WHAT HAPPENS AFTER FILING CHAPTER 7 BANKRUPTCY?
When filing for Chapter 7 bankruptcy, you can eliminate most, if not all, of your unsecured debt. You can keep any property that falls within an exemption. While most property falls within an exemption, if your property does not, then a Trustee may sell the property and use the proceeds to pay your creditors. Our Chapter 7 bankruptcy attorneys in Colorado Springs are ready to help you navigate the process to determine what exceptions you qualify for.
In Colorado, an example of an exemption is the homestead exemption, which allows a person to keep $75,000 of equity in the home, or $105,000 for people over 60 or people who are disabled. You will need to continue to make your payments to those creditors who have a security interest in your property. A married couple filing jointly can double the exemption in most cases with the notable exception of the homestead exemption. Typically when filing for Chapter 7 bankruptcy in Colorado, you can keep not only your exempt property but also property obtained after bankruptcy is filed. There are some exceptions, such as a non-exempt inheritance received within 180 days after your bankruptcy. Also, bills that arise after bankruptcy is filed have to be paid.
There are some debts that bankruptcy cannot eliminate such as some taxes; past due child support or alimony; student loans unless there is undue hardship; debts not listed in the petition; unpaid liens; and debts resulting from fraud.
Public utilities cannot refuse service because of a bankruptcy filing, although they can require a deposit for future service.