailed forms listing your income, expenses, assets, debts, and financial transactions. Once filed, the automatic stay takes effect, halting creditor actions. Your attorney will ensure all paperwork is accurate to avoid delays or complications.  https://www.uscourts.gov/court-programs/bankruptcy

Step 4: Meet with the Bankruptcy Trustee

After filing, a bankruptcy trustee is appointed to oversee your case. You’ll attend a 341 meeting of creditors (named after Section 341 of the Bankruptcy Code), typically 20–40 days after filing. At this meeting, the trustee and creditors (if they attend) ask questions about your finances under oath. Your attorney will prepare you for this straightforward process, which usually lasts 10–15 minutes. https://www.cacb.uscourts.gov/video/bankruptcy-basics-part-5-creditors-meeting

Step 5: Follow the Bankruptcy Process

The next steps depend on your bankruptcy type:

Chapter 7: The trustee reviews your assets to determine if any non-exempt property can be sold to pay creditors. In most cases, filers keep all their property due to exemptions. After 60–90 days, eligible debts are discharged, meaning you’re no longer obligated to pay them. The entire process typically takes 4–6 months. https://www.irs.gov/businesses/small-businesses-self-employed/bankruptcy-frequently-asked-questions

Chapter 13: You propose a repayment plan, which the court must approve. You’ll make monthly payments to the trustee, who distributes funds to creditors. The plan lasts 3–5 years and remaining eligible debts may be discharged upon completion.  https://www.weltman.com/publication-your-top-chapter-7-and-13-bankruptcy-questions-answered

Step 6: Complete a Financial Management Course

Before receiving a discharge, you must complete a debtor education course (different from the initial credit counseling). This course teaches budgeting and financial management skills to help you avoid future debt problems. You’ll file a certificate of completion with the court.

Step 7: Receive Your Discharge

Once all requirements are met, the court issues a discharge order. In Chapter 7, this wipes out eligible debts. In Chapter 13, it eliminates remaining eligible debts after completing the repayment plan. Note that some debts, like student loans, child support, and certain taxes, are typically not dischargeable. https://www.justice.gov/ust/bankruptcy-information-sheet-0

What Happens After Bankruptcy?

After bankruptcy, you can start rebuilding your financial life. While bankruptcy stays on your credit report for 7–10 years (7 for Chapter 13, 10 for Chapter 7), its impact lessens over time. To rebuild credit, focus on paying bills on time, maintaining a low debt-to-income ratio, and using secured credit cards responsibly. https://www.boginmunns.com/faqs/bankruptcy-frequently-asked-questions/

Bankruptcy also offers a fresh start, free from the stress of unmanageable debt. You may be able to qualify for certain loans, like FHA mortgages, as soon as 1–2 years after filing, depending on your situation.

Why Work with LONG & LONG?

Attorney Martin E. Long is a former Bankruptcy Trustee for the U.S. Bankruptcy Court, District of Colorado. Navigating bankruptcy can be overwhelming, but you don’t have to do it alone. At LONG & LONG, our compassionate bankruptcy attorneys in Denver, Colorado have helped countless clients throughout Colorado achieve debt relief through Chapter 7 and Chapter 13. We provide personalized guidance, from filing your petition to securing your discharge, ensuring a smooth process.

Ready to take control of your finances? Contact us today for a free consultation. Call 303-832-2655 or fill out our online contact form to schedule an appointment. Let us help you start your journey to a debt-free future.

Frequently Asked Questions About Bankruptcy

Will I lose everything if I file for bankruptcy?

No. Exemptions protect certain assets, like your home, car, and personal belongings, in most cases. An experienced bankruptcy attorney will maximize what you keep.

 Common Bankruptcy Questions

How long does bankruptcy take?

Chapter 7 typically takes 4–6 months, while Chapter 13 lasts 3–5 years due to the repayment plan.  https://hallnavarro.com/11-common-bankruptcy-questions-answered/

Can bankruptcy stop foreclosure?

Yes, the automatic stay can temporarily halt foreclosure, and Chapter 13 can help you catch up on missed payments.

