Wrapping up our blog series 6 Most Common Bankruptcy Mistakes to Avoid, below we will discuss some final common missteps people should avoid making when filing for bankruptcy in order to ensure that their petition is approved and successfully discharges their debt.
Additional Bankruptcy Mistakes that Could Hurt Your Case
Mistake 5 – Failing to know and meet the eligibility requirements for filing for bankruptcy.
In order to be able to get debt discharged through bankruptcy, people first have to be eligible to file for bankruptcy. For Chapter 7 cases in Colorado, this specifically means that people have to meet the following eligibility requirements:
- The residency requirement – Specifically, people have to have lived in Colorado for the “greater part” of 180 days, meaning that people have to have resided in Colorado for at least 91 days before they will have met the eligibility requirement for filing for bankruptcy in the state.
- The credit counseling requirement – Prior to filing for bankruptcy, people have to have completed a state-approved credit counseling course.
- The means test requirement – For this eligibility requirement to be met, people have to take and “pass” a means test, which will essentially determine whether or not a person’s debt to income ratio makes him eligible to file for Chapter 7. People who do not pass the means test can file for Chapter 13 bankruptcy but not Chapter 7.
When people are careless about making sure that they meet all of the essential eligibility requirements for filing for bankruptcy in Colorado, they will end up wasting their time and money, as their case will likely be thrown out and their debts won’t be discharged through their bankruptcy petition.
Here it’s also important to point out that, if a court decides to deny a bankruptcy petition, the automatic stay in bankruptcy ceases to protect a person from creditors once this denial has been issued. This means that a person will once again be vulnerable to repossession, wage garnishments and other punitive actions creditors may try to take in collecting debt.
Mistake 6 – Not hiring an experienced bankruptcy attorney like Job B. Clarke to oversee your bankruptcy case.
The single biggest bankruptcy mistake people make is failing to retain an experienced bankruptcy lawyer who can properly guide them through the bankruptcy process and help them resolve their case as favorably and efficiently as possible.
The fact is that all of the aforementioned bankruptcy mistakes discussed in this blog series can be avoided if people retain a trusted attorney to handle their case.
Denver, Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.
If you are overwhelmed by debt and are looking for a financial fresh start, contact the trusted Denver, Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C.
For more than 35 years, our experienced legal professionals have been dedicated to providing each of our clients with the personalized debt relief assistance they need, and we will work diligently to ensure that our clients obtain the best possible outcomes to their cases.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us using the contact form on this page.