In today's slow economy, more U.S. consumers than ever are faced with impossible amounts of debt - and Colorado is no exception. Many Colorado residents, faced with crippling debt, are contemplating bankruptcy. In some instances, bankruptcy is a logical choice for consumers looking for a way to start over. However, many consumers are reluctant to file bankruptcy because they fear losing important assets like their home, car, or retirement benefits. Fortunately, the State of Colorado allows residents to keep their most important possessions while relieving themselves of crippling debt.
Colorado is one of the more bankruptcy-friendly states in the country. Unlike many other U.S. states, Colorado has relatively relaxed exemption rules for Chapter 7 bankruptcy filers. An exemption rule allows a person filing bankruptcy to keep certain assets ?out? of the bankruptcy. This means that filing bankruptcy can get you out from underneath unsecured debts without losing your vehicle or your home.
Many people do not realize that bankruptcy is a fundamental American right that's included in the U.S. Constitution. America's founders included the right to file bankruptcy in the constitution because they believed that the common person is entitled protection from creditors. Many famous people in America's history - from businessmen Henry Ford and Milton Hershey to politicians Abe Lincoln and Thomas Jefferson - have filed for bankruptcy protection.
Because bankruptcy is designed to protect consumers, the bankruptcy laws are written so that individuals can escape crippling debt without losing important assets. A person's home, for example, is often a lifetime investment. In Colorado, not only can residents can keep their home during bankruptcy, but they can also keep as much as $60,000 worth of home equity. Colorado residents CAN file bankruptcy without losing their homes.
In addition to allowing consumers to exempt quite a bit of home equity, Colorado bankruptcy laws also allow residents to keep their vehicle. Logically, cars are an essential tool that consumers need in their daily lives, so they can be exempted. Other essentials - such as tools needed for work, retirement assets, and other basics like clothing - are also exempted during bankruptcy. Of course, there is a limit on the dollar value that can be exempted, so be sure to consult with a bankruptcy attorney.
Of course, filing bankruptcy isn't some magical way to avoid obligations. There are many assets that aren't exempted from bankruptcy. For example, second homes and any cash a consumer has will be taken and distributed to creditors. Furthermore, while there are exemptions for personal assets, these exemptions are generally limited to a few thousand dollars total. So, valuable jewelry, art work, or expensive furniture may be taken as well. There ARE some strategies for keeping these types of assets out of bankruptcy, but they should only be discussed with an attorney.
Most people recognize that the decision to file bankruptcy should be taken seriously, yet not everyone recognizes the importance of working with a bankruptcy attorney. Bankruptcy can be complicated, and the preparation required to file can be significant. Working with a bankruptcy lawyer is a smart way to make the process easier. Additionally, a bankruptcy lawyer can help you avoid mistakes. Consumers who make mistakes while filing bankruptcy could have serious legal and financial problems after the fact, so be sure to consider working with an attorney before filing.
Obviously, bankruptcy isn?t for everyone, and it isn?t an easy out that allows people to avoid obligation. However, in the right circumstances, bankruptcy can make a lot of sense. If you decide bankruptcy is right for you and you live in Colorado, you can take heart in the fact that Colorado is a consumer-friendly state. Now it's time to find a Colorado bankruptcy lawyer. - 31380
Colorado is one of the more bankruptcy-friendly states in the country. Unlike many other U.S. states, Colorado has relatively relaxed exemption rules for Chapter 7 bankruptcy filers. An exemption rule allows a person filing bankruptcy to keep certain assets ?out? of the bankruptcy. This means that filing bankruptcy can get you out from underneath unsecured debts without losing your vehicle or your home.
Many people do not realize that bankruptcy is a fundamental American right that's included in the U.S. Constitution. America's founders included the right to file bankruptcy in the constitution because they believed that the common person is entitled protection from creditors. Many famous people in America's history - from businessmen Henry Ford and Milton Hershey to politicians Abe Lincoln and Thomas Jefferson - have filed for bankruptcy protection.
Because bankruptcy is designed to protect consumers, the bankruptcy laws are written so that individuals can escape crippling debt without losing important assets. A person's home, for example, is often a lifetime investment. In Colorado, not only can residents can keep their home during bankruptcy, but they can also keep as much as $60,000 worth of home equity. Colorado residents CAN file bankruptcy without losing their homes.
In addition to allowing consumers to exempt quite a bit of home equity, Colorado bankruptcy laws also allow residents to keep their vehicle. Logically, cars are an essential tool that consumers need in their daily lives, so they can be exempted. Other essentials - such as tools needed for work, retirement assets, and other basics like clothing - are also exempted during bankruptcy. Of course, there is a limit on the dollar value that can be exempted, so be sure to consult with a bankruptcy attorney.
Of course, filing bankruptcy isn't some magical way to avoid obligations. There are many assets that aren't exempted from bankruptcy. For example, second homes and any cash a consumer has will be taken and distributed to creditors. Furthermore, while there are exemptions for personal assets, these exemptions are generally limited to a few thousand dollars total. So, valuable jewelry, art work, or expensive furniture may be taken as well. There ARE some strategies for keeping these types of assets out of bankruptcy, but they should only be discussed with an attorney.
Most people recognize that the decision to file bankruptcy should be taken seriously, yet not everyone recognizes the importance of working with a bankruptcy attorney. Bankruptcy can be complicated, and the preparation required to file can be significant. Working with a bankruptcy lawyer is a smart way to make the process easier. Additionally, a bankruptcy lawyer can help you avoid mistakes. Consumers who make mistakes while filing bankruptcy could have serious legal and financial problems after the fact, so be sure to consider working with an attorney before filing.
Obviously, bankruptcy isn?t for everyone, and it isn?t an easy out that allows people to avoid obligation. However, in the right circumstances, bankruptcy can make a lot of sense. If you decide bankruptcy is right for you and you live in Colorado, you can take heart in the fact that Colorado is a consumer-friendly state. Now it's time to find a Colorado bankruptcy lawyer. - 31380
About the Author:
Author Jason Lancaster is a former finance manager and a Denver native. If you're considering bankruptcy, be sure to consult with a bankruptcy lawyer to learn more about Denver bankruptcy exemptions and your legal rights.