Don’t let debt control your life. Contact LONG & LONG at 303-832-2655 or through this website. You will receive a quick response today to learn how bankruptcy works and explore your path to financial freedom./bankruptcy-blog/chapter-7-vs-chapter-13-bankruptcy/

Understanding Bankruptcy and Divorce

Bankruptcy and divorce are two separate legal processes, but they often intersect when a marriage ends amid financial strain. Bankruptcy can help eliminate or reorganize debts, while divorce divides assets and liabilities between spouses. The timing of these events can significantly affect your financial outcome, so it’s critical to weigh your options carefully.

There are two primary types of personal bankruptcy to consider:

• Chapter 7 Bankruptcy: A liquidation process that wipes out most unsecured debts (e.g., credit card debt, medical bills) but may require selling non-exempt assets.
• Chapter 13 Bankruptcy: A repayment plan that allows you to restructure debts over 3-5 years while keeping your assets.

Each type interacts differently with divorce, so let’s explore the timing question step by step.

Filing Bankruptcy Before Divorce

Filing for bankruptcy before finalizing your divorce can streamline the process, especially if you and your spouse are on amicable terms and share significant debt. Here’s why this might be the right choice:

Pros:

1. Joint Filing Option: If you’re still married, you and your spouse can file a joint bankruptcy petition. This can save time, reduce legal fees, and address all marital debts in one case.
2. Simplified Debt Division: Bankruptcy can discharge shared debts (like credit cards or personal loans) before the divorce, leaving fewer financial loose ends to split in court.
3. Lower Costs: Handling bankruptcy first consolidates legal efforts, potentially reducing the overall expense of two separate proceedings.
4. Protects Divorce Negotiations: Clearing debts beforehand can prevent disputes over who’s responsible for what during the divorce.

Cons:

1. Delays Divorce Proceedings: Bankruptcy triggers an “automatic stay,” halting most legal actions, including your divorce, until the bankruptcy case is resolved.
2. Income Complications: If you file Chapter 7 jointly, both spouses’ incomes are considered. A higher combined income might disqualify you from Chapter 7, pushing you toward Chapter 13 instead.
3. Asset Risks: In Chapter 7, non-exempt assets could be liquidated, complicating property division in the divorce.

Best For:

• Couples with significant joint debt who can cooperate.
• Situations where both spouses want a clean financial slate before parting ways.

Filing Bankruptcy After Divorce

Waiting until after your divorce is finalized to file bankruptcy might make sense if your financial situation is tied up in the divorce settlement or if you and your spouse can’t agree on a joint filing. Here’s what to consider:

Pros:

1. Individual Control: Post-divorce, you file bankruptcy based solely on your income and assets, giving you more control over the process.
2. Divorce Debt Clarity: Divorce agreements often assign specific debts to each spouse. Filing afterward lets you address only your portion of the liability.
3. No Divorce Delay: Your divorce can proceed without interruption from an automatic stay, which might be critical if tensions are high.
4. Protects Settlement Assets: Bankruptcy exemptions can shield assets you receive in the divorce, like a home or car, if timed correctly.

Cons:

1. Higher Costs: Separate bankruptcy filings for each spouse can double legal fees compared to a joint filing before divorce.
2. Lingering Joint Debt: If the divorce doesn’t fully resolve shared debts, you might still be liable for your ex-spouse’s obligations unless discharged in bankruptcy.
3. Credit Impact Timing: Divorce can already hurt your credit; adding bankruptcy afterward might prolong your financial recovery.

Best For:

• Individuals with minimal joint debt or significant personal debt post-divorce.
• Cases where divorce negotiations are contentious or complex.

Key Factors to Consider

To decide whether to file bankruptcy before or after divorce, evaluate these critical elements:

1. Type of Debt: Are your debts joint (e.g., a mortgage or co-signed loans) or individual? Joint debts are easier to handle in a pre-divorce bankruptcy.
2. Cooperation Level: Can you and your spouse work together on a joint filing? If not, waiting until after the divorce might be less stressful.
3. Income and Eligibility: Your combined income before divorce might affect Chapter 7 eligibility. Post-divorce, your individual income could qualify you more easily.
4. Assets at Stake: Consider how bankruptcy might impact property division. Filing after divorce lets you protect assets awarded in the settlement.
5. Timing and Stress: Are you in a rush to finalize the divorce? Bankruptcy first could delay things, while bankruptcy after might extend your financial burden.

