Learn More About Bankruptcy

If you are about to file for bankruptcy in Denver, the actions you take or omit can greatly impact the outcome of your case. By preparing for what lies ahead, you may be able to save yourself from dismissal of your case or your discharge being denied.

Bankruptcy is a great way to discharge a significant amount of unsecured debt. However, it can also negatively impact your credit score. Remember, your credit rating is what helps you obtain a loan for a new home, car, or apartment. Fortunately, if your credit score was lowered as a result of bankruptcy, there is a path forward.

If you plan on filing for Chapter 7 or Chapter 13 bankruptcy in Denver, follow these tips to ensure you comply with the U.S. Bankruptcy Code:

I often have clients voice concern over obtaining credit cards after filing for bankruptcy. While it is true that bankruptcy can help you discharge your debt, it can also affect your credit.

When you file for Chapter 7 an “automatic stay” goes into effect which halts all collection attempts by creditors. This also includes any foreclosure sale, albeit temporarily. When you file for Chapter 13 before the sale, however, you can usually stop the foreclosure sale, pay any arrearage you owe the mortgage lender through the Chapter 13 plan, and most importantly, keep your home. In the Chapter 13 plan you continue to make timely mortgage payments. As a result, in most cases at the end of your Chapter 13 plan you are fully caught up on the house payments and keep your home.