Bankruptcy Fraud can Lead to Some Terrible Results

Are you thinking about filing a bankruptcy in Denver and have a little nestegg you are planning on hiding so you have some cash coming out the other side of bankruptcy filing in Denver.  This is understandable, but this article is to strongly encourage you to refrain from following through with this temptation.  Why?  Here are a few of the most compelling reasons to avoid bankruptcy fraud in Denver:

• The law is geared to give you a “fresh start” with your finances, not a head start.  What this means is the law is trying to protect you by eliminating your debts, but also needs to protect your creditors from getting ripped off because you want some cash at the end of the process.
• Anyone can file they suspect you are hiding funds.  It is not like the FBI researches every case, but they can get tipped off by friends, family, a nefarious ex who wants to see you suffer…  you risk being caught because there are methods in place to punish people guilty of bankruptcy fraud.
• It is expensive — you can be fined $250,ooo for bankruptcy fraud – Is it really worth it?

What’s the moral?  Mainly there are several things you need to consider here.

• It is wise to disclose all assets to your bankruptcy attorney in Denver
• You Denver bankruptcy attorney will help you realize some income sources you may not have thought of, protecting you from the risk of bankruptcy fraud in Denver — This is why you want a bankruptcy attorney in Denver working for you!

Please give us a call for a free bankruptcy consultation in Denver!

Reaffirmation Agreements in Denver

A reaffirmation agreement is an agreement where the debtor chooses to be legally responsible again for a secured debt that would otherwise be dischargeable in their Chapter 7 bankruptcy or Chapter 13 Bankruptcy in Denver. An Bankruptcy attorney in Denver will tell you reaffirmations are voluntary and must be filed within the sixty days after the Meeting of Creditors. A reaffirmation does not always need to be entered into in order to keep property. Some creditors in Denver and elsewhere will allow debtors to continue to make payments after the bankruptcy in order to retain the property. Not all creditors will allow this and the debtor needs to understand that if a reaffirmation is not entered into the creditor could take the property back at any time even though the debtor has continued to make payments as per their current contract. A reaffirmation is a new contract and can be negotiated. Depending on the creditor the debtor may be able to negotiate down the balance owed and the interest rate.
A reaffirmation can only be done if it does not pose an undue hardship on the debtor. If an attorney helps with the reaffirmation, they will need to certify that entering into the agreement will not cause the debtor a financial strain. If the debtor completes the reaffirmation on their own they may need to appear before a judge to determine if the reaffirmation is in the debtorʼs best interest. If the judge believes that the agreement will pose an undue hardship on the debtor, he/she can keep the agreement from being entered into. After a reaffirmation is entered into the debtor can still change his mind, within sixty days from the discharge date the debtor can request in writing to have the agreement voided.  It is great to have a bankruptcy attorney involved as you’ll save yourself time and hassle.  Consider our attorneys for you bankruptcy services in Denver.

Student loans are a non-dischargeable debt, which means that filing bankruptcy will not eliminate this debt. It may be possible to discharge student loans if you can prove that paying your student loan imposes an undue hardship on you and your family living here in Denver, Colorado.

As an attorney, we realize it is very difficult to show undue hardship unless you are physically unable to work and will have no opportunity for employment in the future. This applies to private as well as federal student loans.

A Chapter 13 bankruptcy allows a person to consolidate their student loans with their other debt and make payments into a plan for three to five years. To do this in Denver, a person must have a steady income with disposable income and meet the guidelines of secured and unsecured debt. After the life of the repayment plan you will continue to be responsible for the amount still owed on your student loans.

Student loan lenders often offer different repayment alternatives. Contact your lender and see if a repayment plan is possible where the loan is stretched out over a longer period of time to bring down your monthly payments or if you can make graduated payments which increase as your income increases. Deferment of payments would allow you to stop making payments for a set time to give you a chance to improve your financial situation. Another option would be to consolidate your student loans into one loan to be paid over a longer period of time and often times at a lower interest rate. Do you have an attorney in Denver to work with?  If not, please contact one of our attorneys right away to help you out.

If you live in Denver, Colorado and are considering debt settlement, debt counseling, and debt consolidation are alternatives to filing bankruptcy, but keep in mind that all these alternatives can have a significant negative
effect on your credit.  It is always adviseable to meet with an attorney in Denver to explore your options.

Any attorney will advise you that a debt settlement would allow you to settle your unsecured debt at a lower amount. Usually the creditor will want the agreed upon settlement amount in one lump sum. If you do not have this sum readily available then it is unlikely that debt settlement will be a good option. Although settling a debt can be done by an individual it is best to consult an attorney to ensure that you get the best outcome. Another reason to consult with a professional is to ensure that everything is done properly so that a creditor will not attempt to continue to collect on a settled debt.

Debt counseling is a good way to start dealing with your financial problems. Counselors can help you create a budget and help you find ways to resolve financial issues by creating a plan and consolidating your monthly payments. They may be able to reduce interest rates and the total balance owed. In order for them to be able to consolidate your monthly payments you must first be able to afford the monthly payment.

As an attorney, we realize for many people debt counseling is not an option since their financial situation is such that they cannot make the monthly payment even with the negotiated Debt consolidation can be done by borrowing against the equity you have in your home to pay your debts. This option requires that you have home equity and that you make an informed decision. Being unable to pay a home equity loan puts you at risk of losing your house which would leave you in a worse position than not being able to pay your credit card bill. If you are at this point, a bankruptcy attorney would be good to visit with to explore all your options.

Obviously, you will want to make sure they have the proper credentials. The most important ones are American Bar Association and Colorado Bar Association certified.  You want to make sure the person representing you has the legal knowledge and skill to accomplish the objectives set out after consultations.  This is one reason why many of the Consumer Debt Relief agencies can cause you problems.  You may wind up getting more sales reps trying to badger your creditors and make your situation worse than better by the time all is said and done.  Check out our upcoming horror stories to hear some examples of what happens when people don’t follow this piece of advice.

Next, don’t even bother trying to work with an attorney if you are not ready to be completely candid and actually work through these issues.  If you choose to drag your feet, not file paperwork in time, etc…  don’t waste our time or your money hiring an attorney to try and help when you’re not ready to commit to addressing the problem.  Our biggest complaint with our clients is they do not like to get us the information we need in a timely manner and this causes us sets of legal problems you would not find too compelling.  So, you could do yourself a huge favor by making sure a call that is made is also accompanied by a commitment to follow through when advice is dispensed for your best interest.

Finally, don’t let the thought of going into deeper financial woes scare you off from calling.  Our first consultation is free and we won’t take on clients we can’t give some kind of relief to.  Our goal is to help your financial situation become less of a burden in your life by using the legal means to protect your rights and assets.

We serve clients in Denver, but also in Littleton, Boulder, Lakewood, Golden, Highlands Ranch, Fort Collins, Aurora, Greenwood Village, Centennial, Englewood, Brighton, Commerce City, basically anyone in Denver County, Jefferson County, Arapahoe County, Douglas County, Adams County, or Boulder County, CO.