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Soaring Gas Prices Push Families to Seek Colorado Debt Relief

Despite reaching a four-year low in unemployment claim filings, Bloomberg.com reports that thanks to a 17 percent jump in gasoline prices since January, consumer confidence is again taking a hit. Denver bankruptcy attorneys, like the rest of the nation, have been watching with dismay as gas prices continue to climb up, and up, and up.

Colorado debt-relief lawyers know that for those folks trying to curb spending to help make ends meet, transportation costs often give up the least wiggle room. Kids have to get to school and parents have to get to work, to the grocery, to the bank and so forth. For families struggling to stave off a Denver bankruptcy filing, the fact that gas prices across the nation have clicked upward for eight days straight does little to improve personal finances.

CNN Money reports that Colorado drivers are currently paying about $3.56 a gallon for gas. Thankfully, those prices are on the low end of the national average. As of this post, Wyoming drivers are enjoying the lowest gas prices at $3.40 a gallon as Hawaii drivers are paying out a whopping $4.48.

With that said, it isn’t just the spike in prices, but the amount of income spent to keep tanks full that paints a clearer  image of how gas prices are impacting families. Across Colorado, residents are outlaying 5.4 percent of their income in fuel costs. In contrast, gas prices are gobbling up 11.8 percent of income for Mississippi residents, 10.6 percent for Montana drivers, and 10.0 and 9.9 percent in North and South Dakota, respectively.

Matching soaring gas prices with wobbly consumer confidence and a still-high unemployment rate means that for far too many Colorado families, preventing a personal financial crisis is just not possible. In many cases the economy simply isn’t improving fast enough as bills continue to pile up.

The debt-relief attorneys at the Law Office of Jon B. Clarke bring more than 30 years experience helping clients obtain a fresh start with mortgages, car loans, personal guaranty, credit card debt or other debt relief. To schedule a free consultation today, call (303) 779-0600.

Collections Basics

As you file for bankruptcy or as you are looking into your options, you may be dealing with the debt collections process. Understanding a few of the basic tactics used will help you to be ready for what lies ahead.

Usually, when someone cannot pay a debt, the business has a few options they use in order to collect that money. There are sometimes remedies that work without the involvement of the courts, and some that require it. The first step that most people are familiar with is the near constant calls. You should know that if you are receiving such calls, there are rules that they must adhere to. When these methods fail, they then usually transfer your debt to a collection agency or some other debt collection business and this comes often with even more calls.

There are also sometimes foreclosures or repossessions. This happens when something is used as collateral for those secured debts. When the loan payments are in default, the creditor may then take those goods in order to repay the debt. They typically sell that property and the proceeds will go to that, but if the sale price does not cover the full debt, you may still have to repay whatever is left over. These debts usually involve large store purchases, finance company loans, and motor vehicle loans but may involve other products or goods.

Foreclosure is similar to repossession in that it does involve the creditor taking property that has been secured by certain loans. However, this generally is used in real estate purchases. Not all foreclosures will involve the courts, this is going to depend on your agreement as well as the laws in the state where the real estate happens to be.

Other tactics creditors may use to collect on a debt are going to be garnishments and attachments. These are court ordered. Once all of these things have not brought in the money the debtor owes, the companies may then sue in order to get these debts paid. It has to be proven within the court of law that the creditor is in fact entitled to this enforceable judgment, but also can happen if the debtor doesn’t end up contesting the creditor’s claim.

These are just a few of the standard things that you may see in the debt collection process. It’s always important to know and understand your rights in respect to not only those collections calls but also in the other ways the less scrupulous collectors may work. Protecting your rights is key and as you work to get back on your feet, it’s vital that you work with those whether you’re filing for bankruptcy or working with those creditors.

