If you’re a Colorado resident facing an insurmountable amount of debt, you may be considering bankruptcy. Bankruptcy helps people get out from underne…
If you’re a Colorado resident facing an insurmountable amount of debt, you may be considering bankruptcy. Bankruptcy helps people get out from underneath crippling debt, but many consumers ignore bankruptcy options because they’re afraid they will lose their car, home, or retirement benefits if they decide to file. Fortunately, filing bankruptcy in Colorado doesn’t mean you will lose your home or your car. In fact, consumers in Colorado can escape debt without losing their most important possessions thanks to bankruptcy exemptions.
In fact, the state of Colorado is one of the most progressive in the country when it comes to bankruptcy. This is due in large part to Colorado’s relatively generous bankruptcy exemption rules. When a consumer files chapter 7 bankruptcy in Colorado, they’re entitled to a series of exemptions. Exemptions are an important legal right that allow people who are filing bankruptcy to keep important assets like their car or their 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.
The right to bankruptcy is important because it allows people to start over. Most people know that bankruptcy laws allow consumers to walk away from most unsecured debts. However, what many people don’t know is that bankruptcy is NOT meant to strip a person of all of their assets. Since a person’s home often represents a lifetime’s worth of work, Colorado bankruptcy exemptions allow residents who file bankruptcy to keep as much as $60,000 worth of equity in their home.
A person’s home isn’t the only asset that’s exempted. Colorado also allows consumers to file bankruptcy without losing their vehicle. Since cars are so important in our everyday lives, it makes sense that they should be protected during bankruptcy. Colorado consumers who file bankruptcy are also allowed to keep tools that are necessary for work, retirement assets, and basic necessities such as clothing and furniture.
Colorado’s bankruptcy exemption rules are designed to help consumers, but they’re not some sort of pass that allows people to avoid their obligations. When a consumer files bankruptcy, any cash, second homes, or valuables they have may be taken and distributed to creditors. These valuables can include clothing, jewelry, furniture, artwork, and even family heirlooms. If you’re serious about filing bankruptcy and you’d like to avoid losing your valuables, there are some strategies you can implement, but you must consult with a bankruptcy attorney to learn more about these strategies and how to implement them.
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.