How Bankruptcy and Divorce Interact

• Automatic Stay: Filing bankruptcy halts divorce proceedings temporarily, which can be a pro or con depending on your goals.
• Property Division: Divorce courts divide marital property, but bankruptcy courts determine what’s exempt from liquidation. Timing these processes can protect or jeopardize assets.
• Alimony and Support: Bankruptcy doesn’t discharge domestic support obligations (e.g., alimony or child support), so these remain intact regardless of when you file.
• Chapter 13 bankruptcy versus Chapter 7 bankruptcy: Chapter 13 allows discharge of property se

Practical Steps to Decide

1. Consult Professionals: Speak with a bankruptcy attorney and a divorce lawyer to assess your situation. Many offer free initial consultations.
2. Review Finances: List all debts, assets, and income—both joint and individual—to see how each option affects you.
3. Plan Your Goals: Are you prioritizing speed, cost savings, or asset protection? Your priorities will guide your choice.
4. Consider Mediation: If filing jointly before divorce, mediation can help you and your spouse align on financial decisions.

Conclusion: What’s Right for You?

There’s no one-size-fits-all answer to whether you should file bankruptcy before or after divorce. Filing before works best for couples with shared debt and a cooperative mindset, offering a fresh start with lower costs. Filing after suits those with individual debt or complex divorce terms, giving you flexibility post-settlement.

Ultimately, your decision hinges on your financial snapshot and personal circumstances. By consulting experts and weighing the pros and cons, you can choose the path that minimizes stress and maximizes relief. Ready to take the next step? Call or text  LONG & LONG now at 303-832-2655, or through this website,  and ask to  schedule your free consultation to explore your options and secure your financial future. With over  35 years of experience and a former Trustee for the U. S. Bankruptcy Court, Attorney Martin E. Long is the go-to bankruptcy attorney in Colorado. Here’s the clickable link:

Are Divorce Debts Discharged in Bankruptcy?

The first thing you must do when a debt collector calls is to inquire if indeed they are the creditor themselves–such as the actual doctor’s office or hospital business office itself. They may be from a third party collection agency.

Next it is important to determine if they are trying to collect on a real debt or fake debt. As of late, this has become a serious problem. Although there are also many legally and ethically appropriate debt collection firms, many debt collection firms are notorious for operating outside the strictures of the FDCPA. Even with the many protections provided by the FDCPA, some debt collection efforts become too much even for the most resilient debtor.

TAKE STOCK OF YOUR DEBT

            After determining whether your debt is legitimate, you should determine your overall debt. You can obtain a free credit report, and it pays to make sure that all of your information listed is correct. It is best to check your credit report at least once a year to make sure you are not the victim of identity theft.

If after review you find that you cannot realistically pay down your debt to a level you are comfortable with, you should contact a consumer rights attorney who can explain your options; this may include evaluating bankruptcy options. 

FILING FOR BANKRUPTCY

Bankruptcy is a federal law that provides the ultimate trump card for almost all debt collection activity. A Chapter 7 allows debtors to get rid of their dischargeable debt without further payments. A Chapter 13 allows debtors to eliminate dischargeable debt while paying  nondischargeable debt such as taxes, child support, student loans. As such, there are extremely few situations where a debt collector would not be stopped in their tracks if the debtor filed for bankruptcy.

Experienced bankruptcy attorneys understand the larger legal structure of debtor-creditor rights and responsibilities. They know what creditors are able to sue for, how to go about defending those claims and ensure that their clients’ rights are scrupulously protected. They understand whether a debt is unenforceable due to statute of limitations or if the creditor would not be able to obtain jurisdiction over you. Once you retain an attorney, they will stand between you and the debt collectors. Depending on the action plan that you and your attorney decide upon, your attorney may try to negotiate the debt down to a reasonable level, work out a payment plan or deal with the creditor through a bankruptcy proceeding.

GET LEGAL HELP

            If debt collectors are harassing you, it pays to know your rights and to have an aggressive, experienced advocate that knows how to deal with them both legally and practically. The attorneys of Long & Long have decades of experience in thousands of bankruptcy cases. Few law firms can match the dedication, professionalism and experience of Long & Long. In fact, Attorney Martin Long is a former Trustee for the U. S. Bankruptcy Court. You can contact us by calling (303) 832-2655. 