Bankruptcy Basics

For people who are considering bankruptcy, Denver actually has some excellent resources for information. Of course, you can look through the resources on our site, but you can also attend the free clinics each month. These are presented by the Denver Bar Association and can be tremendously informative for those who may be looking into bankruptcy and need more details. Those meetings are held on the second Tuesday and also on the fourth Wednesday each month and they begin at 1:30 pm and end at 3:00 pm. These sessions are wonderful because they will help you to better understand the implications on your credit, the expectations, and a wealth of other information you will want to know about the basics of bankruptcy. Those meetings are held in room 154 at the Bankruptcy Court Building.

Now for a few small basics about bankruptcy in Denver. The first type of bankruptcy we’ll explore is Chapter 7 and this type of bankruptcy is the most common. They’re often known as liquidation bankruptcies or just straight bankruptcy. Usually filed by a person or individual, they are also sometimes filed by partnerships and corporations. With Chapter 7 bankruptcies, a court appointed trustee will gather and sell non-exempt properties, then disbursing the proceeds to pay debts.

Chapter 13 bankruptcy is a bankruptcy that works on debt repayment. If you have a consistent income and your debts do not exceed a certain amount, you can file for Chapter 13, usually. Partnerships and corporations are not eligible for Chapter 13 bankruptcies, and this method typically allows you to keep your property because you repay those debts out of your income. The court does have to approve the debt repayment plan and this usually discharges most of the debts involved within 3-5 years.

The present filing fee for a Chapter 7 bankruptcy is $306.00, and the fee for Chapter 13 is $281.00. In some cases, a hardship may be filed and this may be waived or otherwise taken care of. You should understand that the court doesn’t take credit cards or personal checks to pay those fees. You can find more information on the various fees involved here.

These are all just very basic facts about bankruptcy in Denver. Often, information presented is a good starting place for you to find additional questions as well as answers to some of the basics. When you sit down with your attorney, be sure to have that list of questions handy, so that you can be absolutely sure you understand each facet of the process.

Don’t Wait Until The Last Minute To Hire An Attorney

Many people don’t want to face the fact that they have come to a point of filing for bankruptcy. This is understandable, but it’s a stigma that as more and more find themselves struggling to get by in this economy: need not be true. One of the more common mistakes that you will see in a bankruptcy case is in waiting until the very last minute to get some help. Now, of course, you can file a bankruptcy case without the help of an attorney, however, it’s really ill advised. You need someone on your side who not only understands bankruptcy code, but can also draft, file and serve each needed piece of paperwork. There are also a number of technical issues that may arise in the filing and processing of bankruptcy cases, and the courts are not at all forgiving about errors.

For a number of people, seeking out an attorney happens after they have tried to look into filing pro se- that is, without a lawyer. Last minute hires can be problematic though, for a number of reasons. If you have to hurry to choose your attorney you may rush through this process and not be very comfortable working with the attorney you get. It is always best to begin this process sooner, rather than later and the moment you decide to file for bankruptcy should be right before the moment you begin looking for an attorney. There is absolutely no reason to go it alone, and having someone who knows the system and will be looking out for your rights is key.

When filing a bankruptcy, you will certainly have many doubts, questions and sometimes fears over the process. Waiting until the last minute, you’re not going to have much time to consider all of those things, and get informed answers. You might not have time to really plan the filing, and as timing does play a role in bankruptcy filings, this can cost you. Certain debts carry with them certain loopholes, and there are a number of things that can be worked with to your better benefit given the right amount of time. It’s important to find those areas where your assets can be protected and all eligible debts can be discharged.

Planning ahead in a bankruptcy case will save you quite a bit of worry, time, and money. It’s important to get started on the right foot and have your case completed by someone who knows the system front to bank as well as any recent changes. Don’t wait to make sure that your new start is a good one.

