Once you file for bankruptcy under Chapter 7 or Chapter 13, all of your assets are under the control of the bankruptcy trustee. The instant you file for bankruptcy, a bankruptcy estate is established. According to the Bankruptcy Code a bankruptcy estate is comprised of all of your legal or equitable interests in property at the commencement of the case. Property of the estate also includes any interest in property that would have been property of the estate if such interest had been your interest on the date of the filing of the petition, and that you acquire or become entitled to acquire within 180 days after the date of filing. That estate includes all assets that exist at the moment you file bankruptcy. There are a few exceptions. One exception is the right to receive property by inheritance or bequest, when that right happens either before filing or within 180 days of filing bankruptcy. Frequently you can protect your personal or real property through the use of exemptions.

If you inherit money through a will, and the death occurs before bankruptcy or within 180 days of filing bankruptcy, you will be required to turn over the money. If there is no will involved, but rather a payable on death provision on a bank account, you are more than likely permitted to keep the money. In either case, you are required to inform the trustee of the inheritance.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions please feel free to contact me.

Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, Colorado Bankruptcy Help Email, personal bankruptcy free-consultation form.

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What if during a bankruptcy case a debtor dies or becomes incompetent?  In a Chapter 7 bankruptcy case, death or incompetency will not alter the process because the trustee is in charge of administering the estate for the benefit of the unsecured creditors. The situation may differ in a bankruptcy case that involves reorganization of the debtor’s finances as the ultimate goal, as in Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases.

As stated in the Federal Rules of Bankruptcy Procedure, death or incompetence of the debtor should not reduce or put an end to a liquidation case under Chapter 7. In such an instance the estate should be administered and concluded in the same manner, so far as possible, as though death or incompetency had not happened. If a reorganization, family farmer’s debt adjustment, or individual’s debt adjustment case is pending under Chapter 11, Chapter 12, or Chapter 13, the case may be dismissed; or if further administration is possible and in the best interest of the parties, the case may proceed and be concluded in the same manner, so far as possible, as though death or incompetency had not happened.

In a reorganization bankruptcy, what occurs in such an instance is dependent on whether the case can proceed. If proceeding with the case will be helpful to those involved, it may continue.

This allows the administrator of the debtor’s estate to protect exempt assets for beneficiaries, or in the case of incompetence it allows a conservator to manage the creditors involved in the case.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions. Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, Colorado Bankruptcy Help Email, personal bankruptcy free-consultation form.

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The Bankruptcy Code generally distinguishes between four types of debt. They are unsecured debt, secured debt, priority debt, and administrative debt. These debts are distinguished in the following manner:

• Unsecured Debt is debt that you have acquired without committing to any collateral, i.e. debt you have accrued without backing it up with property. This may include a judgment that is not secured by a lien on your property. Examples of unsecured debts are utility bills, medical bills, and credit card bills.
• Secured Debt is debt that you have accrued with a commitment of collateral of some kind. It is also may be a debt that involves a lien on your property. Your creditor has a right to pursue the property you have pledged if you default on the loan. Often a house, or a car, is used as collateral.
• Priority Debt is debt that the bankruptcy code lists as entitled to being paid before most of your other unsecured debts. Examples of priority debts are your employees’ claims on wages, certain taxes, debts related to services and goods provided to your estate during your bankruptcy case, and alimony, maintenance or support of your spouse, former spouse, or your children.
• Administrative Debt is a kind of priority debt. It is debt that results from goods or services provided to your estate during your bankruptcy case. In some instances, lawyer’s fees, trustee’s fees, and other costs involved in your bankruptcy proceeding are included as administrative debts.

If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions please feel free to contact me. Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, Colorado Bankruptcy Help Email, personal bankruptcy free-consultation form.

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Credit counseling is counseling you must attend prior to filing bankruptcy. The credit counselor must be authorized by the US trustee involved in your bankruptcy case. You will receive a certificate to be filed with the Bankruptcy Court upon completion of your credit counseling. If you file jointly with your spouse you both must attend credit counseling. In almost every circumstance, if you fail to file a credit counseling certificate within the allotted time your bankruptcy case will be dismissed. During credit counseling, the credit counselor may propose a budget and a repayment plan, if you can afford such a plan (if so, it is to be filed along with the certificate).

Personal Financial Management Instruction is instruction you obtain after you file bankruptcy. The instruction must be from an agency authorized by the US trustee. It is only required for individual debtors involved in Chapter 7 and Chapter 13 bankruptcy cases. After the instruction is completed you must file Official Form B 23 with the Bankruptcy Court. If a certificate is provided, it should be attached to the Official Form B 23. In Chapter 7 bankruptcy cases, the certificate of completion of a course in financial management must be filed within forty-five days of the first scheduled Meeting of Creditors. In Chapter 13 cases, the certificate is due prior to the completion of all plan payments so that a discharge may be obtained. The failure to file the certificate of course completion in a timely manner, in either a Chapter 7 or Chapter 13 bankruptcy case, could result in your case being closed without a discharge. If this occurs, you will need to pay a filing fee to reopen the case in order to submit the certificate so that a discharge may be obtained.

Please visit the U.S. Trustee Program/Dept.of Justice for current information on approved credit counseling agencies and approved personal financial management instructional courses. And if you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions.

Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, Colorado Bankruptcy Help Email, personal bankruptcy free-consultation form.

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