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Best Ways to Handle Debt Collectors in Colorado | Long & Long

It can be overwhelming to get calls and letters that state you owe more money than you can afford to pay.  It’s certainly understandable to feel helpless and it may feel like you have run out of options as the bills mount. However, you do have rights that will allow you to slow the process down and confirm your legal obligations.  There are some simple steps to make sure that you are exercising all your legal rights so you can get the situation resolved if you have fallen behind on your payments.

Validate the Debt Collector Company Attempting to Collect the Debt

The next time you receive a collection call or letter, you should have the debt collector provide all the necessary information about their company before agreeing to anything.  There are two main options when it comes to legitimate debt collection. 

The first is that you are receiving the call or letter from an in-house collection department for the original lender.  They would be able to confirm all details of your account, including the original agreement or contract, creation date, loan amounts, and missed payments.  You should ask for a debt validation notice from the original lender. It may be in your best interest to explain your situation to the original creditor and attempt to work out a payment plan before they contract a third-party to collect or purchase your debt.  The age of the debt certainly applies, and our firm can help you determine whether it is still enforceable.

The second option is that a third-party company has either been contracted to collect your debt or they have purchased it in an effort to collect for profit.  In the case of a third-party, you can simply request a complete verification of the debt and their rights to collect it before you can discuss anything further.  They must provide this debt validation notice within five days.  This simple step can help protect you from debt collection scams and those debts that are no longer valid because of age or previous payments. 

Note: You do not have to provide any personal information to a debt collector.  They may claim they are simply updating the account information, but you can just insist that all requests be put in writing so that they may be reviewed by your attorney.

Confirm the Records are Accurate

When you are dealing with debt collectors, start with collecting all records of your delinquent accounts.  You will want to have records of the total amounts of any debts, as well as last payments made and an accurate history of any missed payments.  If you do not have complete records of the debt, you will want to reach out to the original creditor to confirm the amount and that the debt was sold or contracted to a third-party for collection.  Errors can easily happen with third-party debt collection because the accounts are often bought in bulk and generally just include a spreadsheet with basic account details.  Once you have collected and verified all your account records, our firm can help put together the best debt resolution plan.

Know Your Rights

You have many rights at the federal and state level as a consumer in Colorado when it comes to debt collection.  The Federal Trade Commission protects consumers with many key rights in the Fair Debt Collection Practices Act.  These include the right to only be contacted between 8 am and 9 pm, and the ability to request that the debt collector stop contacting you with a cease-and-desist letter.  The cease-and-desist letter does not mean that you have resolved the debt, and you can still be sued by the creditor or debt collection agency. 

Once the debt collector contacts you, they must provide written confirmation of the amount of the debt, the company it is owed to, and the acknowledgement that you have 30 days to dispute the debt or it will be considered valid.  You can request the debt validation letter without accepting responsibility for the alleged debt or agreeing to pay back any portion. 

The State of Colorado offers consumers further protection against unsavory debt collection practices with the Colorado Fair Debt Collection Practices Act.  You may also have the additional protection of a six-year statute of limitations on liquidated debt.

At Long & Long, we have more than 35 years of experience with debt resolution and bankruptcy protection in Colorado.  Our firm will make sure that you leverage all your legal rights and move forward with the best plan to deal with debt collectors.  Call us today at 303-832-2655 to schedule a free consultation and to take the first steps towards financial security.

If you have significant debt, you may already be aware that filing for bankruptcy can ease this pressure and serve as an avenue towards debt relief. To keep expenses as low as possible in this already financially strenuous time, you may be wondering if filing for bankruptcy is possible without an attorney. The short answer is: yes, you technically can do it yourself, however by not consulting an attorney you take on a number of risks that can easily be avoided. Filing on your own is possible, although consulting an attorney for advice at the very least is strongly recommended. If you or a loved one is currently facing a debt crisis, consider the risks below, then contact Denver & Centennial bankruptcy attorneys Long & Long for advice before attempting to file on your own.

