Practice Areas

Filing Bankruptcy in Colorado

Bankruptcy is a federal court case. At the Law Office of Jon B. Clarke, P.C., we focus on helping individuals and businesses with Chapter 7 bankruptcy. We also work with businesses in filing Chapter 11 re-organization bankruptcy. A similar bankruptcy option for individuals, Chapter 13, allows debtors to establish a repayment plan. We do not currently handle Chapter 13 for individuals but can offer you a referral to a qualified Colorado bankruptcy lawyer who does.

Colorado Bankruptcy Attorney Jon B. Clarke represents clients throughout Colorado and the Denver Metro area, including Littleton, Lakewood, Centennial, Lone Tree, Greenwood Village, Englewood, Highlands Ranch, Parker, Elizabeth, Castle Pines, and Castle Rock.

By focusing on Chapter 7 and Chapter 11 bankruptcy protection, we are best able to assist individuals and business seeking bankruptcy protection, regardless of how complex the case.

Chapter 7 Bankruptcy in Colorado

About 85 percent of all bankruptcies filed in Colorado are Chapter 7 bankruptcies, sometimes referred to as a liquidation bankruptcy. In 2010, more than 27,000 of the state’s 32,509 bankruptcy cases were filed as Chapter 7, according to the U.S. Bankruptcy Court for the District of Colorado.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed by Congress at the request of banks, credit card companies and other financial institutions, which sought to make it tougher for consumers to seek bankruptcy protection. In reality, the irresponsible lending and other unethical practices of these institutions has resulted in record numbers of consumers and businesses seeking protection under the law. A total of 27,113 Chapter 7 bankruptcies were filed in Colorado in 2010 – fewer than 25,000 a year were filed before the changes.

Banks may have succeeded in spreading misinformation; many consumers believe filing bankruptcy has grown much more difficult, or are afraid they won’t qualify. While it’s true the law instituted some changes, including the requirement of a means test and credit counseling, what has not changed is the powerful protection bankruptcy offers consumers and businesses alike.

The required means test looks at income and expenses of filers over a certain income level — $48,598 for individuals and $82,976 for a family of four as of mid-2011.

In a liquidation bankruptcy, most unsecured debt, such as credit card debt, is forgiven. The law allows for exemptions and other protections that can permit a consumer to keep their house, car and other personal items. Businesses typically cease operation and assets are sold to pay creditors.

Chapter 11 Bankruptcy in Colorado

Often referred to as a reorganization bankruptcy, Chapter 11 Bankruptcy in Denver allows a business to continue operation while making a plan to deal with debt. Such cases involve the debtor and creditors’ lawyers, the U.S. Trustee’s Office, the Unsecured Creditor’s Committee and the Bankruptcy Judge.

These cases can take several months to several years but provide a business with the breathing room necessary to continue operating by creating a legal entity known as the Debtor in Possession (DIP). Creditors are divided into several categories, including secured, priority unsecured and general unsecured. A creditor’s committee may be formed to participate in negotiating a plan with the DIP.

In some cases, a plan can be negotiated and readied for filing in as little as 4 to 6 months after a Chapter 11 case is filed.

If you are dealing with bankruptcy or debt-related issues in Colorado, contact the Law Office of Jon B. Clarke, P.C. To get started, please complete our Business or Consumer Debtor Analysis form. Or call toll free (303) 779-0600.

Colorado Bankruptcy – (866) 916-3950 – 30 Years of Service