Best Bankruptcy Lawyers Colorado Springs, CO

Colorado Springs, CO Bankruptcy FAQs

• Where do I file for bankruptcy in Colorado Springs, Colorado?

  If you are considering filing for bankruptcy in Colorado Springs, Colorado, you will need to submit the necessary legal paperwork at the Denver federal district court. You have the option to file the paperwork via mail, in person, or electronically if you have retained the services of an attorney.

• Where can I get bankruptcy forms in Colorado Springs, Colorado?

  Free online access to all necessary Colorado bankruptcy forms can be obtained by visiting the official website of the United States Courts at https://www.uscourts.gov/.

• In Colorado Springs, can an individual discharge student loans through bankruptcy due to severe financial stress?

  In Colorado Springs, discharging student loans during bankruptcy isn't usually permitted. Still, an exception exists per Section 523 of the Bankruptcy Code. If a person can prove that they're undergoing "undue hardship," there is a chance for the discharge of their student loans. This stringent hardship provision makes it crucial for individuals to show significant financial strain that prevents loan repayment.

• How is income eligibility determined for filing a Chapter 7 bankruptcy in Colorado Springs?

  In Colorado Springs, eligibility for Chapter 7 bankruptcy hinges on income. Those who earn more than the median income for their household size in Colorado, including both individual and spouse's gross income, are typically ineligible. Nonetheless, if an individual's estimated total income over the subsequent 60 months amounts to less than $7,475, they satisfy the means test, making Chapter 7 bankruptcy a viable option for them.

• If a resident of Colorado Springs files for Chapter 7 bankruptcy, what types of debts can they discharge, and which ones remain ineligible for discharge?

  A Colorado Springs resident filing for Chapter 7 bankruptcy can eliminate numerous debts, such as those from credit cards, personal loans, and certain tax obligations. However, exclusions exist. Debts unlisted in their bankruptcy documents, liabilities due to injuries or fatalities from intoxicated driving, and punitive fines like traffic infractions or restitution for misdemeanors remain undischarged.

• If a small business owner in Colorado Springs is dealing with financial troubles, what bankruptcy options are available to them?

  A Colorado Springs small business owner confronting financial difficulties can consider two bankruptcy options. They can opt for Chapter 7 bankruptcy for structured liquidation of assets when creditors are vying for them, or they may consider Chapter 11 bankruptcy for a chance to negotiate debt restructuring. However, it's critical to note that corporations or LLCs, unlike individuals, don't qualify for bankruptcy debt discharge.

• Are there credit counseling requirements for individuals planning to file bankruptcy in Colorado Springs?

  Per the 2005 Bankruptcy Act, an individual considering bankruptcy must undertake credit counseling six months before filing and complete a financial management course post-filing. Numerous non-profit and government-accredited credit counseling agencies are available to residents of Colorado Springs. These agencies provide free services like debt reduction, foreclosure counseling, auto loan payments, bankruptcy filing, and assistance in paying bills. They particularly focus on mitigating credit card and medical debts.