Benefits of Chapter 13 Bankruptcy

Because Chapter 7 bankruptcy is the most commonly filed, it is also the most commonly discussed. However, in your own unique financial situation, a Chapter 13 bankruptcy might be more beneficial to you. When looking into your options for getting out of debt, most people will consider debt consolidation first, then bankruptcy and even in some cases, simply defaulting on those debts. Most people do not want to default, but aren’t sure that debt consolidation or bankruptcy can work for them. However, in reviewing all of the options available and discussing those with an attorney, you may find that the new beginning you’re looking for is more within your reach than you realize. For some, this is going to be exploring the benefits of a Chapter 13 bankruptcy.

The first benefit of a Chapter 13 bankruptcy is going to be that automatic stay. This is an order of relief that will protect you from your creditors. Anyone who has ever run into financial trouble knows that debt collectors can often be aggressive, intimidating and in some cases, even operating in illegal ways. Though there are laws in place to protect the consumer, the problem is that sometimes, what they do doesn’t quite constitute illegal harassment but is still yet damaging. Having an automatic stay in place stops that. This also stops foreclosures, repossessions and other collection judgments so long as that stay is in place.

Also, an approved Chapter 13 will usually have most of the dischargable debt paid in around three to five years. The consumer makes one payment to a bankruptcy trustee, and they then go on to disburse those funds to the creditors. Most cases of Chapter 13 bankruptcy payments result in a much lower payment than you would if you were paying each creditor in turn. Additionally, a Chapter 13 bankruptcy will help protect the equity in your home. It doesn’t require collateral, and so you aren’t risking foreclosure as long as you’re making your payments as scheduled.

One of the biggest but not often discussed benefits of the Chapter 13 is that you can also pay your debts in a priority order. So, if you have a mortgage on your payment plan, and a car loan, you can have those be paid first and the rest of the funds going to those unsecured debts. If you have enough disposable income after paying your essential bills each month, it may be worth your while to look into potentially filing a Chapter 13 bankruptcy. The best way to find out if this option is right for you is to discuss it with a qualified attorney.

Welcome to Our Denver, Colorado, Bankruptcy Law Blog

If you own or operate a business and you are struggling to make ends meet, or if you are an individual facing serious financial challenges, the federal bankruptcy laws can provide relief and help you get a fresh start. You want an experienced lawyer to help you through the process – one who can help you use the process to get the relief you seek.

Attorney Jon B. Clarke, with offices in Denver, brings more than 35 years of experience to businesses and individuals considering or wanting to file for bankruptcy protection. Attorney Clarke was named a Colorado SuperLawyer in 2006, one of only a handful of consumer bankruptcy attorneys to receive this distinction. He will help you determine the best course of actions, and will even work with you to identify any alternatives to bankruptcy that might meet your needs.

The Firm’s Bankruptcy Blog

Attorney Clarke has set up this bankruptcy blog to provide a forum of information and dialogue regarding issues related to business and consumer bankruptcy, including:

• Chapter 7 liquidations. The firm will help you determine if you qualify to permanently discharge debts under Chapter 7. Attorney Clarke will clearly identify which debts can be discharged, as well as which assets can be protected.
• Chapter 11 business reorganizations. Attorney Clarke works with businesses that seek to restructure debt and enter into new payment agreements with creditors. He will help you put together a plan of reorganization to submit to creditors and will review any proposed repayment plans you receive.
• Business and creditor workouts. The firm will help you attempt to resolve financial issues outside of bankruptcy, negotiating new payment arrangements, if possible.
• Credit card and other debt relief. Attorney Clarke can help you wipe out medical bills, credit card and other unsecured debt through a Chapter 7 filing.

The firm does not handle Chapter 13 consumer debt reorganizations, but will refer you to highly competent attorneys who can guide you through that process.

You are encouraged to actively participate in this blog by sending or posting any questions, concerns or comments that you have.

Attorney Clarke has a strong support staff to help you successfully complete the bankruptcy process. The firm will work with you to discharge or restructure business debt, credit card obligations, mortgage payments and other bills. To set up a private consultation, contact the firm online or call 720-279-9475 (toll free at 866-916-3950) for an appointment.