9035 Wadsworth Parkway Suite 4500

Westminster, CO 80021

Chapter 7 Bankruptcy Law

Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy. In a Chapter 7, your credit card debt, medical bills and many other forms of debt are discharged, which means they are legally “forgiven.”  This can often include tax debt if the taxes are old enough and you filed the tax returns long enough before filing for bankruptcy.

You also are allowed to protect or “exempt” certain assets from creditors claims, which the government considers “necessary” and “non-luxury.”  Such exempt assets include food, clothing, housing and shelter, automobiles, household goods, jewelry and business assets up to certain maximum values.  Qualified retirement accounts are typically fully exempt.    Any non-exempt asset can be seized and sold by the Chapter 7 trustee and used to pay creditors – that is why we do proper planning to protect your income and assets!

In order to qualify for a Chapter 7 Bankruptcy: 

  • You cannot have filed and received a discharge in a previous Chapter 7 in the last 8 years;
  • Your income must be below the Median Income level for your household size in the region in which you live; OR, if you income is above the Median Income level, you must be able to show that you have no “disposable income” after taking into consideration allowable expenses in your budget.

Call us at 303-429-0419 to talk with an attorney or schedule an appointment!