The Risks of Not Using An Attorney for Bankruptcy

If you are determined to file for bankruptcy on your own, it is critical to not overlook any aspects of the process. Since bankruptcy is often time-sensitive, making one mistake can not only set you back even further financially, but can give creditors access to your wages, personal bank accounts, and assets while you are struggling to correct your mistakes. Potential mistakes in the filing process include, but are not limited to:

• Missing key information or necessary documents
• Filing the wrong chapter of bankruptcy
• Not considering other options like debt consolidation
• Not qualifying for bankruptcy
• Not needing to file for bankruptcy in the first place
• Not meeting venue requirements
• Claiming the wrong exemptions
• Discharge denied

Given the unique nature of each bankruptcy case, a variety of things must be evaluated before gathering information and ultimately submitting your filing. In addition to deciding which chapter to file for, and gathering the necessary documents, consider that bankruptcy may not even be the right solution for you!

Are You Worried About the Cost of an Attorney?

Worried about the cost? Your Denver bankruptcy attorney at Long & Long understands that this is a financially strenuous time for you and has helped many clients in very similar situations. It is important to think of working with a bankruptcy attorney as an investment that will make your debt relief process made simple and lead to financial security and peace of mind. At Long & Long, we offer a range of options including payment plans, flat fees, and having your fees potentially absorbed into your chapter 13 payment plan, depending on your scenario. For more details, please contact us at 303-832-2655 or fill out the Justia form for a free consultation.

Why an Attorney is Worth It – And Then Some

Bankruptcy attorneys in Denver deal with situations like yours on a daily basis and know the bankruptcy process inside and out. Whether you cannot meet credit card payments, are falling behind on your mortgage, or are completely insoluble, your Denver bankruptcy attorney will serve as a trusted advisor in your time of need. By creating a custom plan from the ground-up and taking the responsibility out of your hands, from the moment you contact a bankruptcy attorney you will be on the right track towards a financially stable future

Don’t Do It Alone! Contact Denver Bankruptcy Attorneys Long & Long

As a former trustee for the bankruptcy court, Martin Long has over 35 years of  experience dealing with bankruptcy matters. Although your scenario is unique, the Denver bankruptcy attorneys at Long & Long have seen hundreds of very similar cases in the past. You trust doctors with your health, so trust a bankruptcy professional with your debt matters! Many of our clients are struggling financially,  we will create a payment plan that works for you. Contact us now for a free consultation!

This  Chapter 7 Bankruptcy page sheds light on the intricacies of bankruptcy laws and proceedings, specifically focusing on the parameters of Chapter 7. Central to understanding this kind of bankruptcy is discussing the ‘means test,’ which is a determining factor for qualifying for Chapter 7. This test scrutinizes the applicant’s financial situation, examining the individual’s income and expenses over the past six months to assess one’s financial situation accurately.

The means test calculation provides an unbiased measure of the debtor’s disposable income, based on nationally and regionally set standards. If the debtor’s income results in minimal or no disposable income, they are typically eligible for Chapter 7 bankruptcy. However, if the debtor has a higher disposable income, it suggests they have the potential to repay a portion of the debts, leading to the ineligibility of filing under Chapter 7.

In scenarios where individuals do not satisfy the means test criteria for Chapter 7, they might still have the option to proceed under Chapter 13 bankruptcy. Rather than liquidating non-exempt assets, which is the fundamental tenet of Chapter 7, Chapter 13 facilitates the creation of a repayment plan to systematically clear debts over 3-5 years while allowing the debtor to keep their property.

Navigating the winds of bankruptcy can be challenging. With the right legal guidance, debtors can understand the nuances of Chapter 7 and Chapter 13, helping them to make a well-informed decision that caters to their unique financial circumstances.

Helping You Regain Financial Health

Deciding to file for bankruptcy can feel like a daunting and disheartening choice. The team at Long & Long will work tirelessly to help you navigate the complexities of Chapter 7 Bankruptcy procedure. Our knowledgeable attorneys are well-versed in examining the detailed financial records required by the ‘means test.’ We can help you understand what the results indicate for your unique financial situation. We aim to empower you to make the most informed decision about your financial future, whether that’s proceeding with Chapter 7 bankruptcy, considering alternative options like Chapter 13, or debunking common bankruptcy misconceptions. We believe that everyone deserves a second chance, which is why providing thorough insights into these important financial matters is our top priority. To help initiate an open discussion about your financial situation, we offer a Free Consultation. Reach out to us and take your first step toward regaining your financial health.

