While thinking about bankruptcy and the questions clients have had, I realized it might be helpful to start again from the basics, beginning with the question: “What is bankruptcy?”

The bottom line is bankruptcy is a collection of federal laws and regulations intended to help individuals and businesses who owe more debt than they can pay. If you, your corporation, or your partnership owe(s) money then you are referred to as the debtor when filing for bankruptcy. In order to give you a fresh start bankruptcy allows you (the debtor) to devise a plan to repay a portion or all of the debt, to have some of the debt discharged, or to liquidate your assets.

The bankruptcy laws protect and benefit you (the debtor) in ways that are unavailable outside of bankruptcy. One of the main ways in which the bankruptcy laws do that is by prohibiting creditors from any collection efforts while you (the debtor) are filing for bankruptcy, unless the Bankruptcy Court orders otherwise.

During the process of filing for bankruptcy, you must fully disclose all of your assets, liabilities, and other financial information. You also must do one of two things: surrender non-exempt property for liquidation and distribution to creditors, or formulate a plan to allot to creditors at least as much as they would receive if your assets were liquidated.

Hopefully, this discussion has helped to clarify the issue. If you have any questions, or live in Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden and are thinking of filing Colorado personal bankruptcy please feel free to contact me:

                          Kevin D. Heupel, Colorado bankruptcy lawyer

                          Phone: 303-955-7570

                          website: http://COBankruptcyHelp.com

                          email: help@cobankruptcyhelp.com

                          contact form: free consultation form