Chapter 13 Bankruptcy Options

Declaring Chapter 13 Bankruptcy in Fort Collins

Chapter 13 bankruptcy is designed for individuals who have regular disposable income available but are unable to manage their debt burden. Chapter 13 offers several advantages over Chapter 7—or “straight”—bankruptcy. If the unpaid debt involves a mortgage, Chapter 13 bankruptcy can help you keep your home. Additionally, if you have debts that cannot be eliminated through a Chapter 7 filing, such as student loans and tax debts, declaring Chapter 13 bankruptcy can help you manage these obligations.

When filing for Chapter 13 bankruptcy in Fort Collins, you and your attorney will present the court with a full accounting of your current financial situation and a proposed payment plan. This payment plan must not exceed five years and must pay all “priority claims,” usually tax debts and bankruptcy filing fees, in full unless the creditor consents to an alternative amount. If the court agrees to this plan, you will retain your assets and will make monthly payments to a trustee, who will distribute your payments to the appropriate creditors.

A qualified Fort Collins bankruptcy attorney can help you decide whether declaring Chapter 13 bankruptcy is the best option for your particular financial situation.