Protect Your Home, Assets, and Family's Future in Hard Times

The thought of needing to claim bankruptcy is a scary one. Unfortunately, it is an all too common occurrence in today's economy. Before the 1980's, individuals that declared bankruptcy were often viewed as failures or deadbeats. With the unparalleled prolific rise of tabloids and gossip television broadcasts, news of highly affluent and financially successful individuals that have claimed bankruptcy are constantly surfacing. If exceptionally wealthy individuals have claimed bankruptcy during a strong economy then it's perfectly reasonable that every other average income family or individual during a recession would be hit harder financially.

The stigma of being a "worthless failure" is no longer associated with bankruptcy as more and more large cornerstone companies, financial investors, and banks are filing for bankruptcy protection. These organizations are "in the know" and still have declined financially to the point where they seek bankruptcy protection. Note the key word:protection. The car industry, the airline industry, and the banking industry have all jumped on the "bailout and protection" bandwagon. In other words, bankruptcy is a tool, not a financial disease.

Even though all of this is small consolation, filing for bankruptcy still creates an apprehensive situation that requires an experienced hand. There are many subtleties and "strings attached" to claiming bankruptcy since new bankruptcy laws have been enacted. An experienced bankruptcy attorney with several years under their belt is a much needed resource in order to reasonably ensure that all real assets, vehicles, and investments are kept secure from being lost or forfeited when declaring bankruptcy.

A consultation is recommended several months before any paperwork is filed with the courts. The purpose of the consultation is so that the client and Denver bankruptcy attorney may discuss and formulate a timeline and steps needed in order to protect personal assets and investments. Without an experienced attorney as a guide, lenders and banks will very possibly be able to come back and legally levy liens or garnish wages in order to collect on past debts.

Two recommendations which can not be stressed enough is to avoid the do-it-yourself bankruptcy kits that are commonly found in the office supply stores and be wary of the online do-it-yourself bankruptcy websites. While each of these methods will give glimpses of the process and actual filing of the bankruptcy court papers, these are not all inclusive to every individual's situation. Even if an individual does not own any real property or vehicles, relying on the do-it-yourself bankruptcy method will still cost you more in the future. You need an excellent Denver bankruptcy lawyer on your side.

Is Using a Good Denver Bankruptcy Lawyer Worth the Expense?

In today's economic and financial times, more and more consumers and businesses are facing bankruptcy as the only way out of their very poor financial situation. Let's assume for a moment that you have already thoroughly investigated all your possible options that could be used instead of bankruptcy and have already determined that bankruptcy is the best and only way out.

Not so fast. Have you really thoroughly checked into all possible options that could be used instead of filing for bankruptcy? People who are not intimately familiar with the financial industry may have alternatives that they were not even aware of, most of which would be significantly preferable to bankruptcy, which should only be used as your option of last resort. In addition, with the new bankruptcy laws recently enacted, you now need to be approved by the courts to file, and the ability to file is not automatically granted with a rubber stamp.

Now comes the question of whether you should get a good Denver bankruptcy lawyer or try to save some money and make it a do-it-yourself project. Studies have shown that people who have tried to do it themselves without the help of a Denver bankruptcy attorney have been quoted almost unanimously that if they had to do it over again, they would have used a lawyer. The money spent would have been well worth it in terms of the way their financial information was presented to the courts in order to obtain the desired results, as well as the number of assets that they could retain after the filing was completed.

But there is actually more than that. A good bankruptcy lawyer will examine your financial details and then they will be in a position to advise you as to what options you might have, which are all elements of a sound and solid bankruptcy evaluation. This helps you fully understand where you are now and what is your best bet for the future from a financial and economic standpoint. If you do mutually decide that filing is the best way to go, then the lawyer will be there to work with you to present your financial data in the best light possible so that the desired outcome is one that is most beneficial to you; for example, filing chapter 7 or chapter 13.

The best way to resolve your financial problems right now is to not make additional mistakes, and without an evaluation from a qualified Denver bankruptcy lawyer, you probably don't really know what your options are or what is the best way to go. Do what is right for you and don't make more financial mistakes at this critical point in time.

