Northern Colorado Bankruptcy Eligibility Requirements
Those who find themselves in financial hardship can turn to the bankruptcy team at The Sumner Law Office, P.C. Jerry Sumner, Esq. has been helping individuals and organizations in the Northern Colorado area file for bankruptcy for over 10 years. If you set up an initial consultation with Mr. Sumner, one of the first things you’ll discuss is whether you’re actually eligible to file for a particular kind of bankruptcy.
Individuals and Organizations
All kinds of individuals, businesses, and organizations can file for Chapter 7 bankruptcy, or liquidation bankruptcy. Married couples can choose to file a joint petition or individual petitions. Chapter 13 bankruptcy is reserved for individuals; organizations looking for a method of reorganization must turn to Chapter 11 bankruptcy.
One cannot receive two Chapter 7 discharges within an eight year period. An individual can only receive a second Chapter 13 discharge two years after filing the first petition. No one can file for any kind of bankruptcy if a previous bankruptcy filing was dismissed within the previous 180 days.
Those looking to file for bankruptcy are typically looking to address two kinds of debt: secured debt, which includes mortgages and auto payments; and unsecured debt, which includes credit card bills and medical bills. Technically, there’s no limit to the amount of unsecured debt that can be discharged through Chapter 7 bankruptcy. Chapter 13 bankruptcy can help debtors repay no more than $383,175 in unsecured debts and $1,149,525 in secured debts.
The Means Test
Chapter 7 bankruptcy is reserved for businesses and individuals who do not have sufficient income to repay their creditors. Those who file Chapter 7 bankruptcy must prove that they can pass the “means test,” or that their income is below the state median for a household of the same size. In Colorado, the median income for a single person is $49,549.
Filing for bankruptcy is a very complicated affair—determining eligibility is just the beginning. If you’ve tried other means of debt relief with limited or no success, consider setting up a meeting at Sumner Law Office. Jerry Sumner is a bankruptcy lawyer serving Northern Colorado; whether your filing for bankruptcy on behalf of yourself or your business, Mr. Sumner can help. Our law firm has deep roots in Northern Colorado, and we are pleased to be affiliated with the American Association for Justice, the Colorado Trial Lawyers Association, the National Association of Consumer Bankruptcy Attorneys, and other distinguished law organizations.