When it comes to making a decision about filing for bankruptcy in Colorado Springs, many consumers have questions about protecting assets.
Colorado Bankruptcy Attorney Stephen H. Swift is committed to helping residents and families earn a fresh start through bankruptcy protection. In most cases, the concerns about asset forfeiture are misplaced. In many bankruptcy cases – even so-called Chapter 7 liquidation bankruptcies – no asset surrender occurs. And, of course, Chapter 13 bankruptcy offers many of the protections afforded by the nation’s bankruptcy laws without the threat of asset surrender.
In many cases, assets have been expended as a consumer attempts to keep his head above water. In other cases, circumstances beyond a consumer’s control have conspired to rob assets of value. After all, upside down mortgages, maxed out credit cards, and leased or mortgaged vehicles are not assets.
Exemptions: Asset Protection & Colorado Bankruptcy
And many assets are protected by law, including:
- $60,000 in home equity.
- Up to $5,000 equity in a car.
- Work equipment
- Personal items, including thousands of exemptions available for jewelry, furniture, clothing, etc.
Retirement accounts and other protected assets include:
- 401k plans
- IRAs
- Pension Funds
- Social Security and Disability benefits
- Personal Injury settlements
- Life Insurance
- Assets held in business partnership
Those with significant unprotected assets will typically file under Chapter 13.
In a Chapter 13 bankruptcy, a list of assets and liabilities are submitted to the court, along with a schedule of income and expenses. The trustee will hold a meeting of creditors and the debtor files a repayment plan.
The court will establish a priority among secured and unsecured creditors. Unsecured claims do not need to be paid in full, so long as a repayment plan is completed in compliance with the terms of the court. Payments are made to the court trustee, and then distributed to creditors.
Chapter 13 bankruptcy is typically used by those seeking to protect non-exempt assets from seizure, while still benefiting from the protections afforded by bankruptcy.
Colorado Springs Bankruptcy: Planning & Protection
Like so many areas of law, bankruptcy affords the best protection to those consumers who use it wisely. Speaking to an experienced Colorado Springs bankruptcy lawyer at the earliest possible stage of your case is the wisest course of action. In some cases, there are time constraints or other limitations on your ability to move assets. Once a bankruptcy is initiated, specific rules apply about the payment of certain debts or the disposal of assets. Seeking advice early and often can ensure that you use the law to your maximum advantage without running afoul of the court.
Contact the Law Office of Stephen H. Swift for a free initial consultation to discuss your situation, your rights and whether bankruptcy may be right for you. Serving clients in in Colorado Springs, Pueblo, Denver and the surrounding area.
Colorado Springs bankruptcy – 866-893-2440 or 719-520-0164 – legal consultation