Let Your Denver Bankruptcy Attorney Guide You to a Brighter Tomorrow

Even in the land of plenty, otherwise known as North America, where it appears that most people are doing fine, things can go awry. A layoff or illness can leave you with little or no income and put you in dire straits. Perhaps your business suffers a downturn due to market changes.

Most of us really do experience a great living standard. Most of us are not aware of poverty, we do not see people begging or standing in line at the soup kitchen. But many of us a living a high wire act, gingerly balancing income with outgo.

When something interrupts this fine balance, the first thing that happens is that we start running up our credit cards. Credit gets us by for a while, but soon payments are missed and next thing you know the wolf is at the door.

Trying to pay minimum amounts on a whole bunch of debts just doesn't cut it. Creditors are able to charge horrendous interest rates, and can add on fine for late fees, and processing fees almost at will. No wonder folks can't catch up.

Thank goodness there is such as thing as Debt Consolidation and Bankruptcy, because try as we might to pinch pennies and cut costs, it just isn't possible to be entirely self-sufficient in this day and age. Our society operates on a cash system and when we don't have enough things get rough.

Bankruptcy does offer folks who have hit on hard times a fresh start. Put aside any thoughts of being labeled as an outcast, or having your name published. No one needs to know, other than the folks directly involved.

Consulting with a Denver bankruptcy lawyer will begin to ease your mind almost immediately, because the advice you receive will be unbiased and geared to your individual situation. Perhaps Chapter 7 or Chapter 13 bankruptcy are not what you require. Debt consolidation and counseling may the solution.

Filing for bankruptcy will stop creditors from possibly putting a lien on your house, or garnishing your income. Repossession of your car can be halted as well. Your household things can be retained as well. This is really important because sometimes creditors, if they get serious enough, can do all the above, plus tie up your bank accounts.

With bankruptcy in the works, with your Denver bankruptcy lawyer steering you through the process, you can start to feel hope that you can survive this. Look on it as a turning point. Maybe now you can see that brighter tomorrow just around the corner.

How to Choose a Denver Bankruptcy Lawyer

If you have bankruptcy looming, you may be tempted to go it alone. Sure, you are in dire financial straits, and the thought of hiring a Denver bankruptcy lawyer at this time seems foolish. However, if you do not file the paperwork correctly, you will end up having your bankruptcy denied. It is far less of a risk to hire an expert to help you through the process. As you do, keep these tips in mind.

First, choose a Denver bankruptcy lawyer with plenty of experience. Do not choose a lawyer with just experience practicing law, but rather find one with experience in bankruptcy law. Laws are constantly changing, so your lawyer needs to be working with them regularly. Also, an experienced Denver bankruptcy attorney will have relationships with the local trustees and judges, which will help your cause.

Of course, you also want to look at the cost of the attorney. While lawyers in general are expensive, you do want to choose one with relatively affordable fees. With that being said, do not choose the cheapest lawyer. Most lawyers with a very low price tag are offering their services cheaply for a reason. Find one with reasonable fees compared to the competition.

Since you likely do not have money to pay a lawyer right now, look for one that will offer a payment plan. Make sure you can afford the payment, though, and that it does not stretch for too long of a period of time.

Find a lawyer that offers a free initial consultation. This will give you the chance to meet the attorney. Go to this meeting with questions about the bankruptcy process. If you feel comfortable, you have probably found a good attorney. Never choose a lawyer who makes you feel uncomfortable, no matter how good his credentials are. You will be working with this person on your own personal finances, so you need to be comfortable. Make sure that the lawyer gives you attention and does not make you feel rushed, within reason. You do not want him to be rushing through your paperwork as you file for bankruptcy, because even the slightest error could mean your application for bankruptcy protection is denied.

Finally, makes sure the lawyer offers a contract that you can understand. Never sign something unless you both understand and agree to it. The contract should tell you exactly what the lawyer will do, what guarantees the firm offers, and if any refunds will be made for an unsuccessful claim.

Do You Really Need a Denver Bankruptcy Lawyer?

