What is Bankruptcy?
Bankruptcy is a legal process which allows a person (a “Debtor”), who owes more money than he or she can currently repay, to either (1) repay a portion of the money over time under Chapter 11, 12, or 13, or (2) have the entire debt forgiven (“discharged”) under chapter 7. Under chapter 7, a Debtor may be required to surrender assets to a trustee. Bankruptcy is also available to businesses, corporations, and partnerships. Even municipal governments can file bankruptcy (under Chapter 9). After a Debtor has filed a case (i.e., “petition”), creditors must stop all collection efforts against the Debtor for a period of time, unless they get permission from the bankruptcy court to continue. This protection from collection efforts is referred to as the “automatic stay.” The Bankruptcy Code and Federal Rules of Bankruptcy Procedure determine which chapter one is eligible to file, which debts can be eliminated, how long repayment must continue, which possessions can be kept, etc. A Debtor must a
Bankruptcy allows one unable to pay their bills to get a fresh start financially. The United States Bankruptcy Code provides for the right to file for bankruptcy, and all bankruptcy cases in Colorado are litigated in Denver Bankruptcy Court. The filing of a petition for bankruptcy in Denver Bankruptcy Court by an experienced Denver Bankruptcy attorney initiates a formal legal proceeding which immediately stops creditors from attempting to collect any debts while the Court considers your financial situation and decides if bankruptcy relief is appropriate.
Bankruptcy is a way for people or businesses who owe more money than they can pay right now (a “debtor”) to either work out a plan to repay the money over time under Chapter 11, 12 or 13, or for most of the bills to be wiped out (“discharged”), as in a chapter 7 case. While the debtor is either working out the plan or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. When the bankruptcy petition is filed, you are immediately protected from your creditors.
