Colorado Chapter 13 Bankruptcy

What is Colorado Chapter 13 Bankruptcy?

Colorado Chapter 13 is a common form of bankruptcy. In this type of bankruptcy, the debtor is not required to give up any assets but instead is required to continue to making payments to his or her creditors for a set time, usually 3 to 5 years. The payments that the debtor makes to the creditors are not the normal payments but are smaller payments that are more manageable.

The amount of payments that the debtor must make is determined by a payment plan that the debtor submits to the court for approval. This payment plan will show how the debtor has enough income to pay all basic needs and still have enough to make payments to his or her creditors. The payment plan will also specify the amounts that debtor will pay to the creditors.

Who is Colorado Chapter 13 best for?

Colorado Chapter 13 is highly effective but does have some requirements that must be met before a person can file this type of bankruptcy. The most important requirement that the debtor must meet is the income requirement. Since the debtor must continue to make payments to his or her creditors, his or her income must be large enough to pay all basic need and still have enough left over to make the required payments to the creditors.

The person who declares Colorado Chapter 13 must also be able to live on a budget. The payment plan will last from 3 to 5 years and the debtor must make payments to the creditors accordingly. If the debtor ceases to make the proper payment then he or she will not receive a discharge of his or her debt and so will remain in the same state that they began in.

Free Colorado Chapter 13 Evaluation

The best way to determine if Colorado Chapter 13 is right for you is to sit down with one of our attorneys who can help you evaluate your situation. Fill out our free bankruptcy evaluation to begin the Colorado Chapter 13 process.

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