Filing for bankruptcy is not easy, so you might be tempted to try doing so by yourself to save cash. Since you're declaring bankruptcy, it's probably hard to spend more money on legal fees. Can you risk going through the process without consulting a Denver bankruptcy lawyer?

The answer is: No. Bankruptcy is a complex matter that was made even more difficult because of recent changes to the bankruptcy code. The new bankruptcy law has additional challenges for those trying to get away from their debts. Although filing for bankruptcy is still a choice for many, the process is more difficult now than before.

One of these new changes includes a "means test." This test will determine your capability to pay your debts. If you have a salary lower than the median income in your state, then the test is unnecessary. But if your salary is higher than the median income, then you're required to undergo a more demanding process before you can clear off your debts.

You'll need to confirm your inability to pay by showing all your financial documents that show your income and expenses. There will be lots of technical details involved in this process, so you'll want an appropriate professional helping you understand the proceedings.

You may have friends or family members who managed to go through personal bankruptcy without a Denver bankruptcy attorney. But it's likely they went through the process more than a few years ago. Since the passing of the new bankruptcy reform act in 2005, things are a little different - more difficult, to be specific.

Hiring a Denver bankruptcy attorney who specializes in bankruptcy is still a better idea than going through the proceedings alone. It's a time-saving option that will help your financial life get back on track much, much sooner, making it an investment worth making.

Chapter 13 Wage Earner Bankruptcy Basics

If you're an individual or a sole proprietor, you can file a Chapter 13 bankruptcy to repay all or part of your debts. Under this chapter, you can propose a repayment plan in which to pay your creditors over three to five years. If your monthly income is less than your state's median income, the plan will be for three years unless the court finds "just cause" for a longer period. If your monthly income is greater than your state's median income, the plan must generally be for five years. You cannot have a plan that exceeds the five year limitation.

Many people who file Chapter 13 bankruptcies have:
-Mortgages or other loans they would like to bring current, so they don't lose their homes or other property
-Taxes, child support or student loans that can't be wiped out by Chapter 7 bankruptcy
-Moral convictions that all debts should be paid no matter how long it takes

Basic Chapter 13 Requirements
For a Chapter 13 bankruptcy, you'll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities). You must have no more than $922,975 in secured debt (debt involving property that your creditor might take if you don't make your payments) and $307,675 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. The court filing fee is $274.

The Chapter 13 Process
Following are the steps in the Chapter 13 Wage Earner Bankruptcy process:
The process begins similarly to a Chapter 7 bankruptcy proceeding, with the filing of a petition by the debtor in the federal Bankruptcy Court. In addition to a list of creditors and a schedule of assets and liabilities and a schedule of current income and current expenditures, the debtor must also file a "Statement of Financial Affairs". This statement must indicate:
Any income of the debtor from employment or operation of business including the amounts and the sources.

Any other income.
A list of all payments made to creditors of consumer debts within 90 days of the commencement of the bankruptcy filing.
A list of all payments made within 1 year of filing to or for benefit of creditors who were insiders (relatives, partners, corporations of which debtor is an officer).
A list of suits to which the debtor is, or was, a party within one year prior to filing.
A list all property attached, garnished, or seized.
A list all property that was repossessed within 1 year before filing bankruptcy.
A list any assignment of property for benefit of creditors within 120 days before filing.
A list of gifts and charitable contributions made within 1 year of filing.
All losses from fire, theft, gambling etc. within 1 year or since the commencement of the action.
Any payments made for debt counseling or bankruptcy (including attorneys).
Any transfers of property made within 2 years before filing.
Any property transferred to a trust within 10 years prior to filing.
All financial accounts that were closed within 1 year.
All safe deposit boxes.
Any setoffs to creditors.
Any property held for another.
All premises occupied within last 3 years.
The names and addresses of spouses and former spouses if the debtor lived in community property state.
Any businesses.

It is extremely important that all the forms are completed accurately. Debts that are not listed will not be discharged at the completion of the bankruptcy proceeding. Failing to list assets in an attempt to hide them from creditors may result in serious consequences, including the denial of discharge or charges of bankruptcy fraud.

