Why File for Colorado Bankruptcy?

Reasons to File for Colorado Bankruptcy

Colorado bankruptcy can be an effective legal vehicle for resolving serious debt issues. Although it may not be the right debt relief solution for everyone, it can be the best option when people are struggling to cover their living expenses, they can’t make their debt payments and/or they have little to no income to put towards their debts.

Top Reasons to File for Colorado Bankruptcy

Colorado Springs Bankruptcy attorney Why File for Colorado Bankruptcy?

Of all of the reasons to file for Colorado bankruptcy, one of the most important is to get a financial fresh start. Contact us to discuss your best debt relief options.

While there can be a lot of reasons to file for Colorado bankruptcy, here’s a look at some of the most common reasons. When people file for Colorado bankruptcy, they can:

1 – Stop Creditor Calls and Lawsuits

As soon as a bankruptcy petition is filed with the court, a court order known as an automatic stay goes into effect. This automatic stay will immediately prevent creditors from:

  • Contacting you, including calling you and/or sending you letters regarding your outstanding debt
  • Filing or pursuing lawsuits against you – In fact, if a creditor obtains a judgement against you after you have filed for bankruptcy, that judgement would be considered void.

Getting this relief from creditor contact and threats of lawsuits can start to alleviate people’s stresses while allowing them to focus on resolving their debt issues.

2 – Stop Foreclosures and Repossessions

Another important reason that people file for Colorado bankruptcy is to stop the foreclosure and/or repossession process. Just as the automatic stay will prevent creditors from suing debtors, it will also prevent these creditors from taking other punitive actions against those who defaulted on their debt by immediately stopping foreclosures and preventing repossessions.

What’s more is that, depending on a debtor’s circumstances, filing for Colorado bankruptcy may allow people to keep their homes and/or vehicles:

  • Through Colorado bankruptcy exemptions
  • By discharging certain debts so they can get caught up on back mortgage and/or vehicle payments.

When retaining a home and/or vehicle is not possible, however, Colorado bankruptcy can still be beneficial by providing debtors with options such as lien stripping and/or cramming (again, depending on an individual’s circumstances).

3 – Stop Wage Garnishments

Another way creditors can try to come after people who owe them money is by garnishing their wages. These garnishments, however, can also be halted through the automatic stay provided with Colorado bankruptcy, allowing people to retain their income while they work on resolving their debt issues.

With wage garnishments and Colorado bankruptcy, it’s important to note that the automatic stay will not reverse garnishments that have already gone into effect; therefore, it’s crucial for debtors to proceed with a Colorado bankruptcy filing before their wages are garnished.

4 – Get a Financial Fresh Start

Ultimately, one of the primary reasons to file for Colorado bankruptcy is to get a financial fresh start. By eliminating a substantial portion of debt through Colorado bankruptcy, people can get real relief from serious debt, allowing them to get their finances back on track.

Discuss Your Best Debt Relief Options with Our Colorado Springs Bankruptcy Lawyers 

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact the trusted Colorado Springs bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our Colorado Springs bankruptcy attorneys bring more than 35 years of experience to our clients’ cases, making them effective at successfully resolving even the most complex bankruptcy cases on behalf of individuals and businesses alike.

To find out more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with as much specific professional advice as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.