Experiencing the difficulties of debt ends now.

Facing the possibility of bankruptcy can be overwhelming and stressful. However, you don’t have to navigate this complex process alone. At Long & Long, our dedicated team of legal professionals provides comprehensive support and guidance for Chapter 7 Bankruptcy cases. We possess in-depth knowledge and proficiency in bankruptcy laws that can protect you and lay the groundwork for a brighter financial future. By choosing our firm, you’ll receive personalized attention and advice designed to yield the most favorable outcome. We firmly believe in making legal support accessible. We offer a Free Consultation to help you kick-start the bankruptcy process. Don’t let worries about debt consume your life. Make the first step towards financial relief by contacting Long & Long at (303) 832-2655 or through our website. Experience the unique blend of compassion, commitment, and high-caliber legal services that our clients have come to trust. Here’s the clickable link:

Colorado Bankruptcy Means Test: Frequently Asked Questions

Secured Debt

A secured debt is a debt that is backed by pledged collateral, a lien, a mortgage, or other instruments such as a properly recorded judgment.

Clients often ask what is a secured debt. Think of it this way. When you purchased your home you pledged your home as collateral to the mortgage lender. When you purchased your car, you may have a lien on the title by a lender. Those creditors are secured. If I do not pay the debt the creditor can take my home or car. In the event of default, a secured creditor will typically have first rights to the assets that secures its loan to the debtor. In home mortgages or auto loans, the bank or lender has priority for the amount owed on the home or car to satisfy the debt that is secured by that particular asset.

In the business context, there may be certain secured transactions that involve the pledging of collateral or proceeds.  If a lender gives a business loan, the lender may ask that certain property be “pledged” and that pledge is then recorded as a lien or other instrument proving priority. 

In the event of a sale of that pledged property, such as inventory, a lien will typically attach to the proceeds of that sale thus ensuring the security of the debt. A secured loan will typically have a lower interest rate because the lender has assets that are specifically pledged and that they are entitled to in the event of default. This lowers the risk from the lender’s standpoint and may result in lower interest rates being charged for the loan.

Secured debts will typically provide a lender with more security in the loan given because it has a specific recourse to collect on in the event of default. In the bankruptcy context, secured debts are treated differently than unsecured debts, and the priorities of the creditors with respect to the debtor’s assets are different as well.

Furthermore, if a debtor wishes to keep certain pledged or secured collateral then there will be additional considerations and issues presented in the bankruptcy proceeding.

Unsecured Debt

An unsecured debt is the opposite of a secured debt, the lender has no specific recourse to any assets of the debtor.

Utility bills and credit cards are some of the most common unsecured debts that individual’s encounter. If an individual has a medical bill or credit card that they do not pay, the hospital or credit card issuer does not have a specific asset(s) that secure its loan. The credit card issuer is on its own in recovery from whatever assets the debtor may have and will usually be later in line to collect compared to creditors that have a secured loan.

In a business context, it is rarer to see unsecured debt (particularly in a tight credit environment that we have been experiencing) and where there is an unsecured loan, there will typically be tighter restrictions and oversight.

Some of these restrictions may come in the form of cash flow obligations or certain financial ratios that the business must maintain in order to be considered “solvent” or “not in default” in accordance with the loan documents.

To best handle your debts, you will need an experienced and practiced attorney who can help you make the best decisions for you and your family. As a former trustee for the U.S. Bankruptcy Court, with over thirty-five years experience, Martin Long is an expert in the industry with decades of experience in Bankruptcy Law in Colorado. We also serve Aurora, Centennial, Highlands Ranch, Denver, Littleton, Castle Rock and the Denver metro area with three convenient locations. For help with your financial matter, call the Law Office of Long & Long for a free initial consultation at 303-832-2655 or go to www.denverbankruptcylawyer.net and make a consultation request.

How Do Garnishments Occur?

Bank garnishment orders, which give creditors the means to collect unpaid debts, will arise as part of a judgment in a creditor’s collection case from a Colorado court of law. A garnishment order will first freeze bank accounts in which you possess full or partial ownership of– meaning your creditors will have access to both your personal and shared bank accounts. The notion that someone other than you will be granted absolute access to your bank accounts is extremely unsettling, however this is unfortunately a very common vehicle that creditors will use to pursue unpaid debts. Fortunately, with an experienced Denver bankruptcy attorney, there are ways to fight back against bank levies and reclaim partial or full control of your finances.

