Are You Upside Down on Your Mortgage?

Meet John and Sarah, a couple who have been married for 5 years in Denver.  They bought a home about 4 years ago in Lakewood which ran $280,000 when they purchased the home.  John had a nice job with Frontier Airlines, but when they filed Chapter 11 in Denver, he was a casualty.  It happens too much.  Now they are looking around and seeing homes just like theirs on the same block selling for $170,000… John is now working at a major retail chain and struggling to make all the payments.  Sarah is pregnant with their second child and they are stressed about their finances because they keep falling behind?

When should you walk? When should a bankruptcy in Denver be considered?  Does saving a $1,000 a month which could really be used to stay afloat make it OK to walk from a home with memories?  There can be feelings of guilt… There can be uncertainty.  This is where our bankruptcy firm in Denver can help!  We are not motivated by the banks, by your creditors, we are motivated to help you get the fresh start you need.  You may be able to keep your home, it may be better to walk.  We will help you step by step through this emotional and personal decision.  If you feel buried and are upside down in your mortgage, maybe it is time to get a free bankruptcy consultation in Denver!

1. Evaluate your financial situation and determine whether a Chapter 13 bankruptcy is in your best interest. Chapter 13 bankruptcy is an alternative to Chapter 7 bankruptcy, it is for individuals who have a regular income and who want to pay off their debts over time. In a Chapter 13 bankruptcy the individual will repay their creditors over the course of three to five years. To qualify for a Chapter 13 bankruptcy your secured and unsecured debts must be below a certain amount.  An attorney can help you understand if this applies to you.

2. Have petition filed by yourself or your attorney. Once your petition is filed by you or your attorney, an automatic stay is in place which stops actions like garnishments, foreclosures, and creditor harassment. The Chapter 13 bankruptcy petition must include: a) Credit counseling certificate b) Schedule of assets and liabilities c) Schedule of current income and expenditures d) Schedule of executory contracts and unexpired lease e) Statement of financial affairs f) Debt repayment plan g) Sixty days of pay advices h) Statement of monthly income

3. Most recent taxes must be sent to the trustee appointed by the court.

4. Pay all court fees.

5. Attend the Meeting of Creditors. After filing a day and time will be scheduled for the meeting of creditors, this is usually twenty to thirty days after the date of filing. At this hearing you will meet with the trustee to go over your filed petition and if any creditors are present you will be able to explain your financial situation. The meeting of creditors is usually short, taking about ten to fifteen minutes.  This is one of the best places to have your attorney as it will keep you from sabotaging the bankruptcy process.

6. Attend the Confirmation Hearing. At this hearing a bankruptcy judge will determine if your repayment plan meets bankruptcy code standards and if the plan is feasible. Creditors can object to the confirmation of your plan.  A bankruptcy attorney will help make sure it does meet the standards before seeing the judge.

7. You must begin making your payments to the trustee thirty days after you file the repayment plan. You must do this even if the plan has not yet been confirmed. If the plan is not confirmed you can modify it or convert your Chapter 13 bankruptcy into a Chapter 7 bankruptcy.

8. Debtor Education- You will need to complete a debtor education/financial management course once the plan is confirmed. You attorney can point you to the proper facility to complete this required course.

As you can see, there are a lots of steps to go through when filing a Chapter 13 bankruptcy in Denver.  Why not call for a free consultation with one of our skilled attorneys to get started with #1?

What are some ways you can be found guilty of fraud? Here are the basic ways people get into trouble.

Concealing assets

Fraudulent claims

Destroying paperwork

Concealing paperwork

Distribution Arrangements (like, Larry, here’s my TV, give it back after this bankruptcy deal is over)

Conflicts of interest

False Statements of Declarations

Bankruptcy is not always what you have to choose in straining financial situations.  You can also legally renegotiate debts and still have a chance to keep that cool TV.  What we are wanting to do is to warn you of the legal dangers of fraud.  You don’t have to have once been a millionaire for people to look closely.  You need to make sure that whatever you do, you have the honesty and integrity to work within the legal system set up to protect you in these difficult times.  Your creditors don’t want to lose what you owe  just as much as you don’t want to lose all your stuff.  You don’t always lose “everything” anyway…  If you work with our firm, we will do our best to make sure you are in the best financial position possible after all is said and done.  In order to get to this point we will need your full cooperation and honesty to help you as much as possible.

Please call our office for a free consultation!