If you are being harassed by bill collectors, there is something you can do to make it stop. Through filing either Chapter 7 or Chapter 13 bankruptcy, you can stop the bill collectors and have a fresh start when it comes to your finances.
Bankruptcy helps people in need across the country and in Colorado put an end to the harassment by creditors and gives them a way out. No matter which kind of bankruptcy you declare, creditors must stop all collection calls and activities, instead having the debt managed through the bankruptcy trustee. How creditors are paid is usually determined by what kind of bankruptcy you file. Some debts cannot be discharged, such as student loan debt. Consumer debt, such as credit cards, can.
Chapter 7 bankruptcy can usually only be filed if your household income is less than the state’s median income. Chapter 7 liquidates your assets and uses the funds to pay your debt. It must be kept in mind though that there are exemptions that can be taken, which could mean that your creditors may not get much, depending on how much you owe.
Chapter 13 bankruptcy works somewhat differently in that it looks at your income and sets up a manageable payment plan to help pay off your debts. Because of this, your creditors may get more money and it will take longer until your bankruptcy is discharged. If you cannot meet the criteria for Chapter 7 bankruptcy, this is the kind of bankruptcy you would most likely file.
The best first step when deciding whether or not to file bankruptcy is to meet with a Colorado bankruptcy attorney to help you determine if you should file for bankruptcy or which kind of bankruptcy would work best for you.