Protecting Yourself Against Garnishments

When served with garnishment orders, it is important that you act quickly to protect certain streams of income from creditors. This is accomplished by filing what is known as a claim of exemption, which will protect funds such as wages needed for financial obligations and other revenue streams either partially or completely. Filing a claim of exemption is extremely time sensitive and can be complicated and will often require the help of a Denver bankruptcy attorney to be approved.

Using Bankruptcy to Your Advantage

Even if your creditors have been given the right to garnish your accounts, you have missed the claim of exemption deadline and have otherwise uneffectively defended your finances against your creditors, filing for consumer bankruptcy with the help of a Denver bankruptcy attorney can be an extremely effective solution. Bankruptcy can not only protect you from future garnishments by the removal of these orders, but can also be a strong justification to recover funds that have already been garnished. Borrowers are often surprised to hear that, yes, through an effectively filed bankruptcy claim you can recover funds that have already been levied by your creditors. This will of course depend on your scenario and in many cases requires the effective negotiation that only a specialized bankruptcy attorney can provide.

Contact Long & Long for the Protection or Reversal of Bank Account Garnishment

Bank account garnishment is one of the most frightening tools that creditors can use to collect their debts, however your best defense may be to file for bankruptcy with the help of a seasoned Denver bankruptcy attorney. Even if you aren’t looking to claim bankruptcy, our debt settlement attorneys can offer advice on the garnishment process, and how to protect certain revenue streams. If you are concerned about garnishment, contact Martin Long today, a Denver Bankruptcy Attorney and former trustee for the U.S. bankruptcy court, at 303-832-2655 for a free consultation.

Debtor Protection Under the Automatic Stay

Once the bankruptcy case is filed an automatic stay under 11 U.S.C. §362 goes into effect. The result of the filing is that creditors and other entities are prevented from:

• Commencing or continuing judicial and administrative proceedings against the debtor that was or could have been commenced before the case was filed.
• Enforcing a judgment against the debtor or property of the estate.
• Acting to obtain possession of, or control of, property of the estate.
• Creating, perfecting, or enforcing any lien against the property of the estate.
• Creating, perfecting, or enforcing any lien against the property of the debtor to the extent the lien secures a claim that arose before the commencement of the bankruptcy case.
• Acting to collect or recover a claim against the debtor that arose before the commencement of the bankruptcy case.
• Setting off any debt owing to the debtor that arose before the commencement of the bankruptcy case with a claim against the debtor.
• Commencing or continuing a proceeding against the debtor before the United States Tax Court under specific circumstances.

These are very broad protections for the debtor in the debtor’s quest for a fresh start. Most important to debtors is it stops lawsuits, wage garnishments, bank garnishments, auto repossessions, most evictions, and home foreclosures. Violation of the automatic stay may result in contempt of court proceedings. However, there are exceptions to the automatic stay.

Exceptions to the Automatic Stay

The filing of a bankruptcy case does not operate as an automatic stay in the case of:

• Criminal proceedings against the debtor.
• Commencing or continuing paternity actions, modifying domestic support obligations, child custody or visitation actions, domestic violence actions, and divorce proceedings (except to the extent the divorce proceeding seeks to determine the division of property of the bankruptcy estate).
• Collecting a domestic support obligation from property that is not the property of the bankruptcy estate.
• Garnishments for domestic support obligations.
• Suspending or restricting driver’s licenses, professional and occupational licenses.
• Under specific sections of the Social Security Act, reporting overdue domestic support to a credit reporting agency, intercepting a tax refund, or enforcing a medical obligation.

Other exceptions too numerous for this article also apply. For a creditor to obtain relief from the automatic stay they usually must file a motion for relief from the automatic stay. This allows the Court and parties in interest an opportunity to analyze the appropriateness of the proposed relief.

If you have questions on how the automatic stay may affect you or your business, have them reviewed by an experienced bankruptcy attorney and former trustee for the U.S. Bankruptcy Court. Call or contact Martin Long at LONG & LONGnow at 303-832-2655, or www.denverbankruptcylawyer.net.

LONG & LONG