The filing of the bankruptcy petition must be accompanied by a proposed payment plan over three to five years. The proposed payment plan must provide for the payment of all "priority claims" in full unless the particular priority creditor agrees to a different plan or, if the claim is a domestic support obligation, you agree to contribute all of your disposable income to a five year plan. "Priority claims" are those claims that are given a special status under bankruptcy law, such as taxes and the costs of the bankruptcy proceeding. There are limitations on the ability to modify the payments due on home mortgage loans under Chapter 13.

The bankruptcy trustee appointed by the Bankruptcy Court must review the proposed plan for accuracy and feasibility. The proposed plan is distributed to creditors who have the right to object to the plan if it is unreasonable. If the plan is approved, the debtor keeps all assets during the period of the plan. The debtor makes monthly payments to the bankruptcy trustee who distributes the funds to the creditors according to the plan. If the plan is completed as approved, the debtor is discharged from unpaid debts. If the proposed plan is not completed as approved, several alternatives are open to the debtor depending upon the reasons for the non-completion of the plan.

The bankruptcy trustee may support a modification in the plan if you are unable to complete it, because of circumstances such as serious illness or loss of a job. If the inability to complete the plan is due to circumstances for which you cannot "justly be held accountable," and if your creditors received at least as much as they would have under Chapter 7, and modification is not possible, you can apply for a hardship discharge. The hardship discharge does not apply to debts that were not dischargeable under Chapter 7. See 11 USC 1328(b).

If the debtor fails to keep up payments on the plan, creditors may apply to the Bankruptcy Court to terminate the Chapter 13 proceeding by dismissing the proceeding entirely. If the proceeding is dismissed in its entirety, collection efforts against the debtor's assets may resume as before.

If you are thinking about filing for Chapter 13, you will want to consult with a Denver bankruptcy Attorney to ensure you are completing all tasks needed to be done for correctly filing.
(Article Source: Lawyers.com)

Basics of Chapter 7 Bankruptcy

Chapter 7, otherwise known as "liquidation," is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships. A trustee (appointed by the court) gathers and sells your non-exempt property and uses the proceeds from the sale to pay your creditors.

"Exempt property" is property that a debtor is allowed to keep. What property is exempt is determined by state law. In certain states you are required to use the exemptions under your state's laws. In fifteen states and the District of Columbia, you can chose the exemptions that work the best for you - either the federal exemptions or your state's exemption. It is always best to check with an attorney in your state to see what exemptions apply to your individual case.

The new law also increased the amount of time you have to live in the state before you are eligible to use that state's exemptions. This was to prevent a debtor from moving to a state with more generous exemptions just prior to filing for bankruptcy.

Most chapter 7 cases are "no-asset" cases, which simply means that you do not have any non-exempt property for the trustee to sell. At the time that you file your petition for bankruptcy, you declare whether your case is "asset" or "no-asset" and the burden is on the trustee to change the designation.

Eligibility for Chapter 7
Beginning October 17, 2005, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you must undergo a "means test" to qualify for Chapter 7 bankruptcy. The "means test" is how the Internal Revenue Service will determine who can or cannot file for Chapter 7. Your income and expenses are examined in detail to see how they compare to the standard for your area as set by the IRS. If you earn less than the median income for a family of your size in your state, you can automatically file for Chapter 7 bankruptcy.. But if your income from the last six months is greater than the median income and you can pay at least $6,000 over five years or $100 a month toward your debt, you are not allowed to file for Chapter 7 but must file for Chapter 13 instead. Chapter 13 will require you to repay a portion of your debts over three to five years.

A part of the means test requires that you file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy.

Under the new law, when you file for bankruptcy you must receive approved credit counseling and a budget analysis, at your own expense. Credit counseling should address the means test calculation for you. You can also find mean test calculators on the internet.

Filing Chapter 7
A bankruptcy starts with the filing of the official petition, schedules and Statement of Financial Affairs with the bankruptcy court. In order to complete the Bankruptcy Forms, you must provide a list of all of your creditors and the amount and type of their claim; the source, amount, and the frequency of your income; a list of all of your property; and a detailed list of your monthly living expenses.

