What is Chapter 7 Bankruptcy

WHAT IS CHAPTER 7?

Consumers can file bankruptcy under Chapter 7 or Chapter 13 of the United States Bankruptcy code.  In Chapter 7 most of your debts are discharged.  Most of your assets will be protected.  Chapter 7 takes less time than Chapter 13.  Typically, in a few months you receive a discharge of your debts and get a new start on life.  You are eligible for a Chapter 7 if:

•Your household income is less than the median income of your county, currently about $48000 for a household of one and $64000 for a household of 2.

•You have not filed a Chapter 7 in the last eight years or a Chapter 13 in the last six years.

If you have a mortgage and are able to make your payments you can keep your house.

If you have a car loan and are able to make the payments you can keep it.

Chapter 7 will stop garnishments, lawsuits and collection efforts.

Married couples can file a joint Chapter 7 case.  This saves money and ensures creditors cannot file collection lawsuits against a non-filing spouse.  In Colorado this includes common law marriages.