Debt Solvency & Bankruptcy
Bankruptcy occurs when a person cannot pay their debts, and would like those debts to be officially cleared. In this trying economy many people have found their financial situation turned upside down by unexpected unemployment or medical bills. Sometimes you think you'll be able to pay them off, but eventually the bill collectors will start calling and you realize there is nothing you can do. The reality is that bankruptcy is not the end of the world. Many people find that getting a fresh start is what they need, and declare bankruptcy.
Chapter 7 is the most common form of bankrupcty in the United States. Under Chapter 7 some property is exempt from liquidation. Most unsecured debt, like medical bills and credit cards, is dischargeable. Bankrupcty reforms in 2005 now require that those who file for Chapter 7 bankruptcy undergo credit counseling. Some debts cannot be discharged, like child support, income taxes, property taxes, mortgages, student loans, and fines imposed for criminal activity. Chapter 7 bankruptcy stays on your credit record for 10 years.
Call Starzynski Van Der Jagt, P.C. to schedule a consultation with one of our Denver attorneys.