With so many myths out there about what bankruptcy in Colorado can and cannot do, it’s worth an explanation of some of the actual benefits associated with bankruptcy. Knowing this can help you make an informed decision about when it’s time for a fresh start by filing bankruptcy.
One of the key questions about bankruptcy is how it will impact a pending foreclosure on your home. While Colorado bankruptcy doesn’t automatically halt mortgages and other property liens with no payment, filing for bankruptcy can stop foreclosure on your mobile home or house, which is a source of great relief to many people who are considering bankruptcy.
Likewise, if your car is in the process of being repossessed, filing bankruptcy can prevent this from actually happening. Working with creditors is one of the most harrowing experiences for many people who find themselves buried in debt. While creditors cannot break certain laws to harass or threaten you regarding your debts, often their tactics come awfully close to this line and can make your daily life difficult. Filing for bankruptcy can stop all creditor attempts to communicate with you regarding the collection of a debt.
One of the primary reasons that people in Colorado consider bankruptcy is to discharge, or eliminate, the majority or all of their debt. While there are exemptions to debt elimination, bankruptcy can help pave a fresh path in your life so that you are not frustrated and buried by debts. Filing bankruptcy can give you that opportunity to breathe and move forward with your life, but you should only file bankruptcy after consulting with an experienced and talented Colorado bankruptcy attorney. Doing so can help you regain control of your life sooner and put you on the path to financial recovery.