There are cases in which solutions seem not to exist, but hope should always be by your side, as along with a good lawyer, you can figure out how to get out of the situation. There are a lot to consider and in some cases, Colorado Chapter 13 is better than Colorado Chapter 7. In case you want to get hold of your property, no matter if it is situated in Colorado or not and you are behind with the mortgage, then Chapter 17 is the most suitable choice in case of bankruptcy. There are also financial reasons that should be taken into consideration, as each of them have their own advantages and disadvantages.
On the other hand, people who want to get over everything and who don’t want to pay the mortgage in order to redeem the property, Colorado Chapter 7 is the best alternative. Let’s go through the basic aspects, review them and afterwards, you will be able to decide what is best for you. First of all, the advantages of Chapter 7 are worth mentioning, especially the fact that a new fresh start can be obtained. The only debts that remain after the bankruptcy has been discharged are the secured assets that are mentioned in the agreement from the first place. It is definitely good news for those who don’t want to get involved in a long-term commitment.
More than that, with Colorado Chapter 7, the creditor’s will be off your back, as protection is guaranteed. In a few months, depending on the case and on the lawyer chosen, the case is over and there is no minimum debt imposed. And now for the disadvantages; the non-exempt property is lost by the owners, as it is sold by the trustee. It can be a car, a house or anything major, so this might not be the best choice for everyone. Also, if there are any co-signers of the loan, they will also be stuck with the debt, but they have the option to file for bankruptcy protection.
The advantages and disadvantages of Colorado Chapter 13 are related to the payment plan. As for the advantages, if the payment plan can be afforded, there is no asset lost, regardless if it is non-exempt or exempt. Protection against creditors is assured in this case as well. Colorado Chapter 13 can be filled at any time, unlike Colorado Chapter 7, where it can be filled only once at six years. There is more time allowed for paying debts that are unable to be discharged no matter the chapter, including child support, taxes and so on. Here as well, in case of Colorado Chapter 13, there are disadvantages to take into account.
The legal fees are generally higher, as the process is more complex. The court process of bankruptcy takes longer to succeed, up to 5 years, therefore the plan and the debts will last longer. The payment plan is created according to the post bankruptcy income, which means you will tie up the cash over the entire plan period of Chapter 13. There are certain people who cannot file the Chapter 13 bankruptcy process, including commodity brokers and stockbrokers.
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