Bankruptcy Information
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
Just complete this form & let Bankruptcy.me connect you with a bankruptcy attorney near you.If any one group of professionals are busy it is bankruptcy lawyers in Colorado Springs. Many advise that business is much busier than one year ago. Certainly the waiting rooms of most bankruptcy lawyers in Colorado Springs CO are more crowded than before.
The packed lobbies of attorneys have to do with the perfect economic storm of disaster that struck this area. It took some time for that storm to arrive, but it has done some major damage.
The first wave of the storm might be the real estate bubble bursting. While some properties ran up in rates in the area, it was nothing like some regions of the country, which saw increases of one hundred to two hundred percent in value. Obviously, what goes up comes down — hard. What goes up more slowly might make for an easier landing. So, while the region might be having softer landings, it has still put people in distress as far as their home values go, which has a rippling effect in the economy.
The second wave, which is related to the first, had to do with the job losses that began in the home building and related sectors and has now spread across every type of profession. Add in the stock market meltdown and the worst of all economic storms was ripe for striking. And it did.
Most individuals who found themselves caught in this financial hurricane were not prepared, but they cannot be blamed. Few prepare any kind of contingency plans for this type of disaster. These types of plans have simply not been needed, because the last time anything as severe happened was during the Great Depression, which, according to experts, could not happen again.
While the Great Depression has not happened again in reality, the label appearing now is the “Great Recession”. It has caused many individuals to file either Chapter 7 or Chapter 13 consumer bankruptcy filings. Chapter 7 for liquidation of all but exempt assets and a payment to creditors for a percentage of the amount that is owed, or Chapter 13, which reorganizes finances and provides for an orderly repayment schedule.
Colorado Springs bankruptcy lawyers are working diligently every day to stabilize the local economy and to bring debtors and creditors together to work out the best settlements possible.
