Colorado Bankruptcy Dictionary

• Colorado Bankruptcy: A legal system that allows debtors to be permanently relieved of a portion or all of their outstanding debt.
• Debtor: The person who owes the debt and files for Colorado bankruptcy.
• Creditor: The company or person who the debt is owed to.
• Chapter 7: 85% of personal Colorado bankruptcy cases in 2009 are under chapter 7. This is liquidation bankruptcy, non-exempt assets are taken from the debtor and sold to pay the creditors.
• Chapter 13: 15% of personal Colorado bankruptcy cases in 2009 are under chapter 13. The court makes a payment plan the debtor follows until sufficient payments are made to the creditors. No assets are taken from the debtor.
• Automatic Stay: Once the bankruptcy petition is filed with the Colorado bankruptcy court, the court prohibits creditors from collecting more money from the debtor.
• Exempt Asset: Property the debtor keeps after chapter 7 bankruptcy.
• Non-Exempt Asset: Property the debtor loses after chapter 7 bankruptcy. Our skilled attorneys minimize the losses of our clients, many of our clients don't lose any property.
• Equity: An important factor that helps determine which assets are exempt and which are not. Equity is equal to the fair market value of an asset minus the debt owed on it.
• Trustee: A court appointed representative of the creditors. The trustee meets with the debtor and attorney to receive non-exempt assets.
• 341 Meeting: Where the debtor, attorney and trustee meet.
• Discharge of Debt: The goal of every Colorado bankruptcy case. The court permanently relieves the debtor of the debts specified in the petition.

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