Chapter 7 Bankruptcy Exemptions in Colorado: What You Need to Know

If you are a Colorado resident and have an overwhelming financial situation, then you may be eligible to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy is often a favorable option, since debtors can have debts eliminated in a matter of months. The average Chapter 7 bankruptcy takes about six months to complete. During this time, some of your assets may be liquidated to pay off your creditors. A Denver bankruptcy lawyer can assess your financial situation and help you understand the exemptions that may be applicable in your case.

The Importance of Accurate and Precise Bankruptcy Filings

Every state has its own rules in regards to exemptions allowed in Chapter 7 bankruptcy or one of the other types of bankruptcies. An exemption is a form of relief that allows a debtor to keep possession over protected items, despite the claims that creditors may have. As you proceed to file for Chapter 7 bankruptcy, it is important that you remember to be as honest and candid as possible in filling out the required schedules. A Denver bankruptcy attorney can ensure that your documents accurately reflect your earnings and possessions.

Learning About Colorado Bankruptcy Exemptions

A Denver bankruptcy lawyer will also help you become aware of the following exemptions that may be applicable in your case:

  • Homestead protection for up to $75,000 on one home
  • Vehicles used for work of up to $7,500 {This section needs to be verified}
  • Clothing of up to $2,200

There are also numerous other exemptions that may be applicable in your case. Contact a Denver bankruptcy attorney to learn more about your legal rights in filing for bankruptcy.

Full Disclosure and Your Bankruptcy Attorney in Denver

Now that you’ve decided that bankruptcy is the only way to deal with your debts, it is important to talk frankly with your bankruptcy lawyer in Denver. Unless you are willing to tell your attorney everything, his or her ability to help you is limited. Choosing to provide complete disclosure will make it much easier to determine the best way to proceed.

Since there is more than one type of personal bankruptcy, your bankruptcy attorney will need to know all the particulars of your situation. This includes all open accounts you have, even those that do not have a balance currently. If you are behind on any of those debts, the lawyer needs to know this at once.

Your income also makes a difference. The court will certainly want to verify your wages or salary, plus any income you may have coming from other avenues. All sources of income must be shared, since this data will also have some bearing on the type of bankruptcy action that your lawyer recommends.

One very important aspect of working with your bankruptcy attorney in Denver is to provide details on all assets in your possession. While many of your assets will be considered exempt if you file for a Chapter 7 bankruptcy, the court trustee and your lawyer would frown on finding out that you attempted to hide any assets. This is especially true if any of those assets could be sold and the proceeds used to provide partial repayment to your creditors. Don’t take the chance of having your petition dismissed. Share details about every aspect of your finances, and the chances of receiving the help you need are much greater.