As soon as you file for bankruptcy, your creditors are prevented from trying to collect on your debts through what's called an "automatic stay." The stay is designed to preserve your property and to give you a break from litigation.

A creditor must show the bankruptcy judge, after a hearing, that there is "cause" for the creditor to be allowed to continue with collection action (for instance, by showing that the property might deteriorate in value during the bankruptcy period).

If there is property that isn't exempt, the trustee takes control of it. From the sale of your property, the trustee pays the expenses of the administration of the case, and then gives any remaining money to creditors with allowed claims, according to the priority of the claims. Any wages you earn after you file the case are yours, beyond the reach of creditors who had claims on the date you filed for bankruptcy in Denver.

(Article Source: Lawyers.com)

Filing for Personal Bankruptcy in Denver

If you live in the state of Colorado, you are probably aware that the latest leading economic indicator readings show that the state is seeing negative growth levels not seen since the 1991-1992 recession. This is bad news for job growth and the housing market. It is very possible you may be facing a serious financial crisis and currently facing:

An unexpected job loss
Mounting debt caused by medical expenses
Penalties and out of control credit card debt.
Harassing creditor calls.

If you are in a desperate financial situation, filing personal bankruptcy may be an option for you. Federal bankruptcy laws have been created to allow individuals to legally file bankruptcy and in many cases if you qualify to file Chapter 7 Bankruptcy, you may be able to discharge all or a part of your unsecured debt. If you do not qualify for Chapter 7 Bankruptcy you may still be able to stop home foreclosure, end wage garnishments and stop harassing creditor calls by filing Chapter 13 Bankruptcy.

If you live in the state of Florida, it is important to contact a Denver Bankruptcy Attorney prior to filing either Chapter 7 or Chapter 13 Bankruptcy. Filing bankruptcy is a serious financial decision and should not be made before talking to a Denver bankruptcy attorney who can review your assets and debt levels and determine if bankruptcy is the best option for you. Filing bankruptcy can potentially lower your credit score and reduce your ability to get loans. You want to make sure you have a capable bankruptcy attorney in Denver to help you out through the difficult process and ensure you end up better after the process than worse.

How to Choose the Right Denver Bankruptcy Attorney

Individuals facing insurmountable debts often turn to bankruptcy to help remove the burdens serious financial struggles can create. People facing bankruptcy will usually consult an experienced bankruptcy attorney to help guide them through the process and ensure their case is resolved in a satisfactory manner.

Many people do not know where to begin when choosing an attorney. They often wonder "what should I look for in a lawyer?" "How can I tell which lawyer will best serve my interests?" It is important to note that having representation during times of financial crisis can make the entire experience much easier, so choosing the right attorney is a serious decision.

Bankruptcy cases require specialized knowledge of the laws and regulations of each state, so be sure to choose an attorney who is licensed to practice in your state. The Boston bankruptcy attorneys of Joshua Spirn & Associates are happy to provide you with the following tips for choosing the right attorney for you.

How to Choose the Right Denver Bankruptcy Lawyer

The following are some tips for finding the right representative for you:

• Research Denver bankruptcy attorneys online and in print. Review their qualifications, experience, and their mission statements to help get to know their focus and specialties.

• Contact your local bar association. The association can provide you with the contact information for attorneys in your area.

• Ask around. Referrals area great way of finding reliable attorneys. Family and friends may be able to recommend attorneys they've heard of or worked with in the past. Professional recommendations from attorneys in other fields are often very helpful as well.

• Contact attorneys you may want to work with. Visit with them about their practice and experience. Occasionally, attorneys may offer a free consultation about your case.

• Make sure to find an attorney who is licensed in your state.

Once you have selected an attorney with whom you would like to work, it is often wise to draft a specific contract regarding your case. This contract can often outline the services they will provide, the goals they have for your case, and what compensation they will collect from you.

An experienced Denver bankruptcy attorney can make a huge difference when dealing with your bankruptcy case. For more information on choosing the right bankruptcy attorney, visit the website of the Denver bankruptcy attorneys Cohen & Cohen.