Steps to Take Prior to Bankruptcy Filing...

Have you been thinking about filing for bankruptcy in Denver and are unsure of the steps needed to file for bankruptcy protection in Denver.   If you are considering Bankruptcy in Denver, here are some of the basics steps you need to start looking at before you pay an attorney in Denver to work on your bankruptcy case.

1. Look at your current assets and liabilities and put them on paper.  This way when you to to a bankruptcy attorney in Denver, then you are a step ahead.  Try and remember everything, so that you can see if you are really in a position for bankruptcy…  or if you need to manage the finances you have better. 
2. Get yourself a bankruptcy attorney in Denver you can trust.  Most attorneys will do a free bankruptcy consultation in Denver.  Take advantage of this and ask questions.  Make sure you trust the bankruptcy attorney…
3. Don’t worry about how bad it seems.  The goal of this process is to give a fresh start.  In a lot of ways, the worse it is, the better chance you will have a successful case.  (Of course don’t go and make it purposely worse right now because the courts take all these factors into mind.

Once you get over your fears, know where you are and can work with someone you trust to get you to a fresh start, you will be glad you took a bit of extra time to get to where you need to be.

Filing a bankruptcy in Denver is a legal process. The following is a brief summary of the steps involved in a Chapter 7 bankruptcy.  As bankruptcy attorneys, we get to go through this process everyday.

1. Credit Counseling- You will need to complete a credit counseling course before filing your bankruptcy. An attorney can help you find a certified course.

2. Filing of the Bankruptcy Petition- The bankruptcy petition is submitted to the court. The petition will contain all of your financial information. Once this has been submitted to the court an automatic stay goes into effect. The automatic stay keeps creditors from foreclosing on your home, repossessing your vehicle, and from garnishing your wages. An attorney will tell you if you are short on data.

3. Trustee is Appointed- Once the bankruptcy petition is filed a trustee will be appointed by the court to review your case.

4. Recent Taxes- The most recent taxes must be sent to the trustee.

5. 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. It is helpful to have your bankruptcy attorney at this meeting.

6. Trustee Action- At this point the trustee has all of your information and will make a decision about whether you qualify for a Chapter 7, if not you have the option of converting it to a Chapter 13. If your case is a no asset case then there is nothing else for the trustee to do. If your case is an asset case then the trustee will sell all non-exempt assets and divide the proceeds among your creditors. Here is where an attorney specializing in bankruptcy can be invaluable. 

7. Debtor Education- You will need to complete a debtor education/financial management course.

8. Discharge- You will receive your discharge two to three months after your Meeting of Creditors.

9. Case Closed- Soon after you receive your discharge your case will be closed. At this point you are no longer liable for any of the dischargeable debts listed in your bankruptcy petition.

Call us if you need an attorney in Denver who specializes in bankruptcy.

This will seem like a lot, but that’s why you can hire us!  According to the Colorado Bankruptcy Court, here is what will be needed!

1. Voluntary petition – Form 1 (01/08) and any necessary exhibits required by the Form.
2. T.L.B.F. 1002-1 Cover Sheet
3. Statement of Financial Affairs – Form 7 (12/07)
4. Summary of Schedules A-J – Form 6-Summary (12/07)
5. Schedules A, B, C, D, E, F, G, H, I, and J – Forms 6A through 6J (12/07)
6. Declaration Concerning Debtor’s Schedules – Form B6 (12/07)
7. Notice to Debtor by Non-Attorney Bankruptcy Petition Preparer – Form B19B (10/05) (submitted only if debtor used the services of a bankruptcy petition preparer)
8. For each debtor, copies of all payment advices, paycheck stubs, or other evidence of all salary, commissions or income received within 60 days before the bankruptcy case was filed, copied on 8 1/2 by 11 paper with the debtor’s first and last name printed on top of each page (and bankruptcy case number, if a number has been assigned); or, if applicable, complete T.L.B.F. 1007-1 (“Statement Concerning Payment Advices Due”) for each debtor.
9. Attorney Fee Disclosure Statement – L.B.F. 102.1
10. Verification of Creditors’ Matrix – L.B. Misc. Form List
11. Creditors’ Matrix (on a computer floppy disk or CD) (see attachment to Amended GPO-2001-7 for instructions).

Additional Items due from Individual Debtors:

• Social Security Number Statement – Form 21
• Statistical Summary of Certain Liabilities – Form 6- page 2 (12/07)
• Exhibit D Individual Debtor’s Statement of Compliance with Credit Counseling Requirement (Official Form 1 Exhibit D)
• Certificate of Credit Counseling showing that each debtor completed credit counseling from an approved counselor (see Question 12) sometime within the 180 days BEFORE they filed the case. If each debtor did not receive the counseling, then, each debtor must file a request with the voluntary petition that states sufficient facts to justify an extension of time to get counseling as listed in 11 U.S.C. § 109(h)(3) or a permanent exemption under Section 109(h)(4).
• Chapter 7 Individual Debtors:
  • Statement of Current Monthly Income and Means Test Calculation Form 22A (01/08)* (unless the nature of debts are from the operation of the debtor’s business)
  • Statement of Intention – Form B8 (10/05) (due thirty days post-petition) (the failure to comply with your stated intentions and file reaffirmation agreements or motions to redeem personal property that the debtor does not intend to surrender has ramifications beginning 45 days after the first scheduled meeting of creditors according to Section 362(h) of the Bankruptcy Code) (for more information on reaffirmation agreements, see Question 25)
  • Exhibit D,Individual Debtor’s Statement of Compliance with Credit Counseling Requirement (10/06)
  Chapter 11 Individual Debtors:
  • Statement of Current Monthly Income – Form 22B (01/08)*
  Chapter 13 Individual Debtors:
  • Statement of Current Monthly Income and Disposable Income Calculation – Form 22C (01/08)*
  • Plan – T.L.B.F. 3015-1 (must be filed no later than fifteen days post-petition)

Additional Items due from Chapter 11 debtors:

• List of Twenty Largest Creditors – Form B4 (10/05)
• List of Equity Interest Holders – Required by Fed.R.Bankr.P. 1007(a)(3)
• If the debtor is a corporation it should file a corporate ownership statement – Required by Fed.R.Bankr.P. 1007(a)(1) Small Business Debtors must file the most recent balance sheet, statements of operations, cash-flow statement and Federal income tax return; or a verified statement that those documents do not exist and have